GE HealthCare Q3 Revenue Up, Net Income Mixed Amid Acquisitions

TL;DR

**GEHC is a buy; strong cash flow and strategic acquisitions position them for long-term growth despite a minor Q3 net income dip.**

AI Summary

GE HealthCare Technologies Inc. reported total revenues of $5,143 million for the three months ended September 30, 2025, an increase of 5.8% from $4,863 million in the prior year period. For the nine months ended September 30, 2025, total revenues grew to $14,927 million, up 4.0% from $14,353 million in 2024. Net income attributable to GE HealthCare decreased by 5.1% to $446 million for the three-month period, down from $470 million, but increased significantly by 17.5% to $1,495 million for the nine-month period, compared to $1,272 million in 2024. Diluted EPS for the nine months rose to $3.26 from $2.77. The company's cash, cash equivalents, and restricted cash increased to $4,027 million as of September 30, 2025, from $2,889 million at December 31, 2024. Key changes include a $200 million repurchase of common stock during the nine-month period and an increase in goodwill to $13,441 million from $13,136 million, indicating recent acquisitions. Risks highlighted include global geopolitical and economic instability, changes in healthcare reimbursement, and supply chain disruptions.

Why It Matters

GE HealthCare's revenue growth signals continued demand for its medical technology, which is positive for investors and employees. However, the slight dip in Q3 net income, despite a strong nine-month performance, warrants investor scrutiny regarding short-term profitability pressures. The company's strategic acquisitions, evidenced by increased goodwill, could enhance its competitive position against rivals like Siemens Healthineers and Philips, potentially leading to new product offerings for customers. The substantial increase in cash and share repurchases indicate a healthy financial position and a commitment to shareholder returns, which could attract more institutional investment.

Risk Assessment

Risk Level: medium — The risk level is medium due to the company's exposure to 'global geopolitical and economic instability' and 'changes in third-party and government reimbursement processes,' as stated in the forward-looking statements. While the company shows strong cash flow from operations at $937 million for the nine months ended September 30, 2025, and increased total assets to $36,127 million, these external factors could impact future performance, particularly given the competitive healthcare market.

Analyst Insight

Investors should consider holding or initiating a position in GEHC, focusing on its long-term growth potential driven by strategic acquisitions and robust cash generation. Monitor future earnings reports for sustained revenue growth and improvements in net income, especially given the Q3 dip. Pay close attention to any updates on global economic stability and healthcare policy changes, as these are identified risks.

Financial Highlights

revenue

$14.93B

net Income

$1.50B

eps

$3.26

cash Position

$4.03B

revenue Growth

+4.0%

Revenue Breakdown

Key Numbers

• $5.14B — Total Revenues (Q3 2025) (Increased 5.8% from $4.86B in Q3 2024)
• $14.93B — Total Revenues (9M 2025) (Increased 4.0% from $14.35B in 9M 2024)
• $446M — Net Income Attributable to GE HealthCare (Q3 2025) (Decreased 5.1% from $470M in Q3 2024)
• $1.50B — Net Income Attributable to GE HealthCare (9M 2025) (Increased 17.5% from $1.27B in 9M 2024)
• $3.26 — Diluted EPS (9M 2025) (Increased from $2.77 in 9M 2024)
• $4.03B — Cash, Cash Equivalents, and Restricted Cash (As of September 30, 2025, up from $2.89B at Dec 31, 2024)
• $200M — Common Stock Repurchase (For the nine months ended September 30, 2025)
• $13.44B — Goodwill (As of September 30, 2025, up from $13.14B at Dec 31, 2024, indicating acquisitions)
• $937M — Cash from Operating Activities (For the nine months ended September 30, 2025)
• 455,521,592 — Shares Outstanding (As of October 22, 2025)

Key Players & Entities

• GE HealthCare Technologies Inc. (company) — registrant
• General Electric Company (company) — former parent, now GE Aerospace
• SEC (regulator) — United States Securities and Exchange Commission
• Nasdaq Stock Market LLC (company) — exchange where common stock is registered
• Nihon Medi-Physics (company) — equity method investment
• $5,143 million (dollar_amount) — total revenues for three months ended September 30, 2025
• $1,495 million (dollar_amount) — net income attributable to GE HealthCare for nine months ended September 30, 2025
• $200 million (dollar_amount) — repurchase of common stock for nine months ended September 30, 2025
• $13,441 million (dollar_amount) — goodwill as of September 30, 2025
• $4,027 million (dollar_amount) — cash, cash equivalents, and restricted cash as of September 30, 2025

