Group 1 - GE HealthCare Technologies reported revenue of $5.01 billion for the quarter ended June 2025, representing a 3.5% increase year-over-year and a surprise of +0.66% over the Zacks Consensus Estimate of $4.97 billion [1] - The earnings per share (EPS) for the quarter was $1.06, compared to $1.00 in the same quarter last year, resulting in an EPS surprise of +16.48% against the consensus estimate of $0.91 [1] - Over the past month, GE HealthCare shares returned +2.3%, while the Zacks S&P 500 composite increased by +3.4%, with the stock currently holding a Zacks Rank 3 (Hold) [3] Group 2 - Revenue from Imaging was $2.2 billion, slightly below the average estimate of $2.21 billion, reflecting a year-over-year decrease of -15.1% [4] - Advanced Visualization Solutions (AVS) generated $1.29 billion, exceeding the estimated $1.27 billion, with a significant year-over-year increase of +56.6% [4] - Revenue from Pharmaceutical Diagnostics (PDx) was $729 million, surpassing the estimated $699.23 million, marking a year-over-year increase of +14.1% [4] - Patient Care Solutions (PCS) reported revenue of $778 million, slightly below the average estimate of $784.09 million, with a year-over-year change of +0.8% [4] - Other revenues were reported at $6 million, significantly lower than the estimated $10.29 million, representing a year-over-year decline of -33.3% [4]

Financial Performance - The company reported revenues of $5 billion in Q2 2025, with organic growth of 2%, at the high end of the expected range [10] - Service revenue grew by 7%, driven by global growth in new and existing customer agreements, while product revenue increased by 2% [10] - Adjusted EBIT margin was 14.6%, down 80 basis points year over year due to tariff impacts, partially offset by lean actions and volume [11] - Adjusted EPS was $1.06 per share, up 6% year over year, including approximately $0.08 impact from tariffs [12] - Free cash flow was $7 million, up $189 million compared to the prior year [12] Business Segment Performance - Imaging segment organic revenue was up 1%, driven by strong execution in EMEA and the U.S., offset by challenges in China [14] - Advanced Visualization Solutions saw organic revenue growth of 2% year over year, with EBIT margin increasing by 20 basis points [15] - Patient Care Solutions had flat organic revenue year over year, with EBIT margin declining by 240 basis points due to inflation and unfavorable portfolio mix [17] - Pharmaceutical Diagnostics delivered 5% organic growth, with EBIT margin declining by 200 basis points due to planned investments and FX headwinds [18] Market Performance - Orders growth was up 3% year over year, with a record backlog of $21.3 billion, up $2.2 billion year over year [11] - The U.S. market is experiencing a robust replacement cycle due to an aging installed base, while Europe shows recovery in capital decision-making [36][40] - China is seeing activity pick up, but the recovery is slower than expected, with a cautious outlook for the second half of the year [84][86] Company Strategy and Industry Competition - The company is focused on its Precision Care strategy, with significant wins in enterprise deals and collaborations [6][7] - The D3 strategy aims to bring world-class solutions to market, leveraging digital and AI technologies [8] - The innovation pipeline includes new product launches expected to drive growth and improve margins [32][110] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about customer investment and operational execution, despite a mixed macroeconomic landscape [10] - The company raised its organic revenue growth guidance for 2025 to approximately 3%, reflecting positive customer sentiment [24] - Tariff impacts are expected to decrease in 2026, with ongoing mitigation actions in place [22][48] Other Important Information - The company announced a share repurchase program of $1 billion and repurchased approximately $100 million of shares in Q2 [20] - The adjusted effective tax rate is expected to be in the range of 20% to 21% for the full year, an improvement from prior guidance [24] Q&A Session Summary Question: Capital environment across different regions - Management noted robust replacement cycles in the U.S. and recovery in Europe, while China is taking longer to recover [36][84] Question: Tariff mitigation actions - The company is implementing no-regret moves and restructuring the supply chain to mitigate tariff impacts [46][48] Question: Order book growth deceleration - Management acknowledged a deceleration in order growth but emphasized the importance of looking at longer-term trends [58][60] Question: Progress with Flurcato and barriers to adoption - Management is pleased with progress and is addressing barriers such as reimbursement cycle times [70][71] Question: China market outlook - Management sees activity picking up in China but is cautious about the pace of recovery [84][86] Question: Guidance for the rest of the year - Management is confident in the second half guidance due to strong order growth and backlog [90][92]

