GE HealthCare lowers 2025 profit forecast amid escalating tariff pressures

USA — GE HealthCare Technologies has revised its full-year adjusted earnings per share (EPS) forecast for 2025, citing significant impacts from escalating global trade tensions and tariffs.

The company now anticipates adjusted EPS between US $3.90 and US $4.10, down from the previous estimate of US $4.61 to US $4.75. This adjustment reflects an anticipated US $0.85 per share impact due to new and existing tariffs. ​

The downward revision is attributed to a series of tariff measures implemented by the U.S. government, particularly targeting imports from China, Mexico, and Canada.

These tariffs have increased the cost of raw materials and components essential for GE HealthCare’s medical devices.

Additionally, reciprocal tariffs imposed by other countries have further strained the company’s international operations. ​

China, a significant market for GE HealthCare, accounting for approximately 12% of its revenue, has also introduced retaliatory tariffs and initiated anti-dumping investigations into U.S. medical equipment, including CT tubes.

These actions have compounded the challenges faced by the company in maintaining its profitability in the region. ​

Financial performance and strategic responses

Despite the challenging trade environment, GE HealthCare reported a strong first quarter, with adjusted EPS of US $1.01 and a 2.7% year-over-year revenue increase to US $4.78 billion, surpassing analyst expectations. ​

In response to the tariff pressures, CEO Peter Arduini stated that the company is actively implementing mitigation strategies, including supply chain adjustments and cost management initiatives.

He emphasized continued strong customer demand and the company’s commitment to investing in innovation to drive long-term value. ​

Additionally, GE HealthCare’s Board of Directors has authorized a US $1 billion share repurchase program, reflecting confidence in the company’s financial health and future prospects. ​

Industry-wide implications

GE HealthCare’s challenges are indicative of broader issues facing the medical device industry amid global trade disputes.

Other major medical technology firms, such as Johnson & Johnson and Boston Scientific, have also reported potential financial impacts due to the current tariff landscape. ​

Analysts suggest that while some relief may come from potential tariff suspensions, particularly from China on medical equipment, the overall trade environment remains uncertain.

Companies with significant international exposure are advised to remain vigilant and adaptable to navigate the evolving trade dynamics.