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]

Group 1 - The article highlights the ongoing geopolitical tensions in the Middle East, particularly military actions against the Druze in Syria and ballistic attacks on Israel by the Houthis [1] - Allka Research has over two decades of experience in investment, focusing on uncovering undervalued assets in sectors such as ETFs, commodities, technology, and pharmaceuticals [1] - The company aims to simplify investment strategies, making them accessible for both seasoned and novice investors, while fostering a community of informed investors [1] Group 2 - Allka Research is committed to delivering substantial returns and strategic insights to its clients, emphasizing a conservative investment approach [1] - The company seeks to share its knowledge through Seeking Alpha, contributing analyses and perspectives to empower investors financially [1] - Allka Research's mission includes demystifying investing complexities and inspiring confidence among its readers [1]

Group 1 - The third China International Supply Chain Promotion Expo is ongoing, with over 230 new exhibitors participating alongside returning companies, highlighting its role as an important international platform for maintaining global supply chain stability [1][2] - Companies like Rio Tinto and GE Healthcare are showcasing their collaborative efforts and innovations in supply chain solutions, emphasizing the importance of partnerships in achieving sustainable development and technological advancements [1][2] - The expo aims to foster long-term mutually beneficial cooperation rather than short-term transactions, promoting a collaborative environment among exhibitors [3] Group 2 - New participants such as PwC and Schneider Electric are leveraging the expo to share experiences and seek partnerships, focusing on green supply chain practices and advanced manufacturing solutions [2] - The expo is evolving into a 3.0 version of its "finding friends" model, utilizing big data and AI to enhance business matchmaking and collaboration opportunities [3] - The event emphasizes the importance of resource optimization and collaboration among quality enterprises, regardless of their position in the supply chain [3]

Core Viewpoint - The article highlights the growing maturity of China's medical device supply chain, driven by the participation of multinational companies and the rise of local manufacturers, particularly in high-end products [1][2]. Group 1: Event Overview - The third China International Supply Chain Promotion Expo (Chain Expo) will open on July 16, featuring major multinational medical giants like Medtronic, AstraZeneca, and GE Healthcare [1]. - Medtronic will showcase a new cardiac catheter developed in collaboration with local clinical experts, currently awaiting regulatory approval in China [1]. Group 2: Industry Developments - The article notes that local medical device manufacturers have rapidly emerged, providing alternatives to previously imported solutions for various medical treatments, including cardiovascular implants and surgical robots [1]. - AstraZeneca announced a $2.5 billion investment plan in March to establish its sixth global strategic R&D center in Beijing, further enhancing China's life sciences sector [2]. - GE Healthcare's new products, with 50% of R&D led by Chinese teams, reflect a significant shift towards domestic production, with over 80% of their products being locally sourced [2].

Group 1 - The third China International Supply Chain Promotion Expo will open on July 16, featuring multinational medical giants such as Medtronic, AstraZeneca, and GE Healthcare [1] - Medtronic will showcase a new cardiac pacing catheter developed in collaboration with local clinical experts, currently awaiting approval from domestic regulatory authorities [1] - The development of the medical device supply chain in China has led to the rapid rise of domestic medical device manufacturers, who are now moving towards high-end products [1] Group 2 - AstraZeneca announced a $2.5 billion investment plan in March to establish its sixth global strategic R&D center in Beijing, aiming to advance the life sciences sector in China [2] - GE Healthcare's new products launched at the China International Medical Equipment Fair in the first half of the year had 50% of their development led by Chinese teams, with over 80% being domestically produced [2] - GE Healthcare's global senior vice president will speak at the expo on technological innovation in the global health industry [2]

Investment Rating - The report maintains a "Buy" rating for Boston Scientific (BSX), Edwards Lifesciences (EW), GE Healthcare (GEHC), Intuitive Surgical (ISRG), and Haemonetics (HAE), while downgrading Tandem Diabetes (TNDM) to "Sell/High Risk" from "Neutral/High Risk" [1][5][20]. Core Insights - The MedTech sector has shown resilience against healthcare headwinds, with a focus on returning to fundamentals and several catalysts expected to drive momentum in the second half of 2025 [1][9]. - The S&P Equipment and Supplies Index has outperformed the broader market, with a year-to-date increase of 7.2%, while relative P/E multiples remain below historical averages [2][12]. - Key upcoming catalysts include product launches and data readouts from various companies, which are anticipated to influence stock performance positively [3][10][11]. Summary by Sections Market Overview - The MedTech industry has largely absorbed tariff impacts, with a weakening USD providing additional support [1][9]. - The S&P 500 is up 6.2% year-to-date, while the S&P Equipment and Supplies Index has increased by 7.2% [2][12]. Company-Specific Insights - Boston Scientific (BSX) is expected to benefit from Farapulse and new product launches, projecting a revenue increase of 80.1% year-over-year in 2Q25 [3][10]. - Edwards Lifesciences (EW) anticipates pivotal data releases and the reopening of TAVR NCD, which could enhance its market position [3][10]. - Intuitive Surgical (ISRG) plans a broad launch of its DV5 system, which is expected to drive stock performance [4][10]. - Haemonetics (HAE) has been upgraded to "Buy" due to improved guidance and revenue growth expectations [5][20]. - Tandem Diabetes (TNDM) faces competitive pressures, leading to its downgrade to "Sell/High Risk" [5][20]. Valuation and Target Prices - Target prices have been adjusted for several companies, with BSX at $125, EW at $95, GEHC at $86, and ISRG at $650 [20][21]. - The report highlights that the relative P/E multiple for the MedTech sector is currently at 1.14x, below historical averages, indicating potential undervaluation [2][12][14].