GE HealthCare Technologies (GEHC) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 3% year-over-year to $5.0 billion, with strong U.S. and EMEA performance and continued momentum in precision care and new product launches.

• Net income attributable to shareholders was $486 million, up 13% year-over-year, with net income margin rising to 9.7%.

• Orders and backlog reached record levels, with backlog at $21.3 billion, up $2.2 billion year-over-year and $700 million sequentially.

• Major strategic collaborations included a $90 million deal with Ascension, a $250 million five-year agreement in Europe, and the acquisition of the remaining 50% of Nihon Medi-Physics.

• Over 50% of sales were driven by new product introductions, reflecting successful R&D investments and innovation in AI-enabled medical devices.

Financial highlights

• Q2 2025 revenues were $5.0 billion, up 3% year-over-year, with organic growth of 2%.

• Adjusted EBIT margin was 14.6%, down 80 basis points year-over-year due to tariffs; adjusted EBIT was $729 million.

• Adjusted EPS was $1.06, up 6% year-over-year, including a $0.08 tariff impact.

• Free cash flow was $7 million for Q2 and $106 million for H1 2025, up $189 million year-over-year.

• Book-to-bill ratio was 1.07, with strong order intake across all segments.

Outlook and guidance

• Raised full-year 2025 organic revenue growth guidance to ~3%, with a 50 bps FX tailwind.

• Adjusted EBIT margin forecast increased to 15.2%-15.4% (prior: 14.2%-14.4%).

• Adjusted EPS guidance raised to $4.43-$4.63 (prior: $3.90-$4.10), including a $0.45 tariff impact.

• Free cash flow expected to be at least $1.4 billion for 2025 (prior: $1.2 billion).

• Q3 2025 organic revenue growth expected at 2%-3%; adjusted EPS to decline high single digits year-over-year due to tariffs.