10-QPeriod: Q2 FY2025

GE HealthCare Technologies Inc. Quarterly Report for Q2 Ended Jun 30, 2025

Filed July 30, 2025For Securities:GEHC

Summary

GE HealthCare Technologies Inc. reported solid financial results for the six months ended June 30, 2025, with total revenues increasing by 3% to $9.78 billion. Net income attributable to GE HealthCare saw a significant jump of 31% to $1.05 billion, or $2.29 per diluted share. This growth was driven by robust performance across its segments, particularly the Pharmaceutical Diagnostics (PDx) segment, boosted by the full acquisition of Nihon Medi-Physics Co., Ltd. (NMP). The company also demonstrated improved operational efficiency, with operating income rising 12% year-over-year. While gross profit faced some pressure from cost inflation and tariffs, this was partially offset by a decrease in operating expenses, including lower R&D and SG&A costs. The company's liquidity remains strong, with $3.76 billion in cash, cash equivalents, and restricted cash, and access to $3.5 billion in revolving credit facilities, positioning it well to meet its financial obligations and invest in future growth.

Financial Highlights

48 data points
Beta

Revenue

$5.01B

39.6% Gross Margin

Net Income

$486.00M

9.7% Net Margin

EPS (Diluted)

$1.06

Total Assets

$35.50B

Cash & Equivalents

$3.74B

Free Cash Flow

$94.00M

Financial Statements
Beta
Revenue$5.01B
Gross Profit$1.99B
R&D Expenses$302.00M
SG&A Expenses$1.03B
Operating Expenses$1.33B
Operating Income$654.00M
Net Income$486.00M
EPS (Basic)$1.06
EPS (Diluted)$1.06
Shares Outstanding (Basic)457.00M
Shares Outstanding (Diluted)458.00M

Key Highlights

  • 1Total revenues increased by 3% to $9.78 billion for the six months ended June 30, 2025, compared to $9.49 billion in the prior year.
  • 2Net income attributable to GE HealthCare surged by 31% to $1.05 billion for the first six months of 2025, resulting in a diluted EPS of $2.29.
  • 3The Pharmaceutical Diagnostics (PDx) segment showed strong growth, with revenues up 10% year-over-year, significantly boosted by the acquisition of Nihon Medi-Physics Co., Ltd. (NMP).
  • 4Operating income improved by 12% to $1.28 billion for the first six months of 2025, indicating enhanced operational efficiency.
  • 5The company ended the period with a strong cash position of $3.76 billion, underscoring its financial flexibility.
  • 6Despite cost inflation and tariffs impacting gross profit, the company managed operating expenses effectively, leading to improved net income margins.
  • 7GE HealthCare repurchased $100 million of its common stock in the second quarter of 2025 under a new $1 billion share repurchase program.

Frequently Asked Questions

Total revenues increased by 3% to $9.78 billion for the six months ended June 30, 2025. This growth was driven by increases in both product and service sales, with notable strength in the Pharmaceutical Diagnostics (PDx) segment due to the acquisition of Nihon Medi-Physics Co., Ltd. (NMP) and organic growth across multiple segments. Sales of services, in particular, saw a 5% increase due to strong contractual agreements.

The full acquisition of NMP in March 2025 significantly boosted the Pharmaceutical Diagnostics (PDx) segment, contributing to a 10% year-over-year revenue increase for that segment in the first half of 2025. The acquisition also resulted in a significant gain on remeasurement of GE HealthCare's previously held 50% interest in NMP, which positively impacted the 'Other income – net' line item for the six months ended June 30, 2025.

The company acknowledges that cost inflation and tariffs, particularly U.S. and Chinese tariffs, have impacted gross profit. Cost of products sold as a percentage of sales increased due to these factors, alongside investment in new product introductions. Management is taking actions to mitigate these impacts but does not expect to fully offset the additional costs. The company anticipates continued material impact to its financial results from tariffs if they persist.

GE HealthCare maintains a strong liquidity position with $3.76 billion in cash, cash equivalents, and restricted cash as of June 30, 2025. The company also has access to $3.5 billion in revolving credit facilities. Total debt increased to $10.28 billion primarily due to the issuance of senior unsecured notes in Q2 2025 to refinance existing debt. The company believes its current cash, operating cash flow, and credit facilities are sufficient to meet its obligations for at least the next 12 months.