GE HealthCare Q2 Earnings & Sales Beat Estimates, Net Margin Rises

GE HealthCare GEHC reported second-quarter 2025adjusted earnings per share (EPS) of $1.06, which beat the Zacks Consensus Estimate of 91 cents by 16.5%. Also, the bottom line improved 6% year over year.

GAAP EPS in the quarter was also $1.06, up 13.9% from the year-ago level.

Revenue Details

The company reported revenues of $5 billion, up 3% year over year on a reported basis and 2% organically. The top line beat the Zacks Consensus Estimate by 0.1%. Total company orders increased 3% organically year over year.

Revenues were driven by strength in the U.S. market across all segments, especially in the Imaging and Pharmaceutical Diagnostics segments.

Segmental Details

Imaging

Revenues from this segment totaled $2.2 billion, up 2% year over year on a reported basis and 1% organically.

Segment EBIT was $188 million, down 10% year over year.

Advanced Visualization Solutions

Revenues totaled $1.29 billion, up 3% year over year on a reported basis and 2% on an organic basis.

Segment EBIT was $267 million, up 4% year over year.

Patient Care Solutions

Revenues amounted to $778 million, up 1% year over year on a reported basis and flat organically.

Segment EBIT was $60 million, down 23% year over year.

Pharmaceutical Diagnostics

Revenues totaled $729 million, up 14% year over year and 5% on an organic basis.

Segment EBIT was $213 million, up 7% year over year.

GE HealthCare Technologies Inc. Price, Consensus and EPS Surprise

GE HealthCare Technologies Inc. price-consensus-eps-surprise-chart | GE HealthCare Technologies Inc. Quote

Margins

Net income margin was 9.7%, up 80 basis points from the prior-year level, primarily attributable to benefits from productivity and pricing.

Cumulative cash flow from operating activities at the end of the second quarter was $344 million compared with $300 million a year ago.

Financial Position

GEHC exited the second quarter with cash, cash equivalents and investments of $3.76 billion compared with $2.47 billion in the previous quarter.

Total assets increased to $35.5 billion from $33.59 billion on a sequential basis.

2025 Guidance

GE HealthCare raised its earnings and organic revenue guidance for 2025.

The company now expects adjusted EPS in the range of $4.43-$4.63, up from $3.90-$4.10 expected previously. The guide includes approximately 45 cents of unfavorable impact of tariffs. Revenues are now anticipated to grow 3% organically, up from 2-3% expected previously and therefore reflecting continued demand for its products and services. The Zacks Consensus Estimate for 2025 EPS and revenues is pegged at $4.02 and $20.31 billion, respectively.

Zacks Rank and Stocks to Consider

GEHC carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. MEDP, West Pharmaceutical Services, Inc. WST and Boston Scientific Corporation BSX.

Medpace Holdings, sporting a Zacks Rank of 1 (Strong Buy), reported second-quarter 2025 EPS of $3.10, beating the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.

West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.

West Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.

Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy).

Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.

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This article originally published on Zacks Investment Research (zacks.com).

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