Financial Performance - Organic revenue grew 4% year-over-year, with total revenues of $5.1 billion [9][10] - Adjusted EPS was $1.07, down 6% year-over-year, impacted by approximately $0.16 from tariffs [10][18] - Free cash flow was $483 million, down $168 million year-over-year, primarily due to higher receivables and tariff payments [17] Business Segment Performance - Imaging segment organic revenue increased by 4%, with EBIT margin declining by 260 basis points due to tariff pressures [12] - Advanced Visualization Solutions (AVS) saw organic revenue growth of 6% and EBIT margin increased by 180 basis points [13] - Patient Care Solutions (PCS) experienced a 7% decline in organic revenue due to a product hold, with EBIT margin down 680 basis points [15] - Pharmaceutical Diagnostics (PDx) reported a strong quarter with 10% organic revenue growth, although EBIT margin declined by 150 basis points due to planned investments [16] Market Performance - Strong growth observed in EMEA and the U.S. markets, with robust orders growth of 6% across all segments [4][9] - The company is optimistic about the recovery in the Chinese market, with improvements in tender activity [28][29] Company Strategy and Industry Competition - The company is focused on executing its precision care strategy and has invested over $3 billion in R&D since 2022 [20] - A 14-year care alliance with UC San Diego Health was announced, emphasizing the company's commitment to innovative solutions in cancer care [5] - The planned acquisition of icometrix aims to enhance capabilities in Alzheimer's care, showcasing the company's strategy to integrate digital tools into its offerings [7] Management Commentary on Operating Environment and Future Outlook - Management raised adjusted EPS guidance for the full year, reflecting strong performance and healthy capital investment trends [18] - The company expects to deliver free cash flow of at least $1.4 billion for the full year, despite tariff impacts [18] - Management remains confident in achieving mid-single-digit organic growth in the medium term, supported by ongoing innovation and product launches [31][32] Other Important Information - The company has mitigated approximately 50% of its 2025 gross tariff exposure and aims for a lower net tariff impact in 2026 [8] - The company is preparing to introduce a significant number of new AI-powered products at the upcoming RSNA conference [24] Q&A Session Summary Question: Update on growth in China - Management noted improvements in tender activity and expressed optimism about the long-term potential of the Chinese market [28][29] Question: Revenue growth acceleration and targets - Management confirmed confidence in achieving mid-single-digit organic growth, with expectations that China’s stability will support this goal [30][31] Question: Performance in Q3 and guidance for Q4 - Management reiterated full-year revenue guidance, expecting 3%-4% growth in Q4, with a recovery in PCS contributing to this [37] Question: Flyrcado product ramp-up - Management indicated a slower ramp in 2025 due to prioritizing customer experience, with expectations for significant growth in 2026 and beyond [40][42] Question: Photon counting technology update - Management confirmed plans are on track for photon counting technology, with more details expected at the upcoming RSNA [48][49] Question: Patient Care Solutions performance - Management acknowledged the decline in PCS due to a product hold but expressed confidence in recovery and future growth under new leadership [50][51] Question: Opportunities in electrophysiology - Management highlighted the potential in electrophysiology, particularly in the ASC setting, and emphasized their competitive positioning [56][57]

