GE HealthCare, publicly traded as NASDAQ: GEHC, reported a strong quarterly performance with adjusted earnings per share (EPS) of $1.44, surpassing analyst expectations of $1.40. This earnings beat accompanied revenue of $5.69 billion, which also exceeded the consensus forecast of $5.61 billion, highlighting the health company’s ability to grow its business despite broader market uncertainties.
The company recorded revenue growth of 7.1% year-over-year, with an organic growth component of 4.8%. This performance was largely driven by robust demand within the Pharmaceutical Diagnostics (PDx), Imaging, and Advanced Visualization Solutions (AVS) divisions. GE HealthCare reported solid customer traction across the United States, and across diverse international markets including Europe, the Middle East, and Africa (EMEA).
Peter Arduini, President and CEO of GE HealthCare, emphasized the successful execution during the period, noting that "we delivered a strong quarter and year with growth in Pharmaceutical Diagnostics, Imaging, and Advanced Visualization Solutions." He attributed this success to solid capital investment trends, improved commercial execution strategies, and continued demand for new product offerings.
The company’s momentum was underscored by a 2% organic increase in total orders, as well as a book-to-bill ratio of 1.06, signaling that order intake exceeded shipments during the quarter. This is indicative of sustained demand, positioning the company well for future revenue streams.
Jay Saccaro, Vice President and Chief Financial Officer, reflected on operational resilience despite tariff-related costs. "We ended 2025 in a position of strength with a record backlog," he stated, adding that the company effectively mitigated gross tariff impacts.
Nonetheless, profitability metrics reflected margin pressure. The reported net income margin stood at 10.3%, representing a decline of 320 basis points year-over-year. Similarly, the adjusted EBIT margin contracted by 200 basis points to reach 16.7%. These reductions were mainly attributed to tariff expenses and an unfavorable revenue mix, although some mitigation was provided by volume growth and pricing adjustments.
Segment Performance Details
The Imaging division experienced a revenue increase of 6.6% overall, with organic revenue growth of 5.3%, amounting to $2.55 billion in sales. Advanced Visualization Solutions saw sales rise by 5.9%, or 4.2% organically, reaching $1.53 billion. Pharmaceutical Diagnostics posted the most pronounced growth, with sales climbing 22.3% (12.7% organic) to total $790 million. In contrast, Patient Care Solutions sales declined marginally by 0.3% (1.1% organically), registering $825 million in revenue.
Outlook and Guidance for Fiscal Year 2026
Looking ahead, GE HealthCare anticipates tariff impacts to diminish in fiscal 2026 relative to the previous year, assuming current tariff rates persist. The company remains cautiously optimistic, with leadership underscoring a pipeline of differentiated innovations fueling ongoing momentum.
Peter Arduini commented, "While the macroeconomic environment continues to be dynamic, we are focused on delivering profitable growth, strong cash flow, and increasing shareholder value." GE HealthCare’s forecast for adjusted earnings per share in fiscal 2026 lies between $4.95 and $5.15, compared to a consensus estimate of $4.92, suggesting confidence in sustained profitability despite the noted headwinds.
Market Response
Following the earnings announcement, GE HealthCare’s shares rose by approximately 6.64% to reach $84.01 as of Wednesday’s market close, demonstrating investor approval of the quarterly results and outlook.