GE HEALTHCARE TECHNOLOGY (NASDAQ:GEHC) Tops Q3 Estimates and Raises Full-Year Guidance

GE HEALTHCARE TECHNOLOGY (NASDAQ:GEHC) delivered a third-quarter financial performance that narrowly surpassed analyst expectations, prompting a measured positive response in the market. The healthcare technology giant reported revenue and earnings that exceeded consensus estimates, while also providing updated full-year guidance that reflects both operational strengths and significant macroeconomic headwinds.

Quarterly Performance Versus Expectations

The company's Q3 2025 results demonstrated steady growth, albeit in a complex operating environment. Revenue came in at $5.14 billion, representing a 5.8% year-over-year increase and slightly exceeding analyst projections of $5.12 billion. On the profitability front, non-GAAP earnings per share of $1.07 edged past the $1.05 estimate.

Key financial highlights from the quarter include:

• Revenue: $5.14 billion (reported) vs. $5.12 billion (estimated)
• Non-GAAP EPS: $1.07 vs. $1.05 (estimated)
• Organic Revenue Growth: 4% year-over-year
• Adjusted EBIT: $761 million, down from $795 million in the prior year

The company's performance was notably impacted by tariff expenses, which management stated reduced both margin and EPS figures. Excluding these tariff impacts, the company indicated that both margin and EPS would have exceeded the prior year's levels.

Market Reaction and Price Action

Following the earnings release, GE HealthCare's stock saw modest gains in pre-market trading, with an increase of approximately 0.2%. This positive momentum builds on recent performance, with the stock having climbed about 4.3% over the past week and 5.7% over the last month. The market's reaction suggests investors viewed the earnings beat and maintained guidance as reassuring signs of the company's ability to navigate current challenges.

Segment Performance and Business Highlights

The quarter revealed a mixed performance across GE HealthCare's business segments, with particular strength in certain areas offset by challenges in others.

• Imaging: Generated $2.35 billion in revenue, up 5% year-over-year
• Advanced Visualization Solutions: Posted $1.30 billion in revenue, a 7% increase
• Patient Care Solutions: Declined 6% to $731 million
• Pharmaceutical Diagnostics: Surged 20% to $749 million

The company also highlighted several recent innovations and commercial achievements, including the signing of a 14-year Care Alliance for advanced imaging solutions, the launch of new AI-powered cardiovascular ultrasound systems, and multiple FDA clearances for new medical imaging technology.

Updated 2025 Guidance and Analyst Expectations

GE HealthCare raised the lower end of its full-year 2025 adjusted EPS guidance while reaffirming other financial metrics. The company now expects adjusted EPS in the range of $4.51 to $4.63, compared to previous guidance of $4.43 to $4.63. This updated outlook includes approximately $265 million in tariff impacts to adjusted EBIT and $0.45 to adjusted EPS.

The company's guidance compares to analyst expectations for full-year sales of $20.86 billion. Other elements of the company's outlook include:

• Organic revenue growth of approximately 3% year-over-year
• Adjusted EBIT margin of 15.2% to 15.4%
• Free cash flow of at least $1.4 billion

For the upcoming fourth quarter, analysts are projecting revenue of $5.73 billion, which the company's full-year guidance trajectory appears to align with, assuming continued execution in a stable demand environment.

For a detailed look at future earnings estimates and historical performance, readers can review the earnings and estimates page for GEHC.

Disclaimer: This article provides financial analysis for informational purposes only and is not intended as investment advice. All investment decisions should be based on your own research, risk tolerance, and financial circumstances.