Financial Performance - Organic revenue grew 4% year over year, with total revenues of $5.1 billion [9][10] - Adjusted EPS was $1.07, down 6% year over year, impacted by approximately $0.16 from tariffs [10][19] - Free cash flow was $483 million, down $168 million year over year, primarily due to higher receivables and tariff payments [18] Business Segment Performance - Imaging segment organic revenue increased by 4%, with a decline in EBIT margin of 260 basis points due to tariff pressures [13] - Advanced Visualization Solutions (AVS) saw organic revenue growth of 6% and EBIT margin increased by 180 basis points [14] - Patient Care Solutions experienced a 7% decline in organic revenue due to a product hold, with EBIT margin down 680 basis points [15][16] - Pharmaceutical Diagnostics reported a strong quarter with 10% organic revenue growth, although EBIT margin declined by 150 basis points due to planned investments [17] Market Performance - Strong performance noted in EMEA and the U.S. markets, with robust orders growth of 6% across all segments [4][9] - The company is optimistic about the recovery in the Chinese market, with improvements in tender activity [29][30] Company Strategy and Industry Competition - The company is focused on executing its precision care strategy and has invested over $3 billion in R&D since 2022 [21][24] - Strategic acquisitions, such as icometrix, are aimed at enhancing product offerings and market position [7] - The company is entering a new wave of innovation, particularly in AI-powered products and solutions [24] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-single-digit organic revenue growth in the medium term, despite challenges [32][34] - The company raised its adjusted EPS guidance for the full year, reflecting strong performance and healthy capital investment trends [19][20] - Management remains focused on operational improvements and mitigating tariff impacts, with a goal of reducing net tariff impact in 2026 [8][12] Other Important Information - The company has a solid backlog of $21.2 billion, indicating strong future revenue potential [9] - Adjusted EBIT margin was 14.8%, down 150 basis points year over year, primarily due to tariff impacts [10][11] Q&A Session Summary Question: Update on growth in China - Management noted improvements in tender activity and expressed optimism about the long-term potential of the Chinese market [29][30] Question: Confirmation of revenue growth targets - Management confirmed confidence in achieving mid-single-digit organic growth, with expectations for 2026 to exceed current growth rates [32][34] Question: Performance of Patient Care Solutions - Management acknowledged the decline due to a product hold but expects recovery in the fourth quarter [50][51] Question: Opportunities in Electrophysiology - Management highlighted the potential for growth in the ASC setting and the company's leadership position in the market [55][57] Question: Transition of R&D to COGS - Management explained the ongoing transition and its impact on gross margins, with expectations for margin expansion in the fourth quarter [59][60]

Financial Performance - The company reported revenues of $5.1 billion, an increase of 4% year over year, driven by strong performance in imaging, AVS, and PDX businesses [8][9] - Adjusted EBIT margin was 14.8%, down 150 basis points year over year, while adjusted EPS was $1.07 per share, down 6% year over year, impacted by approximately $0.16 of tariff effects [9][10] - Free cash flow was $483 million, with a 99% conversion rate, down $168 million year over year due to higher receivables and tariff payments [16][17] Business Segment Performance - Imaging segment organic revenue grew 4% year over year, with a decline in EBIT margin of 260 basis points due to tariff pressures [11] - Advanced Visualization Solutions (AVS) saw organic revenue increase by 6% year over year, with EBIT margin improving by 180 basis points [12] - Patient Care Solutions experienced a 7% decline in organic revenue due to a product hold, with EBIT margin declining by 680 basis points [13][15] - Pharmaceutical Diagnostics reported a strong quarter with sales growing 10% organically, although EBIT margins declined by 150 basis points due to planned investments [16] Market Performance - The company noted robust orders growth of 6% year over year across all segments, with a solid backlog of $21.2 billion [8][9] - Strong performance was particularly noted in EMEA and the U.S., with imaging equipment being a top investment priority for customers [11][12] Company Strategy and Industry Competition - The company is focused on executing its precision care strategy and has increased R&D investments to drive future growth [4][20] - A planned acquisition of icometrix aims to enhance capabilities in Alzheimer's care, integrating digital tools into MR systems [6][20] - The company is committed to innovation, with over $3 billion invested in R&D since 2022, and plans to introduce numerous AI-powered products at RSNA [20][24] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the recovery in the Chinese market and the potential for mid-single-digit growth in the medium term [30][33] - The company raised its adjusted EPS guidance for the full year, expecting to deliver between $4.51 and $4.63 per share [18][24] - Despite challenges from tariffs, management remains confident in achieving long-term growth targets and margin expansion [25][93] Other Important Information - The company has mitigated approximately 50% of its 2025 gross tariff exposure and is on track to reduce net tariff impact in 2026 [7][10] - The company is focused on disciplined capital allocation, with a priority on organic growth and evaluating M&A opportunities [17] Q&A Session Summary Question: Insights on growth in China - Management noted improvements in tender activity and ongoing recovery in the Chinese market, with optimism about long-term potential despite recent challenges [30][31] Question: Revenue growth acceleration and targets - Management confirmed confidence in achieving mid-single-digit organic growth, with expectations that stable conditions in China will support this goal [32][33] Question: Performance in Q3 and revenue guidance - Management reiterated full-year revenue guidance, citing strong performance in Q3 driven by AVS and a healthy capital environment [40][41] Question: Update on Furcato and its ramp-up - Management acknowledged a slower ramp-up for Furcato in 2025, prioritizing customer experience and workflow integration, with expectations for significant growth in 2026 [46][48] Question: Photon counting technology and patient care solutions - Management confirmed that photon counting technology is on track for upcoming announcements, while patient care solutions are expected to recover following a product hold [51][55]

