GE HealthCare Technologies (GEHC) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2025 results, with double-digit organic growth in Pharmaceutical Diagnostics and solid growth in Imaging and Advanced Visualization Solutions, especially in the U.S. and EMEA.

• Record backlog of $21.8 billion, up $2 billion year-over-year, and book-to-bill ratios above 1.0x, reflecting healthy demand and commercial execution.

• Advanced innovation pipeline with major product launches, regulatory progress, and proprietary Heartbeat business system, improving delivery and reducing past due backlog by ~25% YoY.

• Service business and recurring revenue expanded, supported by large enterprise deals, new product introductions, and strategic acquisitions including Intelerad to enhance digital and SaaS offerings.

• Net income margin was 10.3% in Q4 and 10.1% for the year; adjusted EBIT margin was 16.7% in Q4 and 15.3% for the year.

Financial highlights

• Q4 2025 revenue: $5.7 billion, up 7.1% year-over-year (4.8% organic); full-year revenue: $20.6 billion, up 4.8% (3.5% organic).

• Q4 adjusted EBIT: $950 million (16.7% margin, down 200 bps); full-year adjusted EBIT: $3.2 billion (15.3% margin, down 100 bps).

• Adjusted EPS: $1.44 in Q4 (down $0.01), $4.59 for the year (up $0.10).

• Free cash flow: $916 million in Q4 (up $105 million), $1.5 billion for the year (72% conversion).

• Tariffs impacted EBIT by $245 million and EPS by $0.43 for the year; Q4 impact ~$100 million, though impacts were better than anticipated.

Outlook and guidance

• 2026 organic revenue growth expected at 3%-4%, with cautious outlook on China.

• Adjusted EBIT margin guidance: 15.8%-16.1%, reflecting 50-80 bps expansion; adjusted EPS expected at $4.95-$5.15, up 7.9%-12.3%.

• Free cash flow projected at ~$1.7 billion for 2026, up 13%.

• Largest tariff impact expected in Q1 2026, with mitigation actions ongoing and overall lower impact than 2025.

• Midterm targets reaffirmed: mid-single-digit revenue growth and high teens to 20%+ EBITDA margin.