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GE HealthCare raises annual profit forecast on smaller tariff impact
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GE HealthCare raises annual profit forecast on smaller tariff impact
Jul 30, 2025 4:50 AM

July 30 (Reuters) - GE HealthCare Technologies ( GEHC )

raised annual profit forecast on Wednesday, as the medical

device maker expects a smaller hit from tariffs.

The company expects adjusted profit of $4.43 to $4.63 per

share for 2025, compared with its previous range of $3.90 to

$4.10 per share.

The forecast includes a 45-cent-per-share impact from

tariffs, which is lower than the 85 cents or $500 million hit it

expected in April.

Other medical device maker Boston Scientific ( BSX ) and

healthcare conglomerate Johnson & Johnson ( JNJ ), whose costs

were exclusively tied to its medtech unit, also halved their

expectations for tariff-related costs for the year to about $100

million and $200 million, respectively.

GE HealthCare ( GEHC ) expects annual organic revenue growth of 3%,

compared with its previous forecast of a 2% to 3% increase.

J.P.Morgan analyst Robbie Marcus said the company's outlook

was "good enough as a more in-line organic growth performance is

balanced against conservative tariff assumptions that could/will

likely leave upside on the table".

GE HealthCare ( GEHC ) also beat Wall Street estimates for

second-quarter profit and revenue, driven by growth in its all

four businesses.

Revenue at imaging devices, the company's largest segment,

grew 2% during the period. Its other units are advanced

visualization solutions, patient care solutions and

pharmaceutical diagnostics.

Medical device manufacturers have been benefiting from

still-high demand for elective surgical procedures in the United

States, especially among older adults.

GE HealthCare's ( GEHC ) total revenue came in at $5.01 billion

during the quarter ended June 30, compared with analysts'

average estimate of $4.96 billion, according to data compiled by

LSEG.

On an adjusted basis, it earned $1.06 per share, compared

with the estimate of 92 cents per share.

The company said its adjusted core margin was down 80 basis

points during the quarter, impacted by tariffs.

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