Aufrufe: 88
GE HealthCare reports fourth quarter and full year 2025 financial results
GE HealthCare President and CEO Peter Arduini said, “In our third year as a public company, we’ve made great strides executing our strategy focused on precision care, growth acceleration, and business optimization. We delivered a strong quarter and year with growth in Pharmaceutical Diagnostics, Imaging, and Advanced Visualization Solutions. This reflects healthy capital investment trends, commercial execution and demand for new products.
“We advanced Heartbeat, our proprietary business system, to improve the customer experience and drive productivity to deliver margin expansion, and greater value for patients, customers and shareholders. We entered 2026 with momentum driven by a differentiated innovation pipeline. While the macro environment remains dynamic, we are focused on delivering profitable growth, strong cash flow, and shareholder value.”
Fourth quarter 2025 total company financial performance(1)
- Revenues of $5.7 billion, up 7.1%, including Organic revenue growth* of 4.8%, driven by Pharmaceutical Diagnostics (PDx), Imaging, and AVS, with overall strength in U.S. and EMEA.
- Total orders up 2.0% organically and book-to-bill of 1.06 times.
- Net income attributable to GE HealthCare of $589 million versus $720 million, and Adjusted EBIT* of $950 million versus $994 million.
- Net income margin of 10.3% versus 13.5%, down 320 basis points (bps); Adjusted EBIT margin* of 16.7% versus 18.7%, down 200 bps, with both measures negatively impacted by tariff expense and unfavorable mix, partially offset by volume and price.
- Diluted EPS of $1.29 versus $1.57, down $0.28; Adjusted EPS* of $1.44 versus $1.45, down $0.01, with both measures negatively impacted by tariff expense.
| Fourth quarter 2025 segment financial performance (Unaudited) | ||||
| Segment ($ in millions) | Imaging | Advanced Visualization Solutions | Patient Care Solutions | Pharmaceutical Diagnostics |
| Segment Revenues | $2,552 | $1,525 | $825 | $790 |
| YoY % change | 6.6% | 5.9% | (0.3)% | 22.3% |
| YoY % Organic* change | 5.3% | 4.2% | (1.1)% | 12.7% |
| Segment EBIT | $264 | $376 | $74 | $234 |
| YoY % change | (12.5)% | 0.7% | (29.6)% | 10.0% |
| Segment EBIT Margin | 10.4% | 24.7% | 9.0% | 29.6% |
| YoY change | (230) bps | (130) bps | (380) bps | (330) bps |
| YoY refers to year-over-year comparison | ||||
Full year 2025 total company financial performance(1)
- Revenues of $20.6 billion, up 4.8%, including Organic revenue growth* of 3.5%; revenue growth exceeded expectations and was driven by growth in Imaging, PDx, and AVS with strength in U.S. and EMEA.
- Total orders up 5.2% organically and book-to-bill of 1.07 times.
- Net income attributable to GE HealthCare of $2.1 billion versus $2.0 billion, and Adjusted EBIT* of $3.2 billion versus $3.2 billion.
- Net income margin of 10.1%, flat, and Adjusted EBIT margin* of 15.3% versus 16.3%, down 100 bps. Excluding tariff impacts, margin exceeded prior year.
- Diluted EPS of $4.55 versus $4.34, up $0.21. Adjusted EPS* of $4.59 versus $4.49, up $0.10.
GE HealthCare Vice President and CFO Jay Saccaro commented, “We ended 2025 in a position of strength with record backlog. We significantly mitigated gross tariff impacts, demonstrating operational resilience. We also returned capital to shareholders through share repurchases and our dividend. Our robust balance sheet and strong cash flow support our growth ambitions, which include both organic and inorganic investment. As we look ahead, we are committed to executing on our strategy to drive top- and bottom-line growth in 2026 and over the medium-term.”
Capital deployment(1)
- In the fourth quarter, cash flow from operating activities of $1.0 billion, up $137 million. Free cash flow* of $916 million, up $105 million. For the full year, cash flow from operating activities of $2.0 billion, up $32 million and Free cash flow* of $1.5 billion, down $49 million. The annual decrease was due to tariff impact, offset by lower interest and income taxes paid. Cash flow conversion of 95%, and Free cash flow conversion* of 72%.
- Capital expenditures(2) in the fourth quarter of $134 million compared to $102 million in 2024. For the full year 2025, capital expenditures(2) of $482 million compared to $401 million in 2024. We continue to prioritize investment in innovation and capacity expansion.
- In April 2025, the Board of Directors authorized a $1.0 billion share repurchase program with no end date. In 2025, the Company repurchased 2.8 million shares for total consideration of $200 million.