Core Insights - GE HealthCare Technologies (GEHC) reported quarterly earnings of $1.07 per share, exceeding the Zacks Consensus Estimate of $1.05 per share, but down from $1.14 per share a year ago, indicating an earnings surprise of +1.90% [1] - The company achieved revenues of $5.14 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.48% and up from $4.86 billion year-over-year [2] - GE HealthCare has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Financial Performance - The earnings surprise of +16.48% was noted in the previous quarter, where actual earnings were $1.06 compared to an expected $0.91 [1] - The current consensus EPS estimate for the upcoming quarter is $1.41, with projected revenues of $5.6 billion, while the estimate for the current fiscal year is $4.53 on revenues of $20.45 billion [7] Market Position - GE HealthCare shares have increased by approximately 1.6% since the beginning of the year, contrasting with the S&P 500's gain of 17.2% [3] - The Zacks Rank for GE HealthCare is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Medical - Products industry, to which GE HealthCare belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of GE HealthCare's stock may be influenced by the overall outlook for the industry [8]

Financial Performance - 3Q 2025 revenue reached $51 billion, with organic growth of 4%[10] - Organic orders grew by 6% year-over-year, resulting in a book-to-bill ratio of 106x[10] - Adjusted EBIT margin was 148%, a decrease of 150 bps year-over-year, but excluding tariffs, the margin increased by 30 bps year-over-year to 166%[10, 13] - Adjusted EPS was $107, a decrease of 6% year-over-year, impacted by tariffs of approximately $016[10] - Free cash flow was $483 million, a decrease of $168 million year-over-year, impacted by tariff payments of approximately $95 million[10] Segment Results - Imaging revenue was $2349 million, with organic growth of 4%[16] - Advanced Visualization Solutions (AVS) revenue was $1301 million, with organic growth of 6%[21] - Patient Care Solutions (PCS) revenue was $731 million, a decrease of 7% organically[26] - Pharmaceutical Diagnostics (PDx) revenue was $749 million, with organic growth of 10%[31] Outlook - The company reaffirmed its 2025 organic revenue growth outlook of approximately 3%[38] - The company reaffirmed its 2025 Adjusted EBIT Margin outlook of 152%-154%[38] - The company updated its 2025 Adjusted EPS guidance to $451-$463[38] - The company reaffirmed its 2025 Free Cash Flow outlook of at least $14 billion[38]

Core Insights - GE HealthCare Technologies raised its annual adjusted profit forecast due to strong demand for its medical devices in the United States [1] - The company beat estimates for third-quarter results, indicating robust performance in the healthcare sector [1] Financial Performance - The third-quarter results exceeded market expectations, showcasing the effectiveness of GE HealthCare's product offerings [1] - The increase in annual adjusted profit forecast reflects confidence in continued growth and demand for medical devices [1] Market Demand - Strong demand for medical devices in the United States has been a significant driver of the company's performance [1] - The healthcare industry is experiencing a positive trend, benefiting companies like GE HealthCare that focus on innovative medical solutions [1]

Core Viewpoint - GE HealthCare Technologies reported a decline in profit for the third quarter, primarily due to increased costs associated with tariffs [1] Financial Performance - The company's profit fell in the third quarter, indicating a negative impact on financial performance [1] Cost Factors - The added costs of tariffs were highlighted as a significant factor contributing to the profit decline [1]

