Total Revenue

+2.7% (from $4,650m to $4,777m)

Total Revenue increased by 2.7% YoY due to a balanced mix of modest improvements in product and service sales. Gains in high-performing segments like Ultrasound helped offset declines (e.g. in Imaging), reflecting a shift from the growth trends seen in previous periods. " " "

Imaging Revenue

–13% (from $2,466m to $2,140m)

Imaging Revenue declined by 13% YoY largely because of lower sales volume in China and unfavorable foreign currency impacts, making it difficult to sustain the high-growth levels observed in prior periods. " " "

Ultrasound Revenue

+50% (from $824m to $1,239m)

Ultrasound Revenue surged by 50% YoY driven by strong demand following the strategic reorganization (i.e. transferring Image Guided Therapies into the AVS/Ultrasound segment) and robust product innovation, a notable acceleration compared to the modest organic growth in previous periods. " " " "

Pharmaceutical Diagnostics

+5.5% (from $599m to $632m)

Pharmaceutical Diagnostics grew modestly by 5.5% YoY due to steady demand for precision diagnostics, aided by new product launches like Flyrcado and improvements in volume and pricing compared to prior periods where the segment had already experienced double-digit growth. " " "

Operating Income

+16.5% (from $540m to $629m)

Operating Income improved by 16.5% YoY resulting from an increased gross profit—up by $111 million—and disciplined control of operating expenses, building on earlier productivity initiatives and cost management measures implemented in previous periods. " " "

Net Income

+51% (from $388m to $588m)

Net Income surged by 51% YoY as lower non-operating costs, reduced restructuring expenses, and a remarkable turnaround in investment revaluation (from a $20 million loss to a $92 million gain) dramatically improved margins compared to previous quarters. " " " "

United States & Canada (USCAN)

+6.9% (from $2,093m to $2,237m)

USCAN revenue grew by 6.9% YoY driven by strong segment performance, improved product mix and pricing, and healthy organic orders. This continuity built upon the positive momentum seen in the previous period. " " "

Organic Revenue Growth

FY 2025

no prior guidance

2% to 3% "

no prior guidance

Adjusted EBIT Margin

FY 2025

16.7% to 16.8% "

14.2% to 14.4% "

lowered

Adjusted Effective Tax Rate

FY 2025

22% to 23% "

21% to 22% "

lowered

Adjusted EPS

FY 2025

$4.61 to $4.75 "

$3.90 to $4.10 "

lowered

Free Cash Flow

FY 2025

At least $1.75 billion "

At least $1.2 billion "

lowered

Foreign Exchange Impact

FY 2025

1.5% headwind "

Neutral to revenue "

raised

China Revenue Performance

FY 2025

Anticipated low single-digit decline "

Low single-digit decline YoY "

no change

Share Repurchase Program

FY 2025

no prior guidance

$1 billion authorization "

no prior guidance

Flyrcado Product Launch

FY 2025

$30 million "

no current guidance

no current guidance

Organic Revenue Growth

Q2 2025

no prior guidance

1% to 2% YoY "

no prior guidance

Adjusted EPS

Q2 2025

no prior guidance

High single-digit decline YoY "

no prior guidance

Robust Demand and Orders Growth

Across Q2–Q4 2024, GE HealthCare consistently reported strong organic orders growth, robust demand across regions, healthy book‑to‑bill ratios (ranging from 1.04x to 1.09x), and record backlog figures (approximately $19.6–$20.6 billion). " " "

In Q1 2025, the company emphasized a very robust demand environment in key regions (U.S. and Europe), record double‑digit orders growth, and a book‑to‑bill ratio of 1.09x, underscoring the solid momentum and a healthy backlog. " " "

Consistently strong demand with even more pronounced order growth and regional emphasis, reinforcing a robust sales pipeline.

Tariff Exposure and Mitigation Strategies

Q4 2024 highlighted tariff impacts—incorporating China tariffs into guidance with an estimated 10 bps EBIT effect and approximately 1 point EPS impact—plus outlines of mitigation plans. Q2 and Q3 provided little to no detail on tariffs. " "

Q1 2025 provided extensive detail on tariff exposure: a gross impact of $1.75 per share, with actions mitigating over 50% of that, yielding a net impact of approximately $0.80 per share (total adjusted EPS impact of $0.85). The call outlined both immediate and longer‑term operational and supply chain strategies. " " "

Increased detail and focus—moving from a mention in Q4 to a highly granular discussion in Q1—indicating an evolving mitigation approach amid persistent external pressures.

