GE HealthCare Shatters Expectations as Tariff Relief Fuels Upgraded Profit Forecast

Wall Street braces for another corporate earnings surprise—this time from an unlikely source. GE HealthCare just pulled off a classic 'beat-and-raise' that'd make even crypto traders blush.

Defying Gravity (and Tariffs)

The medtech spinout crushed estimates, proving even legacy industrials can moon when supply chain pressures ease. Who needs blockchain when old-school tariff arbitrage still prints money?

Guidance Goes Brrr

Management's upgraded outlook suggests the profit engine's just warming up—analysts now scrambling to update models that assumed perpetual headwinds. Funny how 'transitory' cost pressures become permanent... until they're not.

Another quarter proving that in healthcare, the house always wins. Now if only they'd accept crypto for those MRI machines.

Key Takeaways

• GE HealthCare beat estimates for the second quarter on Wednesday and raised its full-year profit forecast.
• However, the outlook is still below where it was at the start of the year due to the expected tariff impact.
• Sales rose across all four of GE HealthCare's segments in the quarter.

GE HealthCare (GEHC) on Wednesday reported better second-quarter results than analysts had expected and lifted its outlook for the full year.

The former General Electric division said it generated $5 billion in revenue and earned $1.06 per share, each up from the same time a year ago and better than the analyst consensus compiled by Visible Alpha. Sales ROSE across all four of GE HealthCare's segments in the quarter.

The company said it now expects organic revenue growth of about 3% this year, narrowed from its previous range of 2% to 3%. Adjusted earnings per share are now forecast from $4.43 to $4.63, up from $3.90 to $4.10, with the new range including an expected headwind from tariffs of about 45 cents, down from 85 cents previously.

While the tariff impact is smaller than what GE HealthCare expected last quarter, the company's adjusted EPS range is still below where it was at the start of the year. GE HealthCare topped estimates last quarter and announced a new stock buyback plan, outweighing the lowered profit forecast.

Each of the other two former GE divisions, GE Aerospace (GE) and GE Vernova (GEV), beat estimates in their own second-quarter results earlier this month.

Despite the solid results, GE HealthCare shares were down about 2% shortly ahead of markets opening.