Financial Data and Key Metrics Changes - The company reported revenues of $5 billion in Q2 2025, with organic growth of 2%, at the high end of the expected range [10] - Adjusted EPS was $1.06 per share, up 6% year over year, despite approximately $0.08 impact from tariffs [12] - Free cash flow was $7 million, an increase of $189 million compared to the prior year [12] Business Line Data and Key Metrics Changes - Imaging segment organic revenue grew 1% year over year, driven by strong execution in EMEA and the U.S., but offset by challenges in China [14] - Advanced Visualization Solutions saw organic revenue increase of 2% year over year, with EBIT margin up 20 basis points due to productivity and volume [15] - Patient Care Solutions had flat organic revenue year over year, with growth in Monitoring Solutions offset by declines in Life Support Solutions [16] - Pharmaceutical Diagnostics delivered 5% organic growth, although EBIT margin declined 200 basis points due to planned investments and FX headwinds [18] Market Data and Key Metrics Changes - The U.S. market showed robust demand driven by an aging installed base and new clinical products, while Europe experienced recovery in capital decisions [40][41] - Emerging markets, particularly Indonesia and Latin America, showed positive activity, while the recovery in China is taking longer than expected [42] Company Strategy and Development Direction - The company is focused on its Precision Care strategy, with significant wins in enterprise deals and collaborations, including a $90 million deal with Ascension [7][8] - The D3 strategy aims to bring world-class solutions to market, leveraging digital and AI technologies [8] - The company is optimistic about future growth, driven by customer investment and operational execution [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding customer investment and operational execution, despite a mixed macroeconomic landscape [9] - The company raised its organic revenue growth guidance for 2025 to approximately 3%, reflecting positive customer sentiment [24] - Adjusted EBIT margin forecast for the full year is now between 15.2% and 15.4%, an increase from previous guidance [25] Other Important Information - The company announced a share repurchase program of $1 billion and repurchased approximately $100 million of its shares in Q2 [20] - The global tariff environment has improved, with the company implementing mitigation actions to reduce tariff impacts [22] Q&A Session Summary Question: Can you talk about the capital environment across different regions, U.S., Europe, and whether China's bottoming? - Management noted robust replacement cycles in the U.S. due to an aging installed base and strong demand for new clinical products, while Europe is recovering from previous pauses in capital decisions [36][40][42] Question: Can you elaborate on the actions the company is taking regarding tariffs? - The company is implementing immediate no-regret moves and longer-term restructuring of the supply chain to mitigate tariff impacts [46][49] Question: What are the drivers behind the order growth deceleration in Q2? - Management acknowledged that while Q2 order growth was 3%, it was below Q1 expectations, but emphasized the importance of looking at longer-term trends rather than quarterly fluctuations [56][58] Question: What feedback are you hearing from customers regarding Flurcato? - Management reported positive feedback on image quality and progress in expanding manufacturing capabilities, with a focus on improving reimbursement cycle times [64][70] Question: How should we think about the cadence for the rest of the year? - Management expressed confidence in the second half of the year, supported by strong order growth and backlog, with expectations for a stronger fourth quarter [88][90]

Company Performance - GE HealthCare Technologies (GEHC) reported quarterly earnings of $1.06 per share, exceeding the Zacks Consensus Estimate of $0.91 per share, and showing an increase from $1 per share a year ago, resulting in an earnings surprise of +16.48% [1] - The company posted revenues of $5.01 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.66%, and up from $4.84 billion year-over-year [2] - Over the last four quarters, GE HealthCare has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - GE HealthCare shares have declined approximately 0.6% since the beginning of the year, while the S&P 500 has gained 8.3% [3] - The company's current Zacks Rank is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.94 on revenues of $5.02 billion, and for the current fiscal year, it is $4.02 on revenues of $20.31 billion [7] Industry Context - The Medical - Products industry, to which GE HealthCare belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact GE HealthCare's stock performance [5]

Financial Performance - Q2 2025 - Revenues reached $5 billion with 2% organic growth[10] - Organic orders grew by 3% year-over-year[10] - Adjusted EBIT was $729 million with a 14.6% margin, a decrease of 80 bps year-over-year[10] - Adjusted EPS was $1.06, a 6% increase year-over-year[10] - Free cash flow was $7 million, an increase of $189 million year-over-year[10] Segment Results - Q2 2025 - Imaging revenues were $2.204 billion, with organic revenue growth of 1%[16] - Advanced Visualization Solutions (AVS) revenues were $1.289 billion, with organic revenue growth of 2%[20] - Patient Care Solutions (PCS) revenues were $778 million, with organic revenue flat at 0%[24] - Pharmaceutical Diagnostics (PDx) revenues were $729 million, with organic revenue growth of 5%[29] Outlook and Tariffs - The company is raising its 2025 Adjusted EPS guidance to $4.43 - $4.63[9, 40] - The company expects a net tariff impact of approximately $265 million, or ~$0.45 per share[40] - The company has mitigated approximately 50% of gross tariffs[39] - The company is updating its 2025 organic revenue growth outlook to ~3%[44] - The company is updating its 2025 Adjusted EBIT Margin to 15.2% - 15.4%[44] - The company is updating its 2025 Free Cash Flow to at least $1.4 billion[44]

