GE HealthCare reports Q3 revenue growth, raises earnings guidance amid tariff headwinds

GE HealthCare reported third-quarter 2025 revenue of $5.1 billion, a 6% increase year-over-year, driven by strong demand in the United States and EMEA and growth across its Imaging, Advanced Visualization Solutions, and Pharmaceutical Diagnostics segments.

“We delivered robust orders with growth across all segments in the third quarter,” said GE HealthCare President and CEO Peter Arduini. “As a result of our increased R&D investments, we are entering a new wave of innovation and, coupled with our focus on lean, we expect to accelerate top and bottom line growth.”

Total company orders rose 6% organically, with a book-to-bill ratio of 1.06, reflecting continued customer demand and a healthy capital equipment environment. However, net income fell to $446 million, compared with $470 million during the same quarter last year, due largely to increased tariff costs.

The company reported diluted earnings per share (EPS) of $0.98, down from $1.02 a year ago, while adjusted EPS declined to $1.07 from $1.14. GE HealthCare said margins and EPS would have exceeded prior-year results if tariff impacts were excluded.

Adjusted earnings before interest and taxes (EBIT) totaled $761 million, compared with $795 million last year. Net income margin was 8.7%, down from 9.7% a year ago, while adjusted EBIT margin declined to 14.8% from 16.3%.

Cash flow from operating activities was $593 million, down $149 million year-over-year, and free cash flow was $483 million, a decrease of $168 million.

Updated Full-Year 2025 Outlook

GE HealthCare raised the lower end of its full-year adjusted EPS guidance to a range of $4.51 to $4.63, compared to its previous range of $4.43 to $4.63. The company reaffirmed its expectations for approximately 3% organic revenue growth and free cash flow of at least $1.4 billion.

The updated forecast includes an estimated $265 million impact to adjusted EBIT and a $0.45 reduction to adjusted EPS due to tariffs. The company’s assumptions include significant tariff increases expected between August and November 2025 for products traded between the United States, China, Mexico, Canada, and the European Union.

Despite tariff pressures, Arduini said GE HealthCare sees continued commercial momentum and expects sustained growth from its broad product portfolio and investment in new technologies.

“We continue to see momentum with commercial execution, where our teams leverage our broad portfolio and services, creating sustainable revenue and strengthening customer relationships,” Arduini said.