GE HealthCare Q3 Earnings and Revenues Beat Estimates, Net Margin Falls

GE HealthCare GEHC reported third-quarter 2025 adjusted earnings per share (EPS) of $1.07, which beat the Zacks Consensus Estimate of $1.05 by 1.9%. However, the bottom line declined 6.1% year over year.GAAP EPS in the quarter was 98 cents, down 3.9% from the year-ago level.Revenue DetailsRevenues of $5.14 billion were up 6% year over year on a reported basis and 4% organically. The top line beat the Zacks Consensus Estimate by 1.4%. Total company orders increased 6% organically year over year.Revenues were driven by strength in the U.S. market as well as in the EMEA markets.Segmental DetailsImagingRevenues from this segment totaled $2.35 billion, up 5% year over year on a reported basis and 4% organically.Segment EBIT was $240 million, down 16% year over year.Advanced Visualization SolutionsRevenues totaled $1.3 billion, up 7% year over year on a reported basis and 6% on an organic basis.Segment EBIT was $271 million, up 17% year over year.Patient Care SolutionsRevenues amounted to $731 million, down 6% year over year on a reported basis and down 7% organically.Segment EBIT was $27 million, down 67% year over year.Pharmaceutical DiagnosticsRevenues totaled $749 million, up 20% year over year and 10% on an organic basis.Segment EBIT was $220 million, up 14% year over year.GE HealthCare Technologies Inc. Price, Consensus and EPS Surprise GE HealthCare Technologies Inc. price-consensus-eps-surprise-chart | GE HealthCare Technologies Inc. QuoteMarginsNet income margin was 8.7%, down 100 basis points from the prior-year level, due to unfavorable impact of tariffs, partially offset by benefits from volume and price.Cumulative cash flow from operating activities at the end of the third quarter was $937 million compared with $1.04 billion a year ago.Financial PositionGEHC exited the third quarter with cash, cash equivalents and investments of $4.03 billion compared with $3.76 billion in the previous quarter.Total assets increased to $36.13 billion from $35.5 billion on a sequential basis.2025 GuidanceGE HealthCare updated its earnings guidance for 2025.The company now expects adjusted EPS to be in the range of $4.51-$4.63 compared with the previous guidance of $4.43-$4.63. The guidance includes approximately 45 cents of unfavorable impact of tariffs. The company continues to estimate revenue growth at 3% organically. The Zacks Consensus Estimate for 2025 EPS and revenues is pegged at $4.53 and $20.45 billion, respectively.Our TakeGE HealthCare delivered robust third-quarter results, wherein both earnings and revenues beat estimates. However, the company demonstrated steady execution and broad-based growth despite macroeconomic and tariff headwinds. Strength across Imaging, Advanced Visualization Solutions, and Pharmaceutical Diagnostics offset temporary softness in Patient Care Solutions, underscoring the company’s diverse and innovation-driven portfolio.Continued investment in R&D and new product introductions, such as advanced imaging systems and AI-enabled diagnostics, reflect GE HealthCare’s commitment to driving precision care and digital transformation in clinical workflows. The company also strengthened its strategic positioning with targeted acquisitions and partnerships in radiopharmaceuticals and neuroimaging AI.Operational efficiency efforts and disciplined pricing helped mitigate cost pressures, while robust demand and strong order growth signal durable customer confidence. By raising the lower end of its full-year earnings outlook, GE HealthCare reaffirmed its ability to deliver sustainable growth and navigate a challenging environment.GEHC’s Zacks Rank & Stocks to ConsiderGE HealthCare has a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the broader medical space are Solventum Corporation SOLV, Boston Scientific Corporation BSX and HealthEquity HQY.Solventum, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 4.1%. SOLV’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 13.91%. You can see the complete list of today’s Zacks #1 Rank stocks here.Solventum’s shares have gained 8.2% compared with the industry’s 6.2% growth so far this year.Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.1%.Boston Scientific’s shares have gained 13.2% compared with the industry’s 5.6% growth so far this year.HealthEquity, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 21.7%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 11.05%.HealthEquity’s shares have risen 0.6% compared with the industry’s 6.2% growth so far this year.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX): Free Stock Analysis Report HealthEquity, Inc. (HQY): Free Stock Analysis Report GE HealthCare Technologies Inc. (GEHC): Free Stock Analysis Report Solventum Corporation (SOLV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks