GE Healthcare (GEHC, Financial) anticipates its second-quarter revenue to fall short of its first-quarter performance. The company predicts achieving mid-single-digit growth for the first half of the year. These insights were shared during the Bank of America 2025 Healthcare Conference.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for GE HealthCare Technologies Inc (GEHC, Financial) is $87.52 with a high estimate of $106.00 and a low estimate of $73.00. The average target implies an upside of 16.93% from the current price of $74.85. More detailed estimate data can be found on the GE HealthCare Technologies Inc (GEHC) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, GE HealthCare Technologies Inc's (GEHC, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
GEHC Key Business Developments
Release Date: April 30, 2025
- Revenue: $4.8 billion with 4% organic growth.
- Adjusted EBIT Margin: 15%, up 30 basis points year over year.
- Adjusted EPS: $1.01, up 12% year over year.
- Free Cash Flow: $98 million, down $175 million from the previous year.
- Organic Orders Growth: 10% year over year.
- Backlog: $20.6 billion, up $1.9 billion year over year.
- Service Revenue Growth: 3% on a reported basis.
- Product Revenue Growth: 2% on a reported basis.
- Imaging Segment Organic Revenue: Up 5% year over year.
- Advanced Visualization Solutions Organic Revenue: Up 3% year over year.
- Patient Care Solutions Organic Revenue Growth: Up 2% year over year.
- Pharmaceutical Diagnostics Organic Growth: 8% year over year with EBIT margin above 32%.
- R&D Investment: 7% of sales, increasing 6% year over year.
- Debt Repayment: $250 million in the first quarter of 2025.
- Share Repurchase Program: $1 billion authorization announced.
- Full Year 2025 Organic Revenue Growth Guidance: 2% to 3%.
- Full Year 2025 Adjusted EBIT Margin Guidance: 14.2% to 14.4%.
- Full Year 2025 Adjusted EPS Guidance: $3.90 to $4.10.
- Full Year 2025 Free Cash Flow Guidance: At least $1.2 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- GE HealthCare Technologies Inc (GEHC, Financial) reported strong revenue and profit growth in the first quarter of 2025, exceeding expectations.
- The company achieved record double-digit orders growth, particularly driven by the US market with a focus on cardiology and oncology imaging products.
- GEHC delivered a robust organic orders growth of 10% year over year, the highest since its spin-off, reflecting healthy market demand.
- The company reported an adjusted EBIT margin of 15%, up 30 basis points year over year, due to volume and productivity improvements.
- GEHC announced a $1 billion share repurchase program, demonstrating confidence in its financial position and commitment to returning cash to shareholders.
Negative Points
- GEHC adjusted its 2025 guidance due to the estimated impact of tariffs on profit and cash, with a significant $0.85 per share impact expected.
- The company expects a decline in adjusted EPS for the full year 2025, representing a 9% to 13% decrease year over year.
- Free cash flow guidance for 2025 was lowered to at least $1.2 billion, down from the previous expectation of at least $1.75 billion, primarily due to tariff payments.
- The adjusted EBIT margin forecast for the full year was reduced to a range of 14.2% to 14.4%, down from the previous guidance of 16.7% to 16.8%.
- GEHC anticipates a low single-digit decline in China's sales performance for 2025, with negative performance expected in the first half of the year.
