GE HealthCare Reports Strong Q2 Results, Adjusts Tariff Impact Outlook

GE HealthCare, a leading medical imaging company, has reported robust second-quarter results for 2025, with revenue reaching $5 billion, marking a 3% increase year over year. The company has also revised its financial outlook, projecting reduced tariff expenses and maintaining healthy demand for capital equipment.

Improved Financial Performance and Revised Outlook

GE HealthCare's net income for Q2 rose to $486 million, representing a nearly 14% increase compared to the same period last year. In light of these strong results, the company has boosted its forecast for organic revenue growth in 2025 to 3%, up from the previous range of 2% to 3%.

CEO Peter Arduini stated during the earnings call, "We're seeing activity pick up, but the market recovery is taking a little bit longer. We think the longer-term outlook will be positive just based on the size of the country."

The company has also significantly adjusted its tariff impact projections. GE HealthCare now expects a 45-cent tariff impact to adjusted earnings per share for the full year, approximately half of the 85-cent hit projected in the previous quarter. This reduction aligns with revised outlooks from other major medical device manufacturers, such as Boston Scientific and Johnson & Johnson.

Capital Equipment Demand and Market Dynamics

Despite concerns about potential softening of patient volumes due to insurance coverage changes, GE HealthCare reports a "robust" capital environment and healthy procedure growth. CFO Jay Saccaro emphasized that customers continue to invest in innovative imaging equipment.

In the United States, hospitals are replacing aging equipment, a process that was delayed during the COVID-19 pandemic. The demand is further driven by the need for imaging to support treatment advances in areas such as electrophysiology and pharmaceuticals requiring more follow-up.

Arduini highlighted the importance of productivity-enhancing equipment, stating, "It's difficult for U.S. hospitals to get staffed, and so equipment that moves the patient swiftly through the institution with a high-quality diagnosis is a very important asset."

Supply Chain Restructuring and Future Outlook

GE HealthCare is implementing long-term changes to its supply chain to mitigate tariff impacts. These efforts include investing in more local manufacturing and shifting capacity within supplier networks to more tariff-friendly locations.

Saccaro explained, "As we've seen these trade deals shape up, we're now in a position to begin to execute on some of these, which we'll do in the second half of the year, and then those will benefit 2026."

For 2026, the company expects tariff expenses to be below the 45 cents forecast for 2025, thanks to these mitigation efforts and selective price increases.