- In 2025, the Company closed the acquisitions of Nihon Medi-Physics and icometrix. During the fourth quarter, the Company announced the planned $2.3 billion acquisition of Intelerad. The addition of Intelerad will offer a compelling return profile and will advance our cloud-enabled enterprise imaging across care settings. The Company expects to close the acquisition in the first half of 2026, subject to regulatory approvals.
- As of December 31, 2025, cash and cash equivalents totaled $4.5 billion and the Company had access to $3.5 billion of revolving credit facilities. Total debt outstanding was $10.0 billion.
- Declared quarterly dividend of $0.035 per share to stockholders of record for all quarters in 2025.
| * Non-GAAP financial measure. |
| (1) All comparisons to prior year period unless otherwise noted. |
| (2) Capital Expenditures represent Additions to property, plant and equipment and internal-use software as disclosed on the Consolidated Statements of Cash Flows |
Recent innovation and commercial highlights
- GE HealthCare announces U.S. FDA 510(k) clearance and CE Mark for Allia Moveo and marks first global installation, advancing precision care in the interventional suite
- GE HealthCare and Indonesia’s Ministry of Health to expand access to quality care through the provision of 300+ advanced CT scanners
- GE HealthCare and Mayo Clinic unveil GEMINI-RT: A bold research collaboration in radiation therapy and advanced cancer care
- University of Rochester Medical Center and GE HealthCare form seven-year Care Alliance to build advanced capabilities across system
- GE HealthCare unveils next-generation SIGNA MRI technology, aiming to boost efficiency, enhance patient experience, and advance sustainability
- GE HealthCare announces CE Mark for the Omni 128cm total body PET/CT system
- GE HealthCare introduces Genesis™ Radiology Workspace: a cloud-first solution with a goal for smarter, faster diagnosis
- GE HealthCare’s Photonova™ Spectra with Deep Silicon reimagines photon-counting CT to see more, know more and achieve more
- GE HealthCare to acquire Intelerad, advancing cloud-enabled enterprise imaging across care settings
- GE HealthCare announces Flyrcado milestone: Strong pilot results drive broader rollout at CVAUSA
2026 guidance
Today, the Company introduces 2026 full-year guidance metrics as follows:
- Organic revenue growth* of 3.0% to 4.0% year-over-year
- Adjusted EBIT margin* of 15.8% to 16.1%, reflecting an expansion of 50 bps to 80 bps year-over-year
- Adjusted effective tax rate (ETR)* in the range of 20.0% to 21.0%
- Adjusted EPS* in the range of $4.95 to $5.15, representing 7.9% to 12.3% growth year-over-year
- Free cash flow* of approximately $1.7 billion
- Expect 2026 tariff impact to be lower than 2025, based on current rates
The Company provides its outlook on a non-GAAP basis. Refer to the Non-GAAP financial measures in outlook section below for more details.
| * Non-GAAP financial measure. |
Financial rounding
Certain columns and rows in this document may not sum due to the use of rounded numbers. Percentages presented are calculated from the underlying whole-dollar amounts.
Financial statements
| Consolidated Statements of Income | ||||||
| For the three months ended | ||||||
|
| December 31 | |||||
| (In millions, except per share amounts) | 2025 |
| 2024 | |||
| Sales of products | 3,906 |
| 3,621 |
| ||
| Sales of services |
| 1,792 |
|
| 1,698 |
|
| Total revenues |
| 5,698 |
|
| 5,319 |
|
| Cost of products |
| 2,550 |
|
| 2,226 |
|
| Cost of services |
| 887 |
|
| 818 |
|
| Gross profit |
| 2,261 |
|
| 2,275 |
|
| Selling, general, and administrative |
| 1,111 |
|
| 1,130 |
|
| Research and development |
| 323 |
|
| 344 |
|
| Total operating expenses |
| 1,434 |
|
| 1,474 |
|
| Operating income |
| 827 |
|
| 801 |
|
| Interest and other financial charges – net |
| 105 |
|
| 121 |
|
| Non-operating benefit (income) costs |
