GE HealthCare Q4 Revenue Rises 7.1% as It Forecasts a Smaller 2026 Tariff Hit

GE HealthCare said on Wednesday, February 4, that its fourth-quarter 2025 revenue rose 7.1% to $5.7 billion, including organic revenue growth of 4.8%, driven by its pharmaceutical diagnostics, imaging and advanced visualization businesses and by strength in the U.S. and in Europe, the Middle East and Africa, according to the company's earnings release.

Tariffs weighed on profit. Diluted earnings per share fell to $1.29 from $1.57, and adjusted EPS, a non-GAAP measure, was $1.44 against $1.45 a year earlier, with both measures hurt by tariff expense, the company said. Its adjusted EBIT margin fell 200 basis points to 16.7%, which it attributed to tariffs and unfavorable mix, partly offset by volume and price. Fourth-quarter orders rose 2.0% organically, with a book-to-bill ratio of 1.06.

For the full year, revenue rose 4.8% to $20.6 billion, with organic growth of 3.5%. Diluted EPS was $4.55 and adjusted EPS $4.59. Free cash flow was $1.5 billion, down $49 million, a decline the company attributed to tariffs.

2026 outlook

GE HealthCare introduced 2026 guidance of 3.0% to 4.0% organic revenue growth and adjusted EPS of $4.95 to $5.15, which it said represents 7.9% to 12.3% growth. It said it expects the 2026 tariff impact to be lower than in 2025, based on current rates.

"We entered 2026 with momentum driven by a differentiated innovation pipeline. While the macro environment remains dynamic, we are focused on delivering profitable growth, strong cash flow, and shareholder value," chief executive Peter Arduini said in the release.

The company also said it expects to close the planned $2.3 billion acquisition of Intelerad, announced in the fourth quarter, in the first half of 2026, subject to regulatory approvals. It said Intelerad will advance its cloud-enabled enterprise imaging.

Moving production

On the earnings call, chief financial officer James Saccaro said tariffs cost the company $245 million in earnings in 2025, including about $100 million in the fourth quarter, MedTech Dive reported. He said GE HealthCare has moved a PET/CT imaging line from the Middle East to the U.S. and a surgery line from Asia to the U.S., and plans further supply-chain shifts and more duty-free trade under the United States-Mexico-Canada Agreement. The company expects its largest tariff hit of 2026 in the first quarter, according to the report.

One open question for device makers is a Section 232 national security investigation into medical equipment that the Trump administration opened in September, MedTech Dive noted. No new medtech levies had been announced from it.