# GE HealthCare (GEHC) Q2 2025 Financial Results Summary
**Release Date:** July 30, 2025
GE HealthCare reported its financial results for the second quarter ended June 30, 2025. The company’s performance during this period shows several key highlights:
### Financial Performance Highlights
– **Total Revenues:**
– $5.0 billion, increased by **3%** year-over-year.
– Organic revenue growth was **2%**.
– **Net Income:**
– Increased to $486 million from $428 million in the prior year, representing a **13%** rise.
– Net income margin rose to **9.7%** from **8.9%**, an increase of **80 basis points (bps)**.
– **Adjusted Earnings and Margins:**
– Diluted earnings per share (EPS) were $1.06, up from $0.93, reflecting a **13%** increase.
– Adjusted EPS also increased to $1.06 from $1.00, a growth of **6%**.
– Adjusted EBIT margin decreased to **14.6%** from **15.3%**, down by **80 bps**.
– **Cash Flow:**
– Cash flow from operating activities was $94 million, a significant improvement from $(119) million the previous year.
– Free cash flow amounted to $7 million compared to $(182) million in the prior year, reflecting a turnaround of **104%**.
### Segment Performance Highlights
1. **Imaging:**
– Revenues: $2,204 million, up by **2%** year-over-year.
– EBIT down **10%** to $188 million; EBIT margin decreased by **110 bps** to **8.5%**.
2. **Advanced Visualization Solutions:**
– Revenues: $1,289 million, increased by **3%** year-over-year.
– EBIT rose **4%** to $267 million; EBIT margin improved to **20.7%,** up **20 bps**.
3. **Patient Care Solutions:**
– Revenues: $778 million, slightly increased by **1%**.
– EBIT dropped significantly by **23%** to $60 million; EBIT margin fell to **7.7%**, down **240 bps**.
4. **Pharmaceutical Diagnostics:**
– Revenues: $729 million, showing strong growth at **14%** year-over-year.
– EBIT increased by **7%** to $213 million; EBIT margin decreased by **200 bps** to **29.3%**.
### Operational Highlights
– Total company book-to-bill ratio was **1.07** times, with total company orders increasing by **3%** organically compared to the previous year.
– Strong demand was noted for radiopharmaceutical products, including significant orders for Omni Legend PET systems.
### Dividend and Share Repurchase
– GE HealthCare declared dividends paid to stockholders totaling **$32 million**.
– The company also repurchased **$100 million** worth of common stock during the second quarter.
### Guidance for Full-Year 2025
– The company raised its full-year 2025 guidance:
– Organic revenue growth is now projected to be approximately **3%** year-over-year, up from previous guidance of **2% to 3%**.
– Adjusted EBIT margin is expected between **15.2% and 15.4%**, reflecting a decrease compared to last year’s margins.
– Adjusted EPS guidance ranges from **$4.43 to $4.63**, indicating a revision from previous estimates of **$3.90 to $4.10**.
– Free cash flow expected to be at least **$1.4 billion**, up from earlier projections of **at least $1.2 billion**.
### Summary
GE HealthCare’s Q2 2025 results show a solid revenue performance and operational improvements, despite decreases in certain profitability margins. The company’s strategic initiatives are aimed at enhancing growth in a competitive healthcare landscape.
| (In millions, except per share amounts) | 2025 | 2024 | 2025 | 2024 |
|---|---|---|---|---|
| Sales of products | $3,263 | $3,207 | $6,380 | $6,253 |
| Sales of services | $1,743 | $1,632 | $3,404 | $3,237 |
| Total revenues | $5,007 | $4,839 | $9,784 | $9,489 |
| Cost of products | $2,160 | $2,045 | $4,122 | $4,012 |
| Cost of services | $863 | $792 | $1,665 | $1,574 |
| Gross profit | $1,985 | $2,002 | $3,997 | $3,904 |
| Selling, general, and administrative | $1,029 | $1,067 | $2,069 | $2,105 |
| Research and development | $302 | $327 | $646 | $651 |
| Total operating expenses | $1,331 | $1,395 | $2,714 | $2,756 |
| Operating income | $654 | $608 | $1,283 | $1,148 |
| Interest and other financial charges – net | $113 | $131 | $224 | $254 |
| Non-operating benefit (income) costs | -$73 | -$101 | -$148 | -$204 |
| Other (income) expense – net | $1 | -$1 | -$98 | $8 |
| Income before income taxes | $613 | $578 | $1,304 | $1,090 |
| Benefit (provision) for income taxes | -$113 | -$143 | -$216 | -$267 |
| Net income | $500 | $435 | $1,088 | $823 |
| Net (income) loss attributable to noncontrolling interests | -$14 | -$7 | -$39 | -$21 |
| Net income attributable to GE HealthCare | $486 | $428 | $1,049 | $802 |
| Earnings per share attributable to GE HealthCare: Basic | $1.06 | $0.94 | $2.30 | $1.76 |
| Diluted | $1.06 | $0.93 | $2.29 | $1.75 |
| Weighted-average number of shares outstanding: Basic | 457 | 457 | 457 | 456 |
| Diluted | 458 | 459 | 459 | 459 |
| (In millions, except share and per share amounts) | June 30, 2025 | December 31, 2024 |
|---|---|---|
| Cash, cash equivalents, and restricted cash | $3,763 | $2,889 |
| Receivables – net of allowances of $107 and $103 | $3,562 | $3,566 |
| Inventories | $2,283 | $1,939 |
| Contract and other deferred assets | $1,062 | $974 |
| All other current assets | $638 | $532 |
| Current assets | $11,308 | $9,901 |
| Property, plant, and equipment – net | $2,962 | $2,550 |
| Goodwill | $13,417 | $13,136 |
| Other intangible assets – net | $1,220 | $1,078 |
| Deferred income taxes | $4,517 | $4,474 |
| All other non-current assets | $2,076 | $1,950 |
| Total assets | $35,500 | $33,089 |
| Short-term borrowings | $2,005 | $1,502 |
| Accounts payable | $2,975 | $3,035 |
| Contract liabilities | $1,979 | $1,943 |
| Current compensation and benefits | $1,364 | $1,521 |
| All other current liabilities | $1,426 | $1,552 |
| Current liabilities | $9,748 | $9,553 |
| Long-term borrowings | $8,270 | $7,449 |
| Non-current compensation and benefits | $5,351 | $5,583 |
| Deferred income taxes | $173 | $56 |
| All other non-current liabilities | $2,005 | $1,796 |
| Total liabilities | $25,548 | $24,437 |
| Commitments and contingencies | ||
| Redeemable noncontrolling interests | $220 | $188 |
| Common stock, par value $0.01 per share, 1,000,000,000 shares authorized, 458,275,427 shares issued as of June 30, 2025; 457,246,971 shares issued as of December 31, 2024 | $5 | $5 |
| Treasury stock, at cost, 1,718,413 shares as of June 30, 2025 and 291,053 shares as of December 31, 2024 | -$125 | -$25 |
| Additional paid-in capital | $6,628 | $6,583 |
| Retained earnings | $4,295 | $3,262 |
| Accumulated other comprehensive income (loss) – net | -$1,090 | -$1,379 |
| Total equity attributable to GE HealthCare | $9,712 | $8,446 |
| Noncontrolling interests | $21 | $18 |
| Total equity | $9,733 | $8,464 |
| Total liabilities, redeemable noncontrolling interests, and equity | $35,500 | $33,089 |
