GE HealthCare Technologies (GEHC) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2025 results, with revenue and cash flow exceeding expectations, driven by innovation, robust demand in the U.S. and EMEA, and double-digit growth in Pharmaceutical Diagnostics.

• Advanced strategic pillars including precision care, accelerated growth through enterprise deals, and business optimization via the Heartbeat system, which reduced past due backlog by ~25% YoY.

• Launched several new products, including Flyrcado, Vivid Pioneer, and Photonova Spectra, with regulatory timelines on track and positive clinician feedback.

• Announced the planned $2.3B acquisition of Intelerad to enhance digital and SaaS offerings, expected to add $270M in revenue at >30% adjusted EBITDA margin, closing in H1 2026.

• Record backlog and strong book-to-bill ratio, supported by commercial execution and enterprise collaborations.

Financial highlights

• Q4 2025 revenue reached $5.7B, up 4.8% organically year-over-year; product revenue grew 7.9%, service revenue 5.5%.

• Full-year 2025 revenue was $20.6B, with 3.5% organic growth; adjusted EBIT margin 15.3% (down 100 bps), adjusted EPS $4.59 (up 2.2%).

• Adjusted EBIT margin for Q4 was 16.7%, down 200 bps due to $100M tariff impact and mix; adjusted EPS was $1.44, down 0.7% (up 11% excluding tariffs).

• Free cash flow for the year was $1.5B, with 72% conversion; Q4 free cash flow was $916M.

• Tariffs had a negative impact of ~$100M in Q4 and ~$245M for the year, though impacts were better than anticipated.

Outlook and guidance

• 2026 organic revenue growth expected at 3%-4%, with 150 bps FX benefit.

• Adjusted EBIT margin guidance: 15.8%-16.1% (50-80 bps expansion); adjusted EPS expected at $4.95-$5.15 (7.9%-12.3% growth).

• Free cash flow projected at ~$1.7B for 2026 (13% growth).

• Q1 2026 organic revenue growth expected at 2%-3%, with largest tariff impact in Q1.

• Guidance assumes a cautious approach to China, anticipating a decline in that market.