GE HealthCare at RSNA 2024
GE HealthCare posts solid Q1 gains, but trims annual guidance due to tariffs
April 30, 2025
by Gus Iversen, Editor in Chief
GE HealthCare reported a strong start to 2025 with record orders and broad-based revenue growth across all business segments, but revised its full-year earnings guidance downward due to the rising impact of global tariffs, particularly those affecting trade between the U.S. and China.
The Chicago-based company posted $4.8 billion in revenue for the first quarter, reflecting 4% organic growth compared to the same period last year. Adjusted earnings per share rose 12% to $1.01, while adjusted EBIT grew 5% to $715 million, driven by increased volume, higher-margin product introductions, and ongoing productivity initiatives.
GE HealthCare’s book-to-bill ratio came in at 1.09x, underlining strong demand. Imaging revenues rose 5% organically, supported by solid U.S. performance and margin expansion. Pharmaceutical diagnostics led segment growth with an 8% revenue increase, followed by patient care solutions and advanced visualization solutions at 2% and 3%, respectively.
“First quarter results reflect strong execution as we start the year with robust revenue, orders and profit growth, which were driven by strength in the U.S.," said GE HealthCare president and CEO Peter Arduini. "We remain focused on delivering on our precision care and growth acceleration strategies, underscored by the closing of our acquisition of Nihon Medi-Physics, which we expect will increase global access to our next-generation radiopharmaceuticals."
However, escalating trade restrictions have begun to weigh on the outlook. The company now anticipates adjusted EPS for 2025 between $3.90 and $4.10, a downward revision from the earlier range of $4.61 to $4.75. It cited an estimated $0.85 per share hit from tariffs, with about 75% of the impact tied to U.S.-China trade.
To offset these effects, GE HealthCare said it is leveraging its global manufacturing footprint, pursuing U.S.-Mexico-Canada Agreement (USMCA) exemptions, and tightening operational spending.
"More than half of the expected tariff impact has been mitigated to date," the company noted in its presentation, adding that efforts are ongoing with additional savings expected in 2026.
Despite the revised earnings forecast, GE HealthCare reaffirmed its full-year organic revenue growth guidance of 2% to 3%.
The Chicago-based company posted $4.8 billion in revenue for the first quarter, reflecting 4% organic growth compared to the same period last year. Adjusted earnings per share rose 12% to $1.01, while adjusted EBIT grew 5% to $715 million, driven by increased volume, higher-margin product introductions, and ongoing productivity initiatives.
GE HealthCare’s book-to-bill ratio came in at 1.09x, underlining strong demand. Imaging revenues rose 5% organically, supported by solid U.S. performance and margin expansion. Pharmaceutical diagnostics led segment growth with an 8% revenue increase, followed by patient care solutions and advanced visualization solutions at 2% and 3%, respectively.
“First quarter results reflect strong execution as we start the year with robust revenue, orders and profit growth, which were driven by strength in the U.S.," said GE HealthCare president and CEO Peter Arduini. "We remain focused on delivering on our precision care and growth acceleration strategies, underscored by the closing of our acquisition of Nihon Medi-Physics, which we expect will increase global access to our next-generation radiopharmaceuticals."
However, escalating trade restrictions have begun to weigh on the outlook. The company now anticipates adjusted EPS for 2025 between $3.90 and $4.10, a downward revision from the earlier range of $4.61 to $4.75. It cited an estimated $0.85 per share hit from tariffs, with about 75% of the impact tied to U.S.-China trade.
To offset these effects, GE HealthCare said it is leveraging its global manufacturing footprint, pursuing U.S.-Mexico-Canada Agreement (USMCA) exemptions, and tightening operational spending.
"More than half of the expected tariff impact has been mitigated to date," the company noted in its presentation, adding that efforts are ongoing with additional savings expected in 2026.
Despite the revised earnings forecast, GE HealthCare reaffirmed its full-year organic revenue growth guidance of 2% to 3%.