GE HealthCare revenue beats as medical device maker flags tariff headwinds

Published 30/04/2025, 11:46
© Reuters

Investing.com - GE HealthCare Technologies (NASDAQ:GEHC) has reported better-than-anticipated first-quarter revenue and reiterated its full-year sales growth guidance despite global trade tensions, as the medical devices group was bolstered by strong demand in the United States.

Manufacturers of medical devices in the U.S. have been bolstered in recent months by a post-pandemic uptick in elective surgeries, especially among older Americans.

However, these companies have still grappled with possible headwinds from President Donald Trump’s sweeping tariff agenda, particularly his punishing levies on China. Earlier this year, GE HealthCare said it anticipates that the duties on China will lead to extra costs in 2025.

For the current year, GE HealthCare backed its projection for 2% to 3% growth in organic revenues. Adjusted per-share income is seen at $3.90 to $4.10, compared with prior forecasts of $4.61 to $4.75.

GE HealthCare noted that the guidance assumes that the current U.S.-China tariffs remain in place and Trump’s higher reciprocal levies on a host of other nations snap back into effect at the end of an ongoing 90-day pause.

"Regarding the current global trade environment, we are actively driving mitigation actions," said CEO Peter Arduini in a statement. "We continue to see strong customer demand in many of the markets we serve and are well-positioned to drive long-term value as we invest in future innovation.”

In the first quarter, GE HealthCare said it logged record double-digit orders growth and solid expansion in earnings driven by volume and productivity.

Revenue during the period grew by 2.7% versus a year ago to $4.78 billion. Analysts had expected $4.66 billion.

Adjusted core profit also ticked up by 5% to $715 million, topping estimates of $685.9 million.

Shares in GE HealthCare rose by more than 4% in premarket U.S. trading on Wednesday.

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