by
Gus Iversen, Editor in Chief | August 06, 2025
GE HealthCare reported modest revenue gains for the second quarter of 2025 and raised its full-year guidance, despite mounting pressure from global tariffs and mixed segment-level profitability.
The company recorded $5 billion in revenue for the quarter ended June 30, reflecting a 3% increase year-over-year, or 2% on an organic basis. Net income rose to $486 million, up from $428 million in Q2 2024, while diluted earnings per share reached $1.06, compared to $0.93 in the same period last year. Free cash flow turned positive, coming in at $7 million, up from a loss of $182 million a year ago.
Segment results were mixed. Imaging and patient care solutions posted modest gains in revenue — 2% and 1% respectively — while pharmaceutical diagnostics (PDx) saw the strongest growth, up 14%. However, PDx’s operating margin declined by 200 basis points to 29.3%, largely due to acquisition-related expenses. EBIT margins for imaging and patient care solutions also narrowed, dropping 110 and 240 basis points, respectively.
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Adjusted EBIT stood at $729 million, slightly down from $742 million a year earlier. The company’s adjusted EBIT margin fell 80 basis points to 14.6%, a dip attributed to higher tariffs, though partially offset by productivity gains and volume improvements.
“We were pleased with solid orders and revenue performance in the second quarter across all segments,” president and CEO Peter Arduini said in a statement. “We also reported strong earnings performance while leveraging our lean capabilities and demonstrating progress on tariff mitigation.”
Total orders grew 3% organically, and the book-to-bill ratio stood at 1.07.
Looking ahead, GE HealthCare raised its 2025 outlook. The company now expects organic revenue growth of approximately 3% and adjusted earnings per share in the range of $4.43 to $4.63, up from prior guidance of $3.90 to $4.10. It also raised its free cash flow projection to at least $1.4 billion.
The updated forecast factors-in escalating tariffs, including U.S. import duties on Chinese goods rising to 54% in August.
