GE Healthcare rises 4% after boosting FY earnings forecast

GE Healthcare rises 4% after boosting FY earnings forecast

GE Healthcare (Nasdaq: GEHC) saw its stock rise by 4% following the announcement of its second-quarter 2025 financial results and an upward revision in its full-year guidance. The company reported a 3% year-over-year (YoY) revenue growth, with organic revenue growth of 2%, and a net income margin of 9.7% compared to 8.9% in the prior year. The adjusted earnings before interest and taxes (EBIT) margin decreased to 14.6% from 15.3%, while diluted earnings per share (EPS) increased to $1.06 from $0.93 [1].

The company's President and CEO, Peter Arduini, highlighted the strong orders and revenue performance across all segments, particularly in the U.S. and Europe, Middle East, and Africa (EMEA). He also emphasized the company's progress on tariff mitigation and strategic priorities, which have contributed to long-term value creation.

For the second quarter, GE Healthcare's total company financial performance included revenues of $5.0 billion, a 3% increase YoY, driven by strong performance in the U.S. and EMEA. The company's total company book-to-bill ratio was 1.07, and total company orders increased organically by 3% YoY. Net income attributable to GE Healthcare was $486 million, up from $428 million in the prior year, while adjusted EBIT was $729 million, down from $742 million [1].

Segment-wise, Imaging and Advanced Visualization Solutions segments reported 2% and 3% YoY revenue growth, respectively. The Pharmaceutical Diagnostics segment saw a 14% YoY revenue increase, driven by strong demand for radiopharmaceutical products like Vizamyl, Cerianna, and Flyrcado. The Patient Care Solutions segment reported a 1% YoY revenue increase [1].

Looking ahead, GE Healthcare has raised its full-year 2025 guidance. The company expects organic revenue growth of approximately 3% YoY, compared to its previous guidance of 2% to 3%. The adjusted EBIT margin is expected to be in the range of 15.2% to 15.4%, down from the previous guidance of 14.2% to 14.4%. Adjusted EPS is projected to be in the range of $4.43 to $4.63, compared to the previous guidance of $3.90 to $4.10. Free cash flow is expected to be at least $1.4 billion, up from the previous guidance of at least $1.2 billion [1].

The stock price increase reflects investors' confidence in the company's ability to navigate tariff challenges and maintain strong operational performance. GE Healthcare's strategic focus on innovation, such as AI-enabled medical devices and advanced imaging solutions, is expected to drive future growth and profitability.

References:

[1] https://www.stocktitan.net/news/GEHC/ge-health-care-reports-second-quarter-2025-financial-70lxlxpf1jdz.html