GE HealthCare Q2 2025 Earnings Call Transcript: Solid Quarter with Healthy Demand

GE HealthCare Technologies Inc. reported Q2 2025 earnings, with President and CEO Peter Arduini stating the company delivered another solid quarter marked by continued business execution, healthy customer demand and ongoing progress in its transformation. The company's Q2 results will be discussed during the earnings call.

GE HealthCare Technologies Inc. (GEHC) reported its second-quarter (Q2) 2025 earnings on July 30, 2025, with President and CEO Peter Arduini noting a strong performance marked by continued business execution, healthy customer demand, and progress in its transformation strategy. The company reported revenues of $5.0 billion, up 3% year-over-year (YoY), with organic revenue growth of 2%. Service revenue grew 7%, while product revenue increased by 2% [1].

Arduini highlighted multiple significant deals, including the largest-ever order of Omni Legend PET/CT systems in the U.S., a $90 million strategic collaboration with Ascension, a broadened relationship with a major provider in Mexico, and a $250 million five-year collaboration in Europe. He stated, "Success in our global strategy is evidenced by the adoption of new product introductions, which generated over 50% of our sales" [1].

The company's adjusted EBIT margin was 14.6%, down 80 basis points (bps) year-over-year due to tariff impacts, which were partially offset by lean actions and volume. Adjusted EPS was $1.06 per share, up 6% YoY. The company reported a record backlog of $21.3 billion and free cash flow of $7 million, up $189 million YoY [1].

Arduini raised the company's full-year 2025 guidance, expecting organic revenue growth of approximately 3%. Adjusted EBIT margin is forecast at 15.2% to 15.4%, revised up from 14.2% to 14.4% previously. The company projects adjusted EPS of $4.43 to $4.63 for the full year, up from the previous estimate of $3.90 to $4.10 per share. Tariff impact in adjusted EPS guidance for 2025 is now $0.45, improved from previous expectations. Free cash flow for 2025 is now expected to be at least $1.4 billion, compared to the prior expectation of at least $1.2 billion [1].

During the earnings call, Arduini described robust U.S. demand, continued European growth, and a paced China recovery. He stated, "We think the longer-term outlook will be positive... But we have, I'd still say, a paced view of how that market will recover" [1]. CFO James K. Saccaro detailed "no-regrets moves" and longer lead time supply chain restructuring, adding, "As we've seen these trade deals shape up, we're now in a position to begin to execute on some of these, which we'll do in the second half of the year and then those will benefit 2026" [1].

Analysts' tone was generally constructive but raised concerns on capital trends, tariffs, China recovery, and margin pressures. Management remained confident, emphasizing progress in tariff mitigation, innovation pipeline, and backlog strength. Arduini stated, "We're pleased with the orders and revenue performance in the second quarter and in the first half of the year, which has been supported by strong customer demand" [1].

GE HealthCare Technologies delivered a strong Q2 2025, raising its full-year guidance for adjusted EPS and organic revenue growth as tariff impacts eased and operational momentum continued. Management emphasized robust customer demand, a record backlog, and a healthy pipeline of innovation, with new product launches and strategic collaborations driving growth. While margin headwinds and China’s slow recovery remain, ongoing mitigation strategies and a focus on high-value solutions position the company to pursue accelerated growth and improved profitability into 2026.

References:
[1] https://seekingalpha.com/news/4474447-ge-healthcare-raises-2025-eps-outlook-to-4_43-4_63-and-lifts-organic-revenue-growth-target-to