| (66 |
| (100 | ||
| Other (income) expense – net |
| (33 |
| (53 | ||
| Income before income taxes |
| 820 |
|
| 834 |
|
| Benefit (provision) for income taxes |
| (219 |
| (96 | ||
| Net income |
| 602 |
|
| 737 |
|
| Net (income) loss attributable to noncontrolling interests |
| (13 |
| (17 | ||
| Net income attributable to GE HealthCare | $ | 589 |
| $ | 720 |
|
|
|
|
| ||||
| Earnings per share attributable to GE HealthCare: |
|
| ||||
| Basic | 1.29 |
| 1.58 |
| ||
| Diluted |
| 1.29 |
|
| 1.57 |
|
| Weighted-average number of shares outstanding: |
|
| ||||
| Basic |
| 456 |
|
| 457 |
|
| Diluted |
| 457 |
|
| 459 |
|
| Consolidated Statements of Income |
|
| |||||||
| For the years ended | |||||||||
|
| December 31 | ||||||||
| (In millions, except per share amounts) | 2025 | 2024 | 2023 | ||||||
| Sales of products | 13,661 |
| 13,075 |
| 13,127 |
| |||
| Sales of services |
| 6,964 |
|
| 6,597 |
|
| 6,425 |
|
| Total revenues |
| 20,625 |
|
| 19,672 |
|
| 19,552 |
|
| Cost of products |
| 8,942 |
|
| 8,271 |
|
| 8,465 |
|
| Cost of services |
| 3,436 |
|
| 3,196 |
|
| 3,165 |
|
| Gross profit |
| 8,248 |
|
| 8,205 |
|
| 7,922 |
|
| Selling, general, and administrative |
| 4,225 |
|
| 4,269 |
|
| 4,282 |
|
| Research and development |
| 1,260 |
|
| 1,311 |
|
| 1,205 |
|
| Total operating expenses |
| 5,485 |
|
| 5,580 |
|
| 5,487 |
|
| Operating income |
| 2,763 |
|
| 2,625 |
|
| 2,435 |
|
| Interest and other financial charges – net |
| 440 |
|
| 504 |
|
| 542 |
|
| Non-operating benefit (income) costs |
| (288 |
| (406 |
| (382 | |||
| Other (income) expense – net |
| (157 |
| (55 |
| (86 | |||
| Income from continuing operations before income taxes |
| 2,768 |
|
| 2,581 |
|
| 2,361 |
|
| Benefit (provision) for income taxes |
| (614 |
| (531 |
| (743 | |||
| Net income from continuing operations |
| 2,154 |
|
| 2,050 |
|
| 1,618 |
|
| Income (loss) from discontinued operations, net of taxes |
| — |
|
| — |
|
| (4 | |
| Net income |
| 2,154 |
|
| 2,050 |
|
| 1,614 |
|
| Net (income) loss attributable to noncontrolling interests |
| (70 |
| (57 |
| (46 | |||
| Net income attributable to GE HealthCare |
| 2,084 |
|
| 1,993 |
|
| 1,568 |
|
| Deemed preferred stock dividend of redeemable noncontrolling interest |
| — |
|
| — |
|
| (183 | |
| Net income attributable to GE HealthCare common stockholders | $ | 2,084 |
| $ | 1,993 |
| $ | 1,385 |
|
|
|
|
|
| ||||||
| Earnings per share from continuing operations attributable to GE HealthCare common stockholders: |
|
|
| ||||||
| Basic | 4.56 |
| 4.37 |
| 3.06 |
| |||
| Diluted |
| 4.55 |
|
| 4.34 |
|
| 3.04 |
|
| Earnings per share attributable to GE HealthCare common stockholders: |
|
|
| ||||||
| Basic | 4.56 |
| 4.37 |
| 3.05 |
| |||
| Diluted |
| 4.55 |
|
| 4.34 |
|
| 3.03 |
|
| Weighted-average number of shares outstanding: |
|
|
| ||||||
| Basic |
| 456 |
|
| 456 |
|
| 455 |
|
| Diluted |
| 458 |
|
| 459 |
|
| 458 |
|
| Consolidated Statements of Financial Position |
| |||||
|
| As of | |||||
| December 31, | December 31, | |||||
| (In millions, except share and per share amounts) | 2025 | 2024 | ||||
| Cash, cash equivalents, and restricted cash | 4,512 |
| 2,889 |
| ||
| Receivables – net of allowances of $103 and $103 |
| 3,955 |
|
| 3,566 |
|
| Inventories |
| 2,234 |
|
| 1,939 |
|
| Contract and other deferred assets |
| 1,073 |
|
| 974 |
|
| All other current assets |
| 726 |
|
| 532 |
|
| Current assets |
| 12,501 |
|
| 9,901 |
|
| Property, plant, and equipment – net |
| 3,092 |
|
| 2,550 |
|
| Goodwill |
| 13,489 |
|
| 13,136 |
|
| Other intangible assets – net |
| 1,130 |
|
| 1,078 |
|
| Deferred income taxes |
| 4,491 |
|
| 4,474 |
|
| All other non-current assets |
| 2,205 |
|
| 1,950 |
|
| Total assets | $ | 36,906 |
| $ | 33,089 |
|
| Short-term borrowings | 508 |
| 1,502 |
| ||
| Accounts payable |
| 3,250 |
|
| 3,035 |
|
| Contract liabilities |
| 2,095 |