FAQ

Risk Factors

• Global Geopolitical and Economic Instability [high — market]: The company faces risks from global geopolitical and economic instability, which can disrupt operations, impact demand for products and services, and affect foreign currency exchange rates. This instability can lead to increased costs and reduced profitability.
• Changes in Healthcare Reimbursement [high — regulatory]: Alterations in healthcare reimbursement policies by governments and private payers can significantly impact the demand for GE HealthCare's products and services. Reduced reimbursement rates could lead to lower sales volumes and profitability.
• Supply Chain Disruptions [medium — operational]: The company is susceptible to supply chain disruptions, which can affect the availability of raw materials and components needed for manufacturing. Such disruptions can lead to production delays, increased costs, and an inability to meet customer demand.
• Interest Rate Fluctuations [medium — financial]: Changes in interest rates can impact the company's cost of borrowing and the fair value of its financial instruments. Significant fluctuations could affect financial performance and liquidity.
• Product Liability and Litigation [medium — legal]: GE HealthCare is subject to risks associated with product liability claims and other litigation. Adverse outcomes in legal proceedings could result in significant financial penalties and reputational damage.
• Competition in the Healthcare Industry [medium — market]: The healthcare industry is highly competitive, with numerous players offering similar products and services. Intense competition can lead to pricing pressures and reduced market share.
• Cybersecurity Threats [medium — operational]: The company's reliance on technology and data makes it vulnerable to cybersecurity threats. A breach could compromise sensitive information, disrupt operations, and damage the company's reputation.
• Compliance with Healthcare Regulations [high — regulatory]: GE HealthCare must comply with a complex web of healthcare regulations globally. Failure to adhere to these regulations can result in fines, penalties, and reputational harm.

Industry Context

GE HealthCare operates in the highly competitive and regulated global healthcare technology market. Key trends include the increasing demand for advanced diagnostic imaging, digital health solutions, and personalized medicine. The industry is characterized by significant R&D investment, consolidation through acquisitions, and evolving reimbursement models.

Regulatory Implications

The company faces stringent regulatory oversight from bodies like the FDA and international equivalents, impacting product development, manufacturing, and marketing. Changes in healthcare reimbursement policies by governments and private payers are a significant risk, directly affecting revenue streams and profitability.

What Investors Should Do

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Key Dates

• 2025-09-30: End of Q3 2025 and Nine-Month Period — Reporting period for the 10-Q, showing revenue growth and mixed net income performance.
• 2025-12-31: End of Fiscal Year 2024 — Reference point for year-end cash and goodwill balances.
• 2025-10-22: Shares Outstanding Date — Indicates the number of shares outstanding as of a recent date, relevant for EPS calculations.

Glossary

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its net identifiable assets. (An increase in goodwill to $13.44B from $13.14B indicates recent acquisitions by GE HealthCare.)

Diluted EPS

Earnings per share calculated using the weighted average number of common shares outstanding, including the dilutive effect of stock options and convertible securities. (Diluted EPS for the nine months rose to $3.26 from $2.77, indicating improved profitability on a per-share basis.)

Noncontrolling interests

The portion of equity interest in a subsidiary that is not attributable to the parent company. (Net income attributable to noncontrolling interests is subtracted to arrive at net income attributable to GE HealthCare.)

Cash flow hedges

Financial instruments used to hedge against the risk of future cash flows associated with a particular transaction or event. (Changes in cash flow hedges are reported in other comprehensive income, impacting total comprehensive income.)

Contract and other deferred assets

Assets that represent amounts due from customers for services or products that have not yet been recognized as revenue. (These assets increased to $1,125 million from $974 million, suggesting growth in unbilled revenue or long-term contracts.)

Operating income

A company's earnings before interest and taxes, reflecting the profitability of its core business operations. (Operating income for the nine months increased to $1,936 million from $1,824 million, showing improved operational performance.)

Currency translation adjustments

Gains or losses resulting from the conversion of financial statements of foreign subsidiaries into the parent company's reporting currency. (Significant currency translation adjustments were reported in other comprehensive income, impacting overall comprehensive income.)

Common stock repurchase

A company's action of buying back its own shares from the open market. (A $200 million repurchase of common stock during the nine-month period indicates capital allocation towards shareholder returns.)

Year-Over-Year Comparison

GE HealthCare demonstrated revenue growth in both the three-month and nine-month periods of 2025 compared to 2024, with total revenues increasing by 5.8% and 4.0% respectively. However, net income attributable to GE HealthCare saw a 5.1% decrease in the third quarter, contrasting with a significant 17.5% increase for the nine-month period. The company's cash position has strengthened considerably, up to $4.03B from $2.89B. New risks related to global geopolitical and economic instability, alongside ongoing concerns about healthcare reimbursement and supply chain disruptions, were highlighted.

