GE HealthCare reports first quarter growth, updates full-year outlook amid trade headwinds

GE HealthCare reports first quarter results: ©Eagle - stock.adobe.com

GE HealthCare (Nasdaq: GEHC) posted first-quarter results marked by robust revenue, order, and profit growth, driven primarily by strength in the U.S. market. The company also completed a key acquisition and launched a new radiopharmaceutical product, even as it revised its full-year guidance in response to new global trade tariffs.

The company reported $4.8 billion in revenue for the first quarter ended March 31, 2025, a 3% increase from the same period last year (4% organically). Orders grew organically by a record 10% year-over-year, while net income rose to $564 million, up from $374 million in Q1 2024. Diluted earnings per share jumped to $1.23 from $0.81 a year ago.

“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.”

Arduini also emphasized the company’s recent acquisition of Japan-based radiopharmaceutical company Nihon Medi-Physics, saying the deal “will increase global access to our next-generation radiopharmaceuticals.”

Segment-level performance showed broad-based revenue growth across GE HealthCare’s business lines:

• Imaging revenue rose 4% (5% organic) to $2.14 billion, with EBIT up 20% to $199 million.
• Advanced Visualization Solutions revenue increased 1% (3% organic), with a strong 21.1% EBIT margin.
• Pharmaceutical Diagnostics grew revenue 6% (8% organic) to $632 million, with EBIT rising 15%.
• Patient Care Solutions saw modest revenue growth but EBIT declined 41% year-over-year.

Notably, GE HealthCare launched its new PET radiotracer, Flyrcado (flurpiridaz F 18), in April and is building out U.S. production and distribution infrastructure. “We successfully launched Flyrcado… and are making progress on the roll out, including establishing a nationwide contract manufacturing network and steadily increasing doses,” Arduini said.

Other recent milestones include a $30 million investment by St. Luke’s University Health Network in GE HealthCare’s AI-enabled MRI technology, and the unveiling of several new imaging and AI-enhanced diagnostic systems.

Despite the strong Q1 showing, GE HealthCare revised its full-year 2025 guidance to reflect expected impacts from announced tariffs. The company now forecasts:

• Organic revenue growth of 2–3% (unchanged),
• Adjusted EBIT margin of 14.2–14.4%, down from previous guidance of 16.7–16.8%,
• Adjusted EPS of $3.90–$4.10, lowered from $4.61–$4.75, reflecting about $0.85 in estimated tariff-related impact,
• Free cash flow of at least $1.2 billion, down from previous guidance of $1.75 billion.

“We are actively driving mitigation actions,” Arduini noted, in reference to the global trade environment. “We continue to see strong customer demand in many of the markets we serve and are well-positioned to drive long-term value as we invest in future innovation.”