Key facts
- GE HealthCare reported second-quarter net income of $561 million, including $129 million in tariff refunds.
- Quarterly revenue was $5.30 billion, surpassing estimates of $5.26 billion.
- Sales in the imaging and pharmaceutical diagnostics segments saw significant increases.
- The patient care solutions unit experienced a revenue decline of 13.3%.
- GE HealthCare is exploring strategic options for its patient care segment, including a potential sale.
- The company raised its full-year 2025 guidance.
GE HealthCare exceeded Wall Street's second-quarter profit expectations, reporting net income of $561 million, significantly boosted by $129 million in tariff refunds. The company's revenue reached $5.30 billion, surpassing estimates of $5.26 billion, driven by strong demand for its diagnostic and imaging equipment, which saw sales jump 7.9% and 15.6% respectively.
Despite the overall positive performance, GE HealthCare's patient care solutions unit, which sells patient-monitoring and anesthesia-delivery systems, experienced a revenue decline of 13.3% to $675 million, attributed to profitability and supply issues. In response, the company announced it is undertaking a strategic review of this segment, considering options that include continued ownership, a sale, or other value-enhancing transactions to maximize long-term growth and value.
Finance chief Jay Saccaro expressed optimism about supply chain improvements expected in the second half of the year, which should benefit both sales and margins. However, the company's adjusted core margin saw a slight decrease due to inflation in costs for memory chips, oil, and freight, with global geopolitical instability also impacting costs and supply chains. GE HealthCare raised its full-year 2025 guidance, and its shares jumped 12.1% in morning trading following the announcement.