Core Insights - GE Healthcare reported a 3% year-over-year revenue growth, reaching $5 billion for Q2 2025 [1] - The net profit for the quarter was $486 million, compared to $428 million in the same period last year [1] - Adjusted earnings per share (EPS) increased to $1.06, up from $0.93 in the previous year [1]

Financial Performance - Total revenues for the three months ended June 30, 2025, were $5,007 million, representing a 3% increase year-over-year, with organic growth of 2%[181] - Net income attributable to GE HealthCare for the six months ended June 30, 2025, was $1,049 million, compared to $802 million for the same period in 2024, reflecting a 31% increase[180] - Operating income for the three months ended June 30, 2025, was $654 million, up from $608 million in the same period of 2024, marking an increase of 8%[180] - Total revenues for the six months ended June 30, 2025, were $9,784 million, growing 3% or $295 million, primarily driven by a 5% increase in sales of services[184] - Net income attributable to GE HealthCare for the six months was $1,049 million, an increase of 31% compared to the previous year[185] - Adjusted EBIT for the six months was $1,443 million, reflecting a 1% increase year-over-year, with an adjusted EBIT margin of 14.8%[185] - Operating income for the six months ended June 30, 2025, was $1,283 million, an increase of 12% compared to the previous year[189] - Total revenues for the three months ended June 30, 2025, were $5,007 million, a 3% increase from $4,839 million in 2024[203] - Net income attributable to GE HealthCare for the three months ended June 30, 2025, was $486 million, a 13% increase from $428 million in 2024[209] - Adjusted earnings per share for the three months ended June 30, 2025, was $1.06, an increase of $0.06 from $1.00 in 2024[211] Revenue Segments - Sales of services increased by 7% or $111 million, primarily driven by growth in new and existing customer contractual agreements[183] - The Imaging segment reported revenues of $2,204 million for the three months ended June 30, 2025, a 2% increase from $2,171 million in 2024[181] - The Pharmaceutical Diagnostics (PDx) segment saw a significant revenue increase of 14% to $729 million for the three months ended June 30, 2025, compared to $639 million in 2024[181] - Imaging segment revenues for the same period were $2,204 million, growing 2% or $33 million, with growth in EMEA and USCAN regions, offset by pressure in the China market[184] - PDx segment revenues increased by 14% or $90 million to $729 million, driven by the acquisition of Nihon MediPhysics Co., Ltd. and a 5% growth in organic revenue[184] - USCAN revenues for the six months were $4,577 million, growing 6% or $240 million, with growth across all segments[184] - EMEA revenues increased by 3% to $2,442 million, largely due to growth in Imaging revenues[184] Costs and Expenses - The cost of products sold for the three months ended June 30, 2025, was $2,160 million, compared to $2,045 million in 2024, indicating a 6% increase[180] - Gross profit decreased by $17 million, primarily due to increased costs of products sold and services sold as a percentage of total revenues[189] - Total operating expenses decreased by $63 million, driven by a reduction in R&D and SG&A expenses[189] Cash Flow and Investments - Free cash flow for the six months ended June 30, 2025, was $106 million, reflecting a 15% increase from $92 million in 2024, driven by cash from operating activities of $344 million[216][227] - Cash generated from operating activities for the six months ended June 30, 2025, was $344 million, up 15% from $300 million in 2024, with net income of $1,088 million[219][220] - Cash used for investing activities in the six months ended June 30, 2025, was $630 million, primarily for business acquisitions totaling $279 million and capital expenditures of $238 million[221][222] - Cash generated from financing activities for the six months ended June 30, 2025, was $1,075 million, including net proceeds from the issuance of senior unsecured notes totaling $1,487 million[223] Debt and Liquidity - Total debt as of June 30, 2025, was $10,275 million, an increase from $8,951 million as of December 31, 2024, primarily due to new debt issuance[230] - As of June 30, 2025, the company had $3,763 million in cash, cash equivalents, and restricted cash, along with access to revolving credit facilities totaling $3,500 million[217] Taxation - Adjusted tax expense for the six months ended June 30, 2025, was $235 million, a decrease from $277 million in 2024, with an adjusted effective tax rate of 19.3% compared to 23.7% in 2024[213] - The effective tax rate for the six months ended June 30, 2025, was 16.6%, down from 24.5% in 2024, indicating improved tax efficiency[212] Segment Performance - Imaging Segment EBIT was $188 million, a decrease of $20 million primarily due to cost inflation, including the impacts of incremental tariffs[202] - AVS Segment EBIT was $267 million, an increase of $11 million due to growth in sales volume and cost productivity, largely offset by cost inflation[202] - PDx Segment EBIT was $213 million, an increase of $14 million due to an increase in price and growth in sales volume, partially offset by increased investment[202] Capital Expenditures - Capital expenditures for the six months ended June 30, 2025, were $238 million, focused on manufacturing capacity expansion and new product introductions[228] Credit Rating - The company maintained a stable credit rating with Moody's at Baa2, S&P at BBB, and Fitch at BBB as of July 23, 2025[234]