Revenue Performance - Total revenues for Q3 2025 were $5,143 million, representing a 6% increase year-over-year, with organic growth of 4%[183] - For the nine months ended September 30, 2025, total revenues reached $14,927 million, a 4% increase year-over-year, with organic growth of 3%[184] - The U.S. and Canada region generated $2,358 million in Q3 2025, a 5% increase from the previous year[182] - The EMEA region saw a 10% revenue increase to $1,360 million in Q3 2025[182] - Total revenues for the three months ended September 30, 2025, were $5,143 million, a 6% increase compared to $4,863 million in the same period of 2024[204] Segment Performance - Product sales increased by 5% or $174 million, driven by strong growth in Pharmaceutical Diagnostics (PDx), Imaging, and Advanced Visualization Solutions (AVS)[183] - Service sales grew by 6% or $107 million, primarily due to growth in new and existing customer contractual agreements[183] - Segment revenues for Imaging were $2,349 million in Q3 2025, a 5% increase from Q3 2024[181] - PDx segment revenues increased by 20% to $749 million in Q3 2025, with a 10% organic growth[181] - Imaging segment revenues were $2,349 million, growing 5% or $120 million, driven by growth in the EMEA and USCAN regions[185] - AVS segment revenues were $1,301 million, growing 7% or $84 million, with strength in the U.S. market[185] - PDx segment revenues were $749 million, growing 20% or $124 million, driven by the acquisition of Nihon Medi-Physics Co., Ltd. and an increase in Organic revenue, which grew 10%[185] Income and Profitability - The company reported a net income attributable to GE HealthCare of $446 million for Q3 2025, compared to $470 million in Q3 2024[180] - Operating income for Q3 2025 was $653 million, a decrease from $676 million in Q3 2024[180] - Net income attributable to GE HealthCare for the nine months ended September 30, 2025, was $1,495 million, an increase of 18% compared to the previous year[186] - Adjusted EBIT for the three months ended September 30, 2025, was $761 million, a decrease of 4% compared to the previous year[188] - Gross profit decreased by $36 million or 300 basis points as a percent of Total revenues due to increased costs of products and services sold[190] Expenses and Taxation - Total operating expenses decreased by $13 million, with a decrease in R&D investments of $25 million[190] - Provision for income taxes increased by $11 million primarily due to U.S. and foreign tax law changes[190] - Adjusted tax expense for the nine months ended September 30, 2025, was $(377) million, a decrease from $(401) million in 2024, with an adjusted effective tax rate of 20.2% compared to 21.9% in 2024[214] Cash Flow and Capital Structure - Free cash flow for the nine months ended September 30, 2025, was $589 million, down 21% from $743 million in 2024, with cash from operating activities decreasing by 10% to $937 million[217][226] - Cash and cash equivalents as of September 30, 2025, totaled $4,027 million, with access to revolving credit facilities of $3,500 million[218] - Total debt increased to $10,282 million as of September 30, 2025, from $8,951 million at the end of 2024, primarily due to new senior unsecured notes issued[229] - Cash generated from financing activities for the nine months ended September 30, 2025, was $910 million, including $1,487 million from new senior unsecured notes issuance[224] - Operating activities generated cash of $937 million for the nine months ended September 30, 2025, with net income of $1,552 million[220] Capital Expenditures and Compliance - Capital expenditures for the nine months ended September 30, 2025, were $348 million, primarily for manufacturing capacity expansion and new product introductions[227] - The company maintained compliance with credit facility covenants as of September 30, 2025, including the maximum consolidated net leverage ratio[230] - Credit ratings as of October 22, 2025, were Baa2 from Moody's, BBB from S&P, and BBB from Fitch, all with a stable outlook[233]

