By Puyaan Singh (Reuters) -GE HealthCare Technologies raised annual profit forecast on Wednesday, as the medical device maker expects a smaller hit from tariffs. However, shares of the company were down 5.6% due to investor concerns on market share loss and slow order growth, which at 3% was the softest among the big three imaging […]
Health
GE HealthCare raises annual profit forecast on smaller tariff impact
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By Puyaan Singh
(Reuters) -GE HealthCare Technologies raised annual profit forecast on Wednesday, as the medical device maker expects a smaller hit from tariffs.
However, shares of the company were down 5.6% due to investor concerns on market share loss and slow order growth, which at 3% was the softest among the big three imaging device companies, including Philips and Siemens Healthineers, said BTIG analyst Ryan Zimmerman.
The company expects adjusted per-share profit of $4.43 to $4.63 for 2025, compared with its previous range of $3.90 to $4.10.
The forecast includes an impact of 45 cents per share or $265 million from tariffs, which is lower than the 85 cents or $500 million it expected in April.
Other medical device maker Boston Scientific and healthcare conglomerate Johnson & Johnson also halved their expected tariff-related costs for the year to about $100 million and $200 million, respectively, with the latter’s costs exclusively tied to its medtech unit.
Jay Saccaro, GE HealthCare’s chief financial officer, said the company will continue “into 2026 and beyond” to drive mitigation actions, such as working with its suppliers to move capacity to more tariff-friendly geographies.
As a result, the company expects a lower impact on profit from tariffs in 2026 compared with 2025.
GE HealthCare also beat Wall Street estimates for second-quarter profit and revenue, driven by growth in 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.
GE HealthCare’s 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, including an 8-cent hit from tariffs, compared with the estimate of 92 cents per share.
($1 = 0.8712 euros)
(Reporting by Puyaan Singh in Bengaluru; Editing by Shilpi Majumdar and Vijay Kishore)