GE HealthCare: Strong Demand for Medical Devices Drives Upbeat 2025 Profit Forecast

GE HealthCare Technologies has forecasted an upbeat 2025 profit, driven by strong demand for its medical devices, particularly in the United States. The company expects adjusted profit of between $4.61 and $4.75 per share, with the midpoint above analysts' average estimate of $4.66 per share. This optimism is underpinned by several factors, including robust revenue growth, strategic investments in innovation, and a commitment to its precision care strategy.



In the fourth quarter of 2024, GE HealthCare reported revenue growth of 2% year-over-year, driven by demand in its Advanced Visualization Solutions (AVS) and Pharmaceutical Diagnostics (PDx) segments. The company's total company book-to-bill was 1.09 times, indicating strong commercial momentum. Additionally, GE HealthCare's net income margin and adjusted EBIT margin both saw significant improvements, reflecting benefits from productivity and volume.



GE HealthCare's strong performance is a testament to its dedication to innovation and strategic investments. The company has invested approximately $2.2 billion since 2022 in research and development, creating a pipeline of innovation that includes cloud-based applications, enhancements to its product portfolio, and new, AI-enabled solutions to address healthcare challenges. These investments are expected to drive future growth and contribute to the company's positive outlook.

Moreover, GE HealthCare has bolstered its market position through strategic acquisitions, such as the acquisition of MIM Software, which has further enhanced its precision care strategy. The company's commitment to its precision care strategy, supported by innovation, productivity initiatives, and commercial execution, is expected to drive continued growth and profitability in 2025.

However, GE HealthCare is not without potential headwinds. The company faces challenges such as U.S. tariffs on Chinese products and market softness in China. To address these headwinds, GE HealthCare plans to maintain its positive outlook by continuing to deliver revenue growth driven by demand in its AVS and PDx businesses, with overall strength in the U.S. Additionally, the company is committed to its precision care strategy for growth, which includes investing in R&D for future growth, helping drive more than 40 innovations in 2023, and bolstering its market position with strategic acquisitions.

In conclusion, GE HealthCare's upbeat 2025 profit forecast is driven by strong demand for its medical devices, particularly in the United States. The company's robust revenue growth, strategic investments in innovation, and commitment to its precision care strategy contribute to its optimism about future performance. While the company faces potential headwinds, its focus on delivering revenue growth and maintaining its precision care strategy is expected to drive continued growth and profitability in 2025.