GE HealthCare’s first quarter results surpassed Wall Street’s revenue and non-GAAP profit expectations, buoyed by robust demand in imaging and strong U.S. market performance. CEO Peter Arduini credited “record double-digit orders growth as a standalone company” to heightened customer focus on imaging solutions for cardiology and oncology, as well as share gains in key markets. The company noted broad-based organic revenue growth across all segments, with particular momentum in product innovation and new contract wins. In the words of CFO Jay Saccaro, “organic orders growth was robust, up 10% year-over-year, the highest since our spend,” underscoring healthy market demand and a record backlog.
Is now the time to buy GEHC? Find out in our full research report (it’s free).
GE HealthCare (GEHC) Q1 CY2025 Highlights:
- Revenue: $4.78 billion vs analyst estimates of $4.66 billion (2.8% year-on-year growth, 2.5% beat)
- Adjusted EPS: $1.01 vs analyst estimates of $0.91 (10.6% beat)
- Adjusted EBITDA: $826.9 million vs analyst estimates of $794.4 million (17.3% margin, 4.1% beat)
- Management lowered its full-year Adjusted EPS guidance to $4 at the midpoint, a 14.5% decrease
- Operating Margin: 13.2%, up from 11.6% in the same quarter last year
- Organic Revenue rose 4.1% year on year (-0.5% in the same quarter last year)
- Market Capitalization: $34.85 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions GE HealthCare’s Q1 Earnings Call
- Larry Biegelsen (Wells Fargo) asked about the cadence and long-term impact of tariffs, to which CFO Jay Saccaro explained that mitigation efforts should reduce the impact below $0.85 per share by 2026, with most actions focused on supply chain localization and sourcing changes.
- Jason Bednar (Piper Sandler) questioned whether mitigation actions are being accelerated ahead of long-range planning. CEO Peter Arduini emphasized that while the roadmap has changed, the company’s medium-term margin and growth targets remain intact, supported by aggressive supply and configuration adjustments.
- Vijay Kumar (Evercore ISI) sought clarity on China-related tariffs and the upside potential if exemptions occur. Saccaro detailed that bilateral tariffs account for $0.65 of the $0.85 impact, and a hypothetical rollback could benefit EPS by $0.40, though no such changes are assumed in guidance.
- Robbie Marcus (JPMorgan) inquired about the Flyrcado product rollout and potential impact of anti-dumping actions in China. Arduini reported Flyrcado’s launch is on track, with positive feedback, and downplayed the risk of anti-dumping investigations, noting no material impact is expected in China.
- Joanne Wuensch (Citi) asked about hospital CapEx trends and photon counting CT timing. Saccaro and Arduini confirmed a constructive demand environment in both the U.S. and Europe, and reiterated that photon counting CT is slated for 2025 submission and 2026 launch.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the pace and effectiveness of tariff mitigation strategies, (2) the ramp-up and adoption of new products like Flyrcado and Revolution Vibe, and (3) trends in order growth and backlog conversion, especially as market conditions evolve in China and key international markets. Progress on these fronts will help determine GE HealthCare’s ability to sustain revenue growth and margin improvement.
GE HealthCare currently trades at $76.15, up from $68.09 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
Our Favorite Stocks Right Now
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
