GE HealthCare Boosts 2025 Profit Forecast Following Strong Q3 Performance

GE HealthCare has raised its 2025 profit guidance following a robust third-quarter performance, driven by strong sales across its core segments. The imaging giant reported total revenues of $5.1 billion for the quarter ended September 30, 2025, up from $4.8 billion in the same period last year.

Imaging and Advanced Visualization Lead Growth

The company's largest segment, imaging devices, saw a 5% increase in revenue to $2.35 billion during the quarter. Advanced visualization solutions contributed significantly, bringing in $1.3 billion. This performance underscores GE HealthCare's continued dominance in the medical imaging market and its successful focus on innovative visualization technologies.

Pharmaceutical diagnostics also performed well, with sales reaching $749 million. However, patient care solutions experienced a 6% decline, dropping to $731 million for the period.

Adjusted Profit Forecast and Tariff Challenges

In response to the stronger-than-expected quarter, GE HealthCare has adjusted its 2025 earnings per share profit forecast to between $4.51 and $4.63, up from its previous guidance of $4.43 to $4.63. This optimistic outlook comes despite ongoing challenges from tariffs imposed by the Trump administration, which the company expects will have a $265 million or 45-cents-per-share impact.

Peter Aquino, GE HealthCare's president and CEO, stated in the earnings release, "Revenue performance was driven by imaging, advanced visualization solutions, and pharmaceutical diagnostics, and was ahead of our expectations. As a result of our increased R&D investments, we are entering a new wave of innovation and, coupled with our focus on lean, we expect to accelerate top and bottom line growth."

Tariff Mitigation Strategies

GE HealthCare has been proactive in addressing the tariff challenge. Aquino reported during the earnings call that the company has already mitigated approximately 50% of its 2025 gross exposure to tariffs. The company aims to deliver a lower net tariff impact in 2026 compared to 2025, based on currently enacted tariffs.

Strategies to achieve this goal include:

1. Decreasing shipments between the U.S. and China
2. Focusing on more local-for-local manufacturing across its 43 international sites
3. Increasing the number of products that qualify for exemptions on duties on trade among the U.S., Canada, and Mexico

These efforts demonstrate GE HealthCare's adaptability in the face of changing global trade dynamics and its commitment to maintaining strong financial performance despite external pressures.