|
| 1,943 |
|
| Current compensation and benefits |
| 1,666 |
|
| 1,521 |
|
| All other current liabilities |
| 1,587 |
|
| 1,552 |
|
| Current liabilities |
| 9,105 |
|
| 9,553 |
|
| Long-term borrowings |
| 9,495 |
|
| 7,449 |
|
| Non-current compensation and benefits |
| 5,453 |
|
| 5,583 |
|
| Deferred income taxes |
| 193 |
|
| 56 |
|
| All other non-current liabilities |
| 2,061 |
|
| 1,796 |
|
| Total liabilities |
| 26,307 |
|
| 24,437 |
|
| Commitments and contingencies |
|
| ||||
| Redeemable noncontrolling interests |
| 209 |
|
| 188 |
|
| Common stock, par value $0.01 per share, 1,000,000,000 shares authorized, 458,844,209 shares issued as of December 31, 2025; 457,246,971 shares issued as of December 31, 2024 |
| 5 |
|
| 5 |
|
| Treasury stock, at cost, 3,107,626 shares as of December 31, 2025 and 291,053 shares as of December 31, 2024 |
| (225 |
| (25 | ||
| Additional paid-in capital |
| 6,707 |
|
| 6,583 |
|
| Retained earnings |
| 5,281 |
|
| 3,262 |
|
| Accumulated other comprehensive income (loss) – net |
| (1,388 |
| (1,379 | ||
| Total equity attributable to GE HealthCare |
| 10,379 |
|
| 8,446 |
|
| Noncontrolling interests |
| 11 |
|
| 18 |
|
| Total equity |
| 10,390 |
|
| 8,464 |
|
| Total liabilities, redeemable noncontrolling interests, and equity | $ | 36,906 |
| $ | 33,089 |
|
| Consolidated Statements of Cash Flows |
|
|
| ||||||
| For the years ended | |||||||||
|
| December 31 | ||||||||
| (In millions) | 2025 | 2024 | 2023 | ||||||
| Net income | $ | 2,154 |
| $ | 2,050 |
| $ | 1,614 |
|
| Less: Income (loss) from discontinued operations, net of taxes |
| — |
|
| — |
|
| (4 | |
| Net income from continuing operations |
| 2,154 |
|
| 2,050 |
|
| 1,618 |
|
| Adjustments to reconcile Net income to Cash from (used for) operating activities – continuing operations: |
|
|
| ||||||
| Depreciation of property, plant, and equipment |
| 287 |
|
| 268 |
|
| 248 |
|
| Amortization of intangible assets |
| 291 |
|
| 312 |
|
| 362 |
|
| Gain on remeasurement of Nihon Medi-Physics equity method investment |
| (97 |
| — |
|
| — |
| |
| Net periodic postretirement benefit plan (income) expense |
| (267 |
| (357 |
| (332 | |||
| Postretirement plan contributions |
| (338 |
| (332 |
| (357 | |||
| Share-based compensation |
| 130 |
|
| 125 |
|
| 114 |
|
| Provision for income taxes |
| 614 |
|
| 531 |
|
| 743 |
|
| Cash paid during the year for income taxes |
| (429 |
| (491 |
| (474 | |||
| Changes in operating assets and liabilities, excluding the effects of acquisitions: |
|
|
| ||||||
| Receivables |
| (216 |
| (157 |
| (173 | |||
| Inventories |
| (142 |
| (81 |
| 111 |
| ||
| Contract and other deferred assets |
| (60 |
| 3 |
|
| 10 |
| |
| Accounts payable |
| 90 |
|
| 60 |
|
| (100 | |
| Contract liabilities |
| 81 |
|
| 68 |
|
| 26 |
|
| Current compensation and benefits |
| 94 |
|
| 39 |
|
| 153 |
|
| All other operating activities – net |
| (204 |
| (83 |
| 151 |
| ||
| Cash from (used for) operating activities – continuing operations |
| 1,987 |
|
| 1,955 |
|
| 2,101 |
|
| Cash flows – investing activities |
|
|
| ||||||
| Additions to property, plant and equipment and internal-use software |
| (482 |
| (401 |
| (387 | |||
| Dispositions of property, plant, and equipment |
| — |
|
| — |
|
| 1 |
|
| Purchases of businesses, net of cash acquired |
| (378 |
| (313 |
| (147 | |||
| Purchases of investments |
| (118 |
| (40 |
| (48 | |||
| All other investing activities – net |
| (69 |
| (160 |
| 23 |
| ||
| Cash from (used for) investing activities – continuing operations |
| (1,047 | ) |
| (914 | ) |
| (558 | ) |
| Cash flows – financing activities |
|
|
| ||||||
| Net increase (decrease) in borrowings (maturities of 90 days or less) |
| 1 |
|
| — |
|
| (12 | |
| Newly issued debt, net of debt issuance costs (maturities longer than 90 days) |
| 2,734 |
|
| 995 |
|
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