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share GEHC The Nasdaq Stock Market

Filing Documents

• gehc-20250930.htm (10-Q) — 2267KB
• gehc3q202510qexhibit311.htm (EX-31.1) — 9KB
• gehc3q202510qexhibit312.htm (EX-31.2) — 9KB
• gehc3q202510qexhibit321.htm (EX-32.1) — 5KB
• gehc-20250930_g1.jpg (GRAPHIC) — 808KB
• 0001932393-25-000053.txt ( ) — 14383KB
• gehc-20250930.xsd (EX-101.SCH) — 63KB
• gehc-20250930_cal.xml (EX-101.CAL) — 145KB
• gehc-20250930_def.xml (EX-101.DEF) — 328KB
• gehc-20250930_lab.xml (EX-101.LAB) — 798KB
• gehc-20250930_pre.xml (EX-101.PRE) — 597KB
• gehc-20250930_htm.xml (XML) — 2660KB

Forward-Looking Statements

Forward-Looking Statements 3

Financial Information

Part I. Financial Information Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) Condensed Consolidated Statements of Income 4 Condensed Consolidated Statements of Comprehensive Income (Loss) 5 Condensed Consolidated Statements of Financial Position 6 Condensed Consolidated Statements of Changes in Equity 7 Condensed Consolidated Statements of Cash Flows 9 Notes to the Condensed Consolidated Financial Statements (Unaudited) 10 Note 1. Organization and Basis of Presentation 10 Note 2. Revenue Recognition 11 Note 3. Segment Information 12 Note 4. Receivables 14 Note 5. Financing Receivables 14 Note 6. Leases 14 Note 7. Acquisitions, Goodwill, and Other Intangible Assets 15 Note 8. Borrowings 17 Note 9. Postretirement Benefit Plans 18 Note 10. Income Taxes 19 Note 11. Shareholders' Equity 20 Note 12. Financial Instruments and Fair Value Measurements 21 Note 13. Commitments, Guarantees, Product Warranties, and Other Loss Contingencies 25 Note 14. Restructuring Activities 26 Note 15. Earnings Per Share 27 Note 16. Supplemental Financial Information 27 Note 17. Subsequent Events 30 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A")

Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") 31 Trends and Factors Impacting Our Performance 31 Summary of Key Performance Measures 32 Results of Operations 33 Results of Operations – Segments 36 Non-GAAP Financial Measures 37 Liquidity and Capital Resources 41 Recently Issued Accounting Pronouncements 42 Critical Accounting Estimates 42 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 43 Item 4.

Controls and Procedures

Controls and Procedures 43

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 43 Item 1A.

Risk Factors

Risk Factors 43 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 43 Item 3. Defaults Upon Senior Securities 44 Item 4. Mine Safety Disclosures 44 Item 5. Other Information 44 Item 6. Exhibits 44

Signatures

Signatures 45 2 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q 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 our business, financial performance, financial condition, and results of operations, including revenue, revenue growth, profit, taxes, earnings per share, and cash flows; the impacts of macroeconomic and market conditions, including the impact of tariffs and other trade restrictions, and volatility on our business, operations, financial results, and financial position and on supply chains and the world economy; our cost structure; our funding and liquidity; the impacts on our business of manufacturing, sourcing, and supply chain management; the Russia and Ukraine conflict; share repurchases; and risks related to foreign currency exchange, interest rates, and commodity price volatility. These forward-looking statements involve risks and uncertainties, many of which are beyond our control. Factors that could cause our actual results to differ materially from those described in our 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 the Middle East; public health crises, epidemics, and pandemics, and their effects on our 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 our products, services, or so

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Condensed Consolidated Statements of Income (Unaudited) For the three months ended September 30 For the nine months ended September 30 (In millions, except per share amounts) 2025 2024 2025 2024 Sales of products $ 3,375 $ 3,201 $ 9,755 $ 9,454 Sales of services 1,769 1,662 5,172 4,899 Total revenues 5,143 4,863 14,927 14,353 Cost of products 2,270 2,033 6,392 6,045 Cost of services 884 805 2,549 2,378 Gross profit 1,990 2,026 5,987 5,930 Selling, general, and administrative 1,045 1,034 3,114 3,139 Research and development 292 316 937 967 Total operating expenses 1,337 1,350 4,051 4,106 Operating income 653 676 1,936 1,824 Interest and other financial charges – net 111 130 335 383 Non-operating benefit (income) costs ( 75 ) ( 102 ) ( 222 ) ( 306 ) Other (income) expense – net ( 26 ) ( 9 ) ( 124 ) ( 1 ) Income before income taxes 643 658 1,947 1,747 Benefit (provision) for income taxes ( 179 ) ( 168 ) ( 395 ) ( 435 ) Net income 464 490 1,552 1,312 Net (income) loss attributable to noncontrolling interests ( 18 ) ( 19 ) ( 57 ) ( 40 ) Net income attributable to GE HealthCare $ 446 $ 470 $ 1,495 $ 1,272 Earnings per share attributable to GE HealthCare: Basic $ 0.98 $ 1.03 $ 3.27 $ 2.79 Diluted 0.98 1.02 3.26 2.77 Weighted-average number of shares outstanding: Basic 456 457 457 456 Diluted 457 459 458 459 The accompanying notes are an integral part of these condensed consolidated financial statements. 4 Table of Contents Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) For the three months ended September 30 For the nine months ended September 30 (In millions) 2025 2024 2025 2024 Net income attributable to GE HealthCare $ 446 $ 470 $ 1,495 $ 1,272 Net income (loss) attributable to noncontrolling interests 18 19 57 40 Net income 464 490 1,552 1,312 Other comprehensive income (loss): Currency translation adjustments – net of taxes ( 59 ) 177 419 70 Pension