GE HealthCare reports fourth quarter and full year 2025 financial results

Full year 2025 total company financial performance⁽¹⁾

• Revenues of $20.6 billion, up 4.8%, including Organic revenue growth* of 3.5%; revenue growth exceeded expectations and was driven by growth in Imaging, PDx, and AVS with strength in U.S. and EMEA.
• Total orders up 5.2% organically and book-to-bill of 1.07 times.
• Net income attributable to GE HealthCare of $2.1 billion versus $2.0 billion, and Adjusted EBIT* of $3.2 billion versus $3.2 billion.
• Net income margin of 10.1%, flat, and Adjusted EBIT margin* of 15.3% versus 16.3%, down 100 bps. Excluding tariff impacts, margin exceeded prior year.
• Diluted EPS of $4.55 versus $4.34, up $0.21. Adjusted EPS* of $4.59 versus $4.49, up $0.10.

GE HealthCare Vice President and CFO Jay Saccaro commented, “We ended 2025 in a position of strength with record backlog. We significantly mitigated gross tariff impacts, demonstrating operational resilience. We also returned capital to shareholders through share repurchases and our dividend. Our robust balance sheet and strong cash flow support our growth ambitions, which include both organic and inorganic investment. As we look ahead, we are committed to executing on our strategy to drive top- and bottom-line growth in 2026 and over the medium-term.”

Capital deployment⁽¹⁾

• In the fourth quarter, cash flow from operating activities of $1.0 billion, up $137 million. Free cash flow* of $916 million, up $105 million. For the full year, cash flow from operating activities of $2.0 billion, up $32 million and Free cash flow* of $1.5 billion, down $49 million. The annual decrease was due to tariff impact, offset by lower interest and income taxes paid. Cash flow conversion of 95%, and Free cash flow conversion^* of 72%.
• Capital expenditures⁽²⁾ in the fourth quarter of $134 million compared to $102 million in 2024. For the full year 2025, capital expenditures⁽²⁾ of $482 million compared to $401 million in 2024. We continue to prioritize investment in innovation and capacity expansion.
• In April 2025, the Board of Directors authorized a $1.0 billion share repurchase program with no end date. In 2025, the Company repurchased 2.8 million shares for total consideration of $200 million.
• In 2025, the Company closed the acquisitions of Nihon Medi-Physics and icometrix. During the fourth quarter, the Company announced the planned $2.3 billion acquisition of Intelerad. The addition of Intelerad will offer a compelling return profile and will advance our cloud-enabled enterprise imaging across care settings. The Company expects to close the acquisition in the first half of 2026, subject to regulatory approvals.
• As of December 31, 2025, cash and cash equivalents totaled $4.5 billion and the Company had access to $3.5 billion of revolving credit facilities. Total debt outstanding was $10.0 billion.
• Declared quarterly dividend of $0.035 per share to stockholders of record for all quarters in 2025.

Recent innovation and commercial highlights

• GE HealthCare announces U.S. FDA 510(k) clearance and CE Mark for Allia Moveo and marks first global installation, advancing precision care in the interventional suite
  
• GE HealthCare and Indonesia’s Ministry of Health to expand access to quality care through the provision of 300+ advanced CT scanners
  
• GE HealthCare and Mayo Clinic unveil GEMINI-RT: A bold research collaboration in radiation therapy and advanced cancer care
  
• University of Rochester Medical Center and GE HealthCare form seven-year Care Alliance to build advanced capabilities across system
  
• GE HealthCare unveils next-generation SIGNA MRI technology, aiming to boost efficiency, enhance patient experience, and advance sustainability
  
• GE HealthCare announces CE Mark for the Omni 128cm total body PET/CT system
  
• GE HealthCare introduces Genesis™ Radiology Workspace: a cloud-first solution with a goal for smarter, faster diagnosis
  
• GE HealthCare’s Photonova™ Spectra with Deep Silicon reimagines photon-counting CT to see more, know more and achieve more
  
• GE HealthCare to acquire Intelerad, advancing cloud-enabled enterprise imaging across care settings
  
• GE HealthCare announces Flyrcado milestone: Strong pilot results drive broader rollout at CVAUSA

