GE HealthCare (Nasdaq: GEHC) reported a solid start to fiscal 2025 with revenue of $4.8 billion, representing 3% reported and 4% organic growth year-over-year. Strong execution in the U.S. market and a notable 10% increase in organic orders positioned the company well despite tariff and macroeconomic headwinds. Diluted EPS rose to $1.23 (from $0.81), while adjusted EPS grew to $1.01. Although cash flow from operations fell 40% and free cash flow dropped 64%, GE HealthCare’s strategic clarity was evident in its continued innovation, targeted acquisitions, and the announcement of a $1 billion share repurchase program.

“We are pleased to announce that our Board has authorized a $1 billion share repurchase program. Since our spin-off, we’ve made significant progress strengthening our balance sheet through debt repayment, while also increasing organic and inorganic investment to grow our business,” said Jay Saccaro, Vice President and Chief Financial Officer. “Our capital allocation priority remains focused on investing in our business to accelerate growth, but we believe that a share repurchase program allows us to opportunistically return capital to shareholders and is a demonstration of our view of GE HealthCare’s strong long-term business prospects."

Financial Highlights

CEO Commentary

"We started the year strong with robust revenue, orders, and profit growth, particularly in the U.S.," said Peter Arduini, President and CEO. "With the closing of the Nihon Medi-Physics acquisition and the launch of Flyrcado™, we're accelerating our precision care strategy and long-term innovation pipeline despite a complex global trade environment."

Segment Performance Breakdown

Strategic and Commercial Milestones

1. Nihon Medi-Physics Acquisition Closed: Strengthens global access to next-gen radiopharmaceuticals and supports molecular imaging strategy.

2. U.S. Launch of Flyrcado™: First doses administered; supported by contract manufacturing scale-up and customer expansion.

3. $30M AI-Enabled MRI Deployment: St. Luke’s investment marks progress in precision imaging adoption.

4. AltiX AI.i and Freelium Platform Debuts: Expands AI-assisted cardiology and MRI access in underserved markets.

Guidance Update and Tariff Headwinds

Due to the April 2025 announced reciprocal tariffs and global trade volatility, GE HealthCare adjusted its FY25 guidance:

Tariff Assumption: U.S. reciprocal tariffs effective July 2025; China, Mexico, and Canada tariffs remain unchanged.

Shareholder Value Creation

• $1 Billion Share Repurchase Authorization: Reflects confidence in long-term value creation and capital return flexibility.

• Balance Sheet Strength: Continued deleveraging post-spin with significant room for R&D and M&A reinvestments.

Analyst Takeaways

1. U.S. Demand Is GEHC’s Anchor
GE HealthCare’s U.S. business continues to drive revenue and margin strength. A 10% organic order growth suggests solid H2 momentum, especially in Imaging and Diagnostics.

2. Radiopharma Strategy Gathers Steam
With Flyrcado™ launched and NMP integration underway, GEHC is building a differentiated theranostics pipeline. This enhances its long-term value proposition in nuclear medicine.

3. Tariffs Weigh on Outlook
Guidance revisions clearly signal the impact of geopolitical volatility. However, proactive mitigation efforts and innovation-led margin recovery offer a path forward.

4. Cash Flow Volatility Needs Monitoring
The steep decline in FCF raises some caution, especially amid global headwinds. Yet, the strong EBIT margin and reduced tax/interest expenses offer partial offset.

GE HealthCare’s Q1 FY25 performance underscores a company executing well in a complex environment. Anchored by U.S. strength, a precision diagnostics pipeline, and strategic shareholder returns, GEHC is positioning for long-term value—even as near-term margins and cash flows face pressure from tariffs and global uncertainty.