Financial Performance - Revenue for Q3 2025 was $5.1 billion, representing a 6% increase year-over-year, with organic revenue growth of 4% driven by EMEA and the U.S.[7] - Net income attributable to GE HealthCare was $446 million, down from $470 million in the prior year, resulting in a net income margin of 8.7%[7] - Diluted earnings per share (EPS) were $0.98, a decrease of $0.05 from the previous year, while adjusted EPS was $1.07, down $0.06 year-over-year[7] - Adjusted net income for Q3 2025 was $490 million, a decrease of 6% from $521 million in Q3 2024; for the nine months ended September 30, 2025, it increased by 3% to $1,441 million from $1,393 million in 2024[33] - The company reported a 18% increase in net income attributable to GE HealthCare for the nine months ended September 30, 2025, reaching $1,495 million compared to $1,272 million in 2024[33] Cash Flow and Investments - Cash flow from operating activities was $593 million, a decrease of $149 million year-over-year, and free cash flow was $483 million, down $168 million year-over-year[7] - Cash from operating activities for continuing operations decreased to $937 million in 2025 from $1,042 million in 2024, reflecting a decline of 10%[18] - Cash flows from investing activities for continuing operations totaled $(778) million in 2025, compared to $(674) million in 2024, indicating increased investment activity[18] - The company issued new debt amounting to $1,494 million in 2025, up from $994 million in 2024, reflecting a strategy to enhance liquidity[18] - Cash, cash equivalents, and restricted cash at the end of the period increased to $4,030 million in 2025 from $3,572 million in 2024[18] Revenue Segments - Imaging segment revenues were $2.349 billion, with a year-over-year growth of 5%, while Pharmaceutical Diagnostics saw a 20% increase in revenues[8] - Organic orders growth was 6%, with growth across all segments, and total company book-to-bill ratio was 1.06 times[6] - Total revenues for the nine months ended September 30, 2025, reached $14,927 million, a 4% increase from $14,353 million in 2024[26] - Organic revenue for the nine months ended September 30, 2025, was $14,792 million, representing a 3% growth compared to $14,349 million in 2024[26] - The company reported a 20% increase in PDx revenues for the three months ended September 30, 2025, reaching $749 million compared to $625 million in 2024[26] Guidance and Future Outlook - The company raised the lower end of its full-year 2025 adjusted EPS guidance range, now expecting adjusted EPS between $4.51 and $4.63[10] - Tariff impacts are estimated to affect adjusted EBIT by approximately $265 million and adjusted EPS by $0.45 for the full year[12] Operational Highlights - The company launched several new products, including CareIntellect for Perinatal and the AI-supported solution for radiation therapy workflow[11] - GE HealthCare announced the intent to acquire icometrix to enhance its neurology portfolio with brain MRI assessment solutions[11] - Non-operating benefit costs for Q3 2025 were $(75) million, compared to $(102) million in Q3 2024[33] - Restructuring costs for Q3 2025 were $31 million, up from $22 million in Q3 2024; for the nine months ended September 30, 2025, restructuring costs totaled $71 million, down from $90 million in 2024[33] Company Recognition and Contact Information - GE HealthCare is recognized as one of the 2025 Fortune World's Most Admired Companies™[49] - Investor Relations contact is Carolynne Borders, reachable at +1-631-662-4317[49] - Media contact is Jennifer Fox, reachable at +1-414-530-3027[49] - The company encourages following its social media channels for the latest news[49] - More information can be found on the official website: https://www.gehealthcare.com[49] Tax and Effective Rates - The effective tax rate for Q3 2025 was 27.8%, compared to 25.5% in Q3 2024; the adjusted effective tax rate was 21.8% for Q3 2025, up from 18.7% in Q3 2024[37]

Core Insights - GE HealthCare reported strong financial results for Q3 2025, with robust order growth across all segments driven by customer demand and a healthy capital equipment environment [2][5][6] Financial Performance - Total revenues reached $5.1 billion, marking a 6% increase year-over-year, with organic revenue growth of 4% [5][6] - Net income attributable to GE HealthCare was $446 million, down from $470 million in the prior year, resulting in a net income margin of 8.7% [6][7] - Diluted earnings per share (EPS) were $0.98, a decrease from $1.02 in the previous year, while adjusted EPS was $1.07 compared to $1.14 [5][6][7] - Cash flow from operating activities was $593 million, down $149 million year-over-year, and free cash flow was $483 million, down $168 million [6][7] Segment Performance - Imaging segment revenues were $2.35 billion, up 5% year-over-year, with organic growth of 4% [7][22] - Advanced Visualization Solutions (AVS) revenues increased by 7% to $1.30 billion, with organic growth of 6% [7][22] - Patient Care Solutions (PCS) revenues decreased by 6% to $731 million, with organic revenue down 7% [7][22] - Pharmaceutical Diagnostics (PDx) revenues surged by 20% to $749 million, with organic growth of 10% [7][22] Guidance and Future Outlook - The company raised the lower end of its full-year 2025 adjusted EPS guidance range and reaffirmed other metrics, anticipating continued growth despite tariff impacts [8] - Tariff assumptions include increases on U.S.-China tariffs and other international tariffs, which are expected to affect financial performance [8] Innovation and Strategic Developments - GE HealthCare announced several strategic initiatives, including a 14-year Care Alliance for advanced imaging solutions and the launch of new AI-supported healthcare applications [9] - The company is focused on enhancing its neurology portfolio through acquisitions and partnerships, including the intent to acquire icometrix [9]