Chicago, IL – July 30, 2025 – GE HealthCare (Nasdaq: GEHC) today reported financial results for the second quarter ended June 30, 2025. Exhibit 99 GE HealthCare reports second quarter 2025 financial results GE HealthCare President and CEO Peter Arduini said, "We were pleased with solid orders and revenue performance in the second quarter across all segments, reflecting healthy customer investment in capital equipment. We also reported strong earnings performance while leveraging our lean capabilities and de ...

Core Insights - GE HealthCare Technologies Inc. (GEHC) is set to report its second-quarter 2025 results on July 30, with a history of earnings surprises, averaging 8.92% over the last four quarters [1][2] Q2 Estimates - The Zacks Consensus Estimate for revenues is $4.97 billion, indicating a year-over-year growth of 2.8% [2] - The estimated earnings per share (EPS) is $0.91, reflecting a decline of 9% compared to the previous year [2] Segmental Overview - The Imaging segment is crucial for revenue and margin growth, achieving 5% organic revenue growth in Q1, primarily in the U.S., with a 130-basis point EBIT margin expansion [3] - Advanced Visualization Solutions (AVS) reported 3% organic revenue growth in Q1, driven by the U.S. market, with a slight EBIT margin increase of 10 basis points [4] - Patient Care Solutions (PCS) saw 2% organic growth in Q1, but EBIT margin declined by 450 basis points due to tariffs and unfavorable product mix [5] - Pharmaceutical Diagnostics (PDx) excelled with 8% organic revenue growth and maintained an EBIT margin above 32%, bolstered by increased procedure volumes and positive pricing dynamics [6] Other Factors to Note - Tariffs are a significant concern, with an expected adjusted EPS drag of approximately $0.85 for the full year and nearly $100 million impact anticipated in Q2 [7][8] - The company has implemented mitigation strategies but expects ongoing challenges from high-cost inventory [8] - Innovation is a key focus, with the launch of Flyrcado and plans for regulatory submission of a photon-counting CT system later this year [9]

Core Themes - The third China International Supply Chain Promotion Expo (Chain Expo) was held in Beijing, focusing on six major chains including advanced manufacturing, clean energy, smart automotive, digital technology, health living, and green agriculture [1] - Over 650 enterprises and institutions from 75 countries and regions participated, with foreign exhibitors accounting for 35% [1] Company Highlights - Yiling Pharmaceutical showcased its achievements in promoting high-quality development in traditional Chinese medicine (TCM) through solidifying the industrial chain, activating the innovation chain, and extending the health chain [3] - Yiling Pharmaceutical emphasized strict quality control of Chinese medicinal materials, establishing over 60 cultivation bases across the country, which also helps local farmers increase their income [4] - The company presented patented new drugs and innovative products in the health sector, including the Ba Zi Bu Shen capsule, which focuses on anti-aging applications [4] - Yiling Pharmaceutical aims to enhance the internationalization of TCM, with a product distribution map covering over 50 countries and regions [5] Industry Innovations - Guangzhou Pharmaceutical Group, the first TCM company to enter the Fortune Global 500, demonstrated its innovative practices in the TCM supply chain through a digital ecosystem, research innovation, and smart logistics [6] - The group has established nearly 90 standardized planting bases and has implemented blockchain technology for traceability and quality control, achieving a 148% increase in production capacity and a 289% increase in efficiency [6] - Sanofi highlighted its 30 years of localization in China, showcasing its high-quality manufacturing capabilities and a comprehensive immunization service chain [7][8] - GE Healthcare presented its latest high-end medical equipment and announced the establishment of a green supply chain innovation ecosystem alliance to promote sustainable practices in the medical device industry [9] - Steady Medical emphasized its commitment to reducing environmental pollution and introduced a new series of medical beauty products aimed at protecting public health [10]