Tariffs Bite Into GE HealthCare Q3 Profit Margin
Tariffs Bite Into GE HealthCare Q3 Profit Margin
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Tariffs Bite Into GE HealthCare Q3 Profit Margin

🕒︎ 2025-10-29

Copyright Benzinga

Tariffs Bite Into GE HealthCare Q3 Profit Margin

On Wednesday, GE HealthCare (NYSE:GEHC) reported third-quarter 2025 adjusted earnings of $1.07 per share, which beat the consensus of $1.05. GEHC is having a challenging session. Watch the momentum here It was down from $1.14 a year ago due to the impact of tariff expenses. The company reported sales of $5.14 billion, beating the consensus of $5.08 billion. Revenues increased 6% on reported and 4% on an organic basis year-over-year. Revenue growth was driven by strength in the U.S. and the European, Middle Eastern, and African (EMEA) region. Also Read: Trump Administration Review Targets Medical Supply Chain Vulnerabilities Total company book-to-bill was 1.06 times. Total company orders increased 6% organically year-over-year. Net income margin was 8.7% versus 9.7% for the prior year, down 100 basis points (bps). Adjusted EBIT margin was 14.8% versus 16.3%, down 150 bps, impacted by tariffs, partially offset by benefits from volume and price. The company added that, excluding tariff impacts, margin and EPS would have exceeded the prior year. Cash flow from operating activities amounted to $593 million, while free cash flow totaled $483 million. GE HealthCare President and CEO Peter Arduini said, "We delivered robust orders with growth across all segments in the third quarter. This was led by customer demand for our differentiated solutions and a healthy capital equipment environment. Revenue performance was driven by Imaging, Advanced Visualization Solutions, and Pharmaceutical Diagnostics, and was ahead of our expectations." Guidance GE HealthCare raised fiscal 2025 adjusted earnings guidance from $4.43-$4.63 to $4.51-$4.63 compared to the consensus of $4.53. The company reaffirms adjusted EBIT margin of 15.2%-15.4%, reflecting a decline of 110 bps to 90 bps versus the 2024 Adjusted EBIT margin of 16.3%. The guidance includes approximate tariff impacts of $265 million to adjusted EBIT and 45 cents to adjusted earnings per share. GEHC Price Action: GE HealthCare Techs shares were down 2.03% at $77.79 at the time of publication on Wednesday, according to Benzinga Pro data. Read Next: Trump Administration Sued Over Suspending Food Benefits Amid Shutdown Photo by PixelBiss via Shutterstock

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