GE HealthCare Q1 Earnings & Sales Beat Estimates, Net Margin Rises

GE HealthCare GEHC reported first-quarter 2025 adjusted earnings per share (EPS) of $1.01, which beat the Zacks Consensus Estimate of 91 cents by 11%. Also, the bottom line improved 12.2% year over year.

GAAP EPS in the quarter was $1.23, up 51.9% from the year-ago level. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)

Shares of GEHC gained 4.6% during pre-market trading following better-than-expected earnings in the first quarter. The company’s shares have lost 13% so far this year against the industry’s 3.2% growth. The S&P 500 Index has decreased 6.4% in the same period.

Revenue Details

The company reported revenues of $4.78 billion, up 3% year over year on a reported basis and 4% organically. The top line beat the Zacks Consensus Estimate by 2.5%. Total company orders increased 10% 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 $2.14 billion, up 4% year over year on a reported basis and 5% organically.

Segment EBIT was $199 million, up 20% year over year.

Advanced Visualization Solutions

Revenues totaled $1.24 billion, up 1% year over year on a reported basis and 3% on an organic basis.

Segment EBIT was $261 million, up 2% year over year.

Patient Care Solutions

Revenues amounted to $753 million, up 1% year over year on a reported basis and 2% organically.

Segment EBIT was $48 million, down 41% year over year.

Pharmaceutical Diagnostics

Revenues totaled $632 million, up 6% year over year and 8% on an organic basis.

Segment EBIT was $205 million, up 15% year over year.

Margins

Net income margin was 11.8%, up 380 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 first quarter was $250 million compared with $419 million a year ago.

Financial Position

GEHC exited the first quarter with cash, cash equivalents and investments of $2.47 billion compared with $2.89 billion in the previous quarter.

Total assets increased to $33.59 billion from $33.09 billion on a sequential basis.

2025 Guidance

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

The company now expects adjusted EPS to be in the range of $3.90-$4.10, down from $4.61-$4.75 expected previously. The guide range indicates a decline of 9-13% year over year, reflecting the unfavorable impact of tariffs. Revenues are anticipated to grow 2-3% organically, reflecting continued demand for its products and services. The Zacks Consensus Estimate for 2025 EPS and revenues is pegged at $4.70 and $19.95 billion, respectively.

GE HealthCare Technologies Inc. Price, Consensus and EPS Surprise

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

Zacks Rank and Stocks to Consider

GEHC carries a Zacks Rank #4 (Sell) at present.

Some better-ranked stocks from the same medical industry are Fresenius Medical Care FMS, Masimo MASI and AdaptHealth AHCO.

Fresenius Medical, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 28.9% for 2025. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

FMS’ earnings beat estimates in three of the trailing four quarters and met in one, delivering an average surprise of 15.67%. The company is expected to release first-quarter results next month.

FMS’ shares have gained 10.3% so far this year.

Masimo, carrying a Zacks Rank of 2 at present, has an estimated growth rate of 20% for 2025.

MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 14.41%. Its shares have risen 58.5% compared with the industry’s 3.9% growth year to date. The company is expected to release first-quarter results in May.

MASI’s shares have lost 1.3% so far this year.

AdaptHealth, carrying a Zacks Rank #2 at present, has an estimated earnings growth rate of 16.7% for 2025.  The company’s earnings beat estimates in three of the trailing four quarters and missed in one, delivering a negative average surprise of 4.17%. The company is expected to release first-quarter results next month.

AHCO's shares have lost 12.1% so far this year.

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

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