China Market Headwinds and Trade Tensions

In Q2–Q4 2024, discussions focused on persistent headwinds in China: sales declines ranging from mid-single‐digit to high‑teens, delayed stimulus rollouts, and volatile market conditions; trade tensions and tariffs were reported as ongoing risks. " " "

Q1 2025 continued to feature China as a persistent challenge, with expectations of a mid‑single‑digit decline in sales for the first half, detailed plans for local sourcing and joint ventures, and further discussion of tariff impacts stemming from U.S.-China trade tensions. " " "

A persistent risk factor that is being met with more refined strategic responses—local operations adjustments and tailored mitigation measures—despite ongoing challenges.

Innovative Product Pipeline and Upcoming Launches

Q2 2024 mentioned investments in Photon Counting CT and next‑generation MRI, while Q3 2024 introduced breakthrough products like Flyrcado and highlighted AI and digital innovations. Q4 2024 stressed a robust pipeline with approximately 40 NPIs and ongoing innovation, though Photon Counting CT was less explicitly mentioned. " " "

Q1 2025 re‑emphasized the pipeline’s significance by confirming the Photon Counting CT submission is on track (approval expected in 2026) along with key launches like Flyrcado and the Revolution Vibe Cardiac CT System, underscoring commitment to game‑changing technologies. " " "

Enhanced focus on cutting‑edge technologies, with explicit advancements (e.g. Photon Counting CT) signifying a stronger and more progressive innovation strategy.

Margin Expansion and Cost Optimization Initiatives

Throughout Q2–Q4 2024, initiatives showing adjusted EBIT margins expanding by 60 to 260 basis points, cost-saving actions via lean approaches, TA exit, and productivity improvements were prominently discussed. Emphasis was on internal operational efficiencies and margin drivers across segments. " " " "

In Q1 2025, GE Healthcare reported a 15% adjusted EBIT margin with a year‑over‑year improvement, though full‑year guidance was revised downward (14.2%–14.4%) mainly due to tariff pressures. The discussion reinforced ongoing cost optimization initiatives alongside productivity improvements across segments. " "

Steady focus maintained over time, with Q1 2025 reflecting a blend of positive internal productivity gains tempered by external tariff headwinds, resulting in modest adjustments to outlook.

Operational and Supply Chain Adjustments

Q2–Q4 2024 discussions emphasized lean culture, extensive Kaizen sessions, exit from TSAs, IT consolidation, inventory management challenges and improvements, and strategic supplier partnerships to optimize operations. " " " " "

Q1 2025 continued to underline operational adjustments with further focus on mitigating tariff impact through strategic inventory management, targeted cost structure efficiencies, and supply chain optimization measures aimed at supporting volume growth despite increased complexity. " " "

Consistent emphasis on operational excellence—with Q1 2025 adding an extra layer of complexity to address tariff-induced supply chain challenges—demonstrating an adaptive, ongoing execution strategy.

Regulatory and Reimbursement Developments

In Q2–Q4 2024, the focus was on emerging CMS reimbursement proposals, development of coding and HCPCS approvals for key PDx products like Flyrcado, and optimistic commentary on unlocking radiopharmaceutical value. " " "

Q1 2025 highlighted a major regulatory win by securing CMS pass‑through pricing for Flyrcado, further advancing reimbursement support and reinforcing the product’s differentiation compared to legacy imaging agents. " " "

Steady progression in reimbursement strategy—with regulatory milestones moving from preparatory and proposal stages to concrete pricing achievements, supporting future PDx growth.

Competitive Threats from Emerging Diagnostics

Q4 2024 briefly touched on competitive market dynamics and pressures in China, noting strong local competition and emphasizing GE HealthCare’s unique positioning. Earlier periods (Q2 and Q3) showed little to no discussion on this topic. " "

Q1 2025 did not mention competitive threats from emerging diagnostics, suggesting that the focus has shifted away from this issue in the current discussion [—].

Reduced emphasis compared with earlier periods—indicating either a decreased perception of threat or a strategic decision to focus on other priorities in Q1 2025.

Revenue Guidance and Free Cash Flow Concerns

In Q2–Q4 2024, guidance was modest (organic revenue growth 1%-3%) with free cash flow discussions highlighting inventory builds, timing issues, and expectations for improvement later in the year. There was steady, though cautious, optimism regarding margin sustainability and performance. " " " "

In Q1 2025, GE Healthcare maintained organic revenue guidance of 2% to 3%, while revising full‑year free cash flow guidance downward (at least $1.2 billion, down from $1.75 billion) due to tariff-related impacts and the liquidation of higher‑cost inventories. The commentary points to continued macroeconomic challenges while still affirming revenue stability. " " "

Ongoing adjustment of guidance reflecting macroeconomic pressures—while revenue remains steady, cash flow concerns have intensified, prompting downward revisions and renewed focus on cost and inventory management.