2026 guidance
Today, the Company introduces 2026 full-year guidance metrics as follows:

• Organic revenue growth* of 3.0% to 4.0% year-over-year
• Adjusted EBIT margin* of 15.8% to 16.1%, reflecting an expansion of 50 bps to 80 bps year-over-year
• Adjusted effective tax rate (ETR)* in the range of 20.0% to 21.0%
• Adjusted EPS* in the range of $4.95 to $5.15, representing 7.9% to 12.3% growth year-over-year
• Free cash flow* of approximately $1.7 billion
• Expect 2026 tariff impact to be lower than 2025, based on current rates

The Company provides its outlook on a non-GAAP basis. Refer to the Non-GAAP financial measures in outlook section below for more details.

Financial rounding
Certain columns and rows in this document may not sum due to the use of rounded numbers. Percentages presented are calculated from the underlying whole-dollar amounts.

Non-GAAP financial measures

The non-GAAP financial measures presented in this press release are supplemental measures of GE HealthCare’s performance and its liquidity that the Company believes will help investors understand its financial condition, cash flows, and operating results, and assess its future prospects. When read in conjunction with the Company’s U.S. GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in GE HealthCare’s underlying businesses and can be used by management as one basis for making financial, operational, and planning decisions. Descriptions of the reported non-GAAP measures are included below.

The Company reports Organic revenue and Organic revenue growth rate to provide management and investors with additional understanding and visibility into the underlying revenue trends of the Company’s established, ongoing operations, as well as provide insights into overall demand for its products and services. To calculate these measures, the Company excludes the effect of acquisitions, dispositions, and foreign currency rate fluctuations.

The Company reports EBIT, Adjusted EBIT, Adjusted EBIT margin, Adjusted net income, and Adjusted earnings per share to provide management and investors with an additional understanding of its business by highlighting the results from ongoing operations and the underlying profitability factors, on a normalized basis. To calculate these measures the Company excludes, and reflects in the detailed reconciliations below, the following adjustments as applicable: Interest and other financial charges – net, Net (income) loss attributable to noncontrolling interests, Non-operating benefit (income) costs, Benefit (provision) for income taxes and certain tax related adjustments, and certain non-recurring and/or non-cash items. GE HealthCare may from time to time consider excluding other non-recurring items to enhance comparability between periods. Adjusted EBIT margin is calculated by taking Adjusted EBIT divided by Total revenues for the same period.

The Company reports Adjusted tax expense and Adjusted ETR to provide management and investors with a better understanding of the normalized tax rate applicable to the business and provide more consistent comparability across periods. Adjusted tax expense excludes the income tax related to the pre-tax income adjustments included as part of Adjusted net income and certain income tax adjustments, such as adjustments to deferred tax assets or liabilities. The Company may from time to time consider excluding other non-recurring tax items to enhance comparability between periods. Adjusted ETR is Adjusted tax expense divided by income before income taxes less the pre-tax income adjustments referenced above.

The Company reports Free cash flow and Free cash flow conversion to provide management and investors with an important measure of the ability to generate cash on a normalized basis and provide insight into the Company’s flexibility to allocate capital. Free cash flow is Cash from (used for) operating activities – continuing operations including cash flows related to the additions and dispositions of property, plant, and equipment (“PP&E”) and additions of internal-use software. Free cash flow does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the capital required for debt repayments. Free cash flow conversion is calculated by taking Free cash flow divided by Adjusted net income.

Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes. In order to compensate for the discussed limitations, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP. The detailed reconciliations of each non-GAAP financial measure to the most directly comparable U.S. GAAP financial measure are provided below, and no single financial measure should be relied on to evaluate our business.

Non-GAAP financial reconciliations

Non-GAAP financial measures in outlook

GE HealthCare calculates forward-looking non-GAAP financial measures, including Organic revenue growth, Adjusted EBIT margin, Adjusted ETR, Adjusted EPS, and Free cash flow based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. GE HealthCare does not provide reconciliations of these forward-looking non-GAAP financial measures to the respective GAAP metrics as it is unable to predict with reasonable certainty and without unreasonable effort certain items such as the impact of changes in currency exchange rates, impacts associated with business acquisitions or dispositions, timing and magnitude of restructuring activities, and revaluation of strategic investments, amongst other items. The timing and amounts of these items are uncertain and could have a substantial impact on GE HealthCare’s results in accordance with GAAP.

