Key facts
- GE HealthCare exceeded second-quarter profit expectations.
- Strong demand for diagnostic and imaging devices contributed to the results.
- The company received $129 million in tariff refunds.
- GE HealthCare reported revenue of $5.30 billion, slightly above estimates.
- Adjusted earnings per share came in at $1.13, beating the $1.04 consensus.
- The company maintained its full-year profit forecast.
GE HealthCare surpassed Wall Street's profit expectations for the second quarter, benefiting from strong demand for its diagnostic and imaging devices, as well as refunds for tariffs previously imposed by U.S. President Donald Trump. The medical device maker reported net income of $561 million, an increase from $486 million in the prior year, with $129 million of that boost coming from tariff refunds. Companies are seeking repayment of duties that courts found were illegally collected.
Revenue for the three months ending June 30 reached $5.30 billion, slightly exceeding the $5.26 billion estimated by analysts. Sales in the imaging device and pharmaceutical diagnostics segments grew by 7.9% and 15.6%, respectively. Adjusted earnings per share were $1.13, surpassing the consensus estimate of $1.04. Despite inflationary pressures related to memory chips, oil, and freight costs, which lowered the adjusted core margin by 40 basis points year-over-year, GE HealthCare maintained its annual profit forecast.
Global geopolitical instability, including the conflict in the Middle East, adversely impacted costs, supply chains, and logistics during the second quarter, the company stated. Investors are monitoring the medical device sector following a warning from HCA Healthcare about softer demand for surgical procedures and an increase in uninsured patients. However, other companies like Abbott and Intuitive Surgical also reported better-than-expected results, and Johnson & Johnson did not indicate any procedural volume weakness.