GE HealthCare Reports 7.1% Q4 Revenue Growth to $5.7B, Issues 2026 EPS Guidance
GE HealthCare reported Q4 2025 revenues of $5.7 billion, up 7.1% year-over-year, driven by 4.8% organic growth and record book-to-bill of 1.06. Adjusted EPS of $1.44 and free cash flow of $916 million beat prior year with 2026 guidance forecasting 3.0%–4.0% organic revenue growth and $4.95–$5.15 adjusted EPS.
1. Q4 Earnings and Revenue Outperformance
In the quarter ended December 31, 2025, GE HealthCare delivered adjusted earnings per share of $1.44, narrowly surpassing the Zacks Consensus Estimate of $1.43 and matching last year’s adjusted result of $1.45. Total revenues reached $5.7 billion, up 7.1% year-over-year, driven by an organic increase of 4.8%. Sales in the U.S. and EMEA markets were particularly strong, contributing to a book-to-bill ratio of 1.06 and reinforcing robust order flow across Imaging, Pharmaceutical Diagnostics and Advanced Visualization Solutions.
2. Profit and Margin Pressures
Net income attributable to GE HealthCare declined to $589 million from $720 million a year ago, reflecting a 320 basis-point drop in net income margin to 10.3%. Adjusted EBIT fell to $950 million from $994 million, with the adjusted EBIT margin contracting by 200 basis points to 16.7%. Management cited tariff headwinds and an unfavorable product mix as primary drivers of margin compression, partly offset by favorable volume and pricing dynamics under the Heartbeat business system.
3. Full-Year Financial Highlights and Capital Deployment
For the full year 2025, GE HealthCare posted revenues of $20.6 billion, a 4.8% increase over 2024, with organic growth of 3.5%. Net income rose to $2.1 billion from $2.0 billion, while adjusted EPS climbed to $4.59 from $4.49. Free cash flow totaled $1.5 billion, and cash flow conversion stood at 95%. In 2025 the company repurchased 2.8 million shares for $200 million, invested $482 million in capital expenditures, and agreed to acquire Intelerad for $2.3 billion, expected to close in H1 2026 subject to regulatory approval.
4. 2026 Outlook and Guidance
GE HealthCare forecasts organic revenue growth of 3.0% to 4.0% in 2026, with adjusted EBIT margin expansion to 15.8%–16.1%, representing a 50 to 80 basis-point improvement. The company targets adjusted EPS of $4.95 to $5.15, implying year-over-year growth of 7.9% to 12.3%, and free cash flow of approximately $1.7 billion. Management expects lower tariff impacts compared to 2025 and remains focused on precision care innovation, margin recovery and shareholder returns through dividends and share repurchases.