Tariffs Weigh on GE HealthCare Outlook

Here's our initial take on GE HealthCare's (NASDAQ: GEHC) first-quarter financial report.GE HealthCare's business won't blow the doors off with big revenue growth. Sales in its first quarter were up 3%, with every segment of its business growing at least 2%. But what the company is doing very well is generating higher margins to boost profitability. Adjusted EBIT (earnings before interest and taxes) was 15%, up from 14.7% on higher volume and improved productivity. EBIT margin improved in all but one of its business segments, helping drive profit margin from 8% in the year-ago quarter to 11.8% to start fiscal 2025.One of the key factors behind this was the company's continued expense discipline, with operating expenses increasing 1.5%, half the rate of revenue growth. This resulted in 16% higher operating income. Combining this with a few other beneficial financial items on the income statement, earnings per share climbed 52% to $1.23 per share.Continue reading

Apr 30, 2025 - 16:08

Here's our initial take on GE HealthCare's (NASDAQ: GEHC) first-quarter financial report.

GE HealthCare's business won't blow the doors off with big revenue growth. Sales in its first quarter were up 3%, with every segment of its business growing at least 2%. But what the company is doing very well is generating higher margins to boost profitability. Adjusted EBIT (earnings before interest and taxes) was 15%, up from 14.7% on higher volume and improved productivity. EBIT margin improved in all but one of its business segments, helping drive profit margin from 8% in the year-ago quarter to 11.8% to start fiscal 2025.

One of the key factors behind this was the company's continued expense discipline, with operating expenses increasing 1.5%, half the rate of revenue growth. This resulted in 16% higher operating income. Combining this with a few other beneficial financial items on the income statement, earnings per share climbed 52% to $1.23 per share.