Key performance indicators

Management uses the following metrics to provide a leading indicator of current business demand from customers for products and services.

• Organic orders growth: Rate of change period-over-period of contractual commitments with customers to provide specified goods or services for an agreed upon price, and excluding the effects of: (1) recent acquisitions and dispositions with less than a full year of comparable orders; and (2) foreign currency exchange rate fluctuations in order to present orders on a constant currency basis.
• Book-to-bill: Total orders divided by Total revenues within a given financial period (e.g., quarter or FY).

Conference call and webcast information

GE HealthCare will discuss its results during its live earnings call today, February 4, 2026 at 8:30 am ET/7:30 am CT. The webcast and accompanying slide presentation containing financial information can be accessed by visiting the investor section of the website at https://investor.gehealthcare.com/news-events/events. An archived version of the webcast will be available on the website after the call.

Forward-looking statements

This release contains forward-looking statements. These forward-looking statements might be identified by words, and variations of words, such as “will,” “expect,” “may,” “would,” “could,” “plan,” “believe,” “anticipate,” “intend,” “estimate,” “potential,” “position,” “forecast,” “target,” “guidance,” “outlook,” and similar expressions. These forward-looking statements may include, but are not limited to, statements about the Company’s business and expected financial performance, financial condition, and results of operations, including revenue, revenue growth, profit, taxes, earnings per share, and cash flows, and the Company’s outlook; the impacts of macroeconomic and market conditions, including the impact of tariffs and other trade restrictions, and volatility on the Company’s business, operations, financial results, and financial position and on supply chains and the world economy; share repurchases; and the Company’s strategy, innovation, and acquisitions and investments. These forward-looking statements involve risks and uncertainties, many of which are beyond the Company’s control. Factors that could cause the Company’s actual results to differ materially from those described in its forward-looking statements include, but are not limited to, operating in highly competitive markets; global geopolitical and economic instability, including as a result of changes in trade and tariff policy, and international conflicts and tensions, including between Ukraine and Russia and in other regions; public health crises, epidemics, and pandemics, and their effects on the Company’s business; changes in third-party and government reimbursement processes, rates, and contractual relationships, including related to government shutdowns, and changes in the mix of public and private payers; demand for the Company’s products, services, or solutions and factors that affect that demand; developments in the market in China; the Company’s ability to control increases in healthcare costs and any subsequent effect on demand for the Company’s products, services, or solutions; the Company’s ability to successfully complete strategic transactions; the actions or inactions of third parties with whom the Company partners and the various collaboration, licensing, and other partnerships and alliances the Company has with third parties; the impacts related to the Company’s increasing focus on and investment in cloud, edge computing, artificial intelligence, and software offerings; management of the Company’s supply chain and the Company’s ability to cost-effectively secure the materials it needs to operate its business; disruptions in the Company’s operations; the impact of potential information technology, cybersecurity, or data security breaches; maintenance and protection of the Company’s intellectual property rights, as well as maintenance of successful research and development efforts with respect to commercially successful products and technologies; the Company’s ability to attract and/or retain key talent and qualified employees; increasing attention to sustainability matters; compliance with the various legal, regulatory, tax, privacy, and other laws to which the Company is subject, such as the Foreign Corrupt Practices Act and similar anti-corruption and anti-bribery laws globally, and related changes, claims, inquiries, investigations, or actions; the impact of potential product liability claims or potential litigation, arbitration, or similar proceedings; the Company’s level of indebtedness and the impact of complying with the covenants and other terms of the Company’s debt instruments on its business. Please also see Item 1A, “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the U.S. Securities and Exchange Commission and any updates or amendments it makes in future filings. There may be other factors not presently known to the Company or which it currently considers to be immaterial that could cause the Company’s actual results to differ materially from those projected in any forward-looking statements the Company makes. The Company does not undertake any obligation to update or revise its forward-looking statements except as required by applicable law or regulation.