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GEHC momentum is driven by Imaging demand, diagnostics and AI expansion.
GEHC leverages global reach, innovation and efficiency to sustain growth.
GE HealthCare Technologies (GEHC - Free Report) posted a solid second-quarter 2025 earnings report, underscoring its ability to deliver growth amid a challenging macro backdrop. Revenues rose 7% year over year to $5.25 billion, driven by strength in Imaging, Patient Care Solutions and Pharmaceutical Diagnostics. Adjusted EPS of 97 cents reflected stable execution despite FX pressures and inflationary headwinds.
Management reaffirmed its full-year outlook, citing confidence in operational momentum, productivity initiatives and expanding margins. With accelerating innovation and steady global demand, GE HealthCare remains well-positioned for both near and long-term growth.
GEHC shares have declined 5.4% so far this year against the industry's growth of 6%. THe S&P 500 Index has gained 8.8% in that period.
Image Source: Zacks Investment Research
Short-Term Growth Drivers
Imaging and Equipment Demand: GEHC’s Imaging segment led to growth in the second quarter, with mid-single-digit revenue expansion supported by robust demand for CT, MR and ultrasound systems. In particular, the rollout of the Revolution Apex platform in CT and the continued adoption of the LOGIQ ultrasound line underpinned order momentum. Hospitals globally are refreshing equipment fleets to meet rising patient volumes, and GEHC’s innovation pipeline is capturing market share across developed and emerging markets.
Productivity and Margin Gains: Management highlighted productivity gains as a core near-term driver. The company achieved nearly 150 basis points of adjusted operating margin expansion year over year, fueled by sourcing efficiencies, lean manufacturing initiatives and price realization. Supply-chain reliability has improved materially compared to 2023, reducing logistics costs and supporting on-time customer delivery. These operational improvements give GEHC greater flexibility to reinvest in R&D and commercial expansion while sustaining EPS growth.
Pharmaceutical Diagnostics Momentum: The Pharmaceutical Diagnostics segment grew at a double-digit pace, benefiting from strong contrast-media demand and geographic expansion. In the second quarter, the company completed production capacity upgrades that are already alleviating prior constraints. With procedural recovery continuing in cardiovascular and oncology, diagnostic imaging volumes are driving higher utilization of GEHC’s contrast agents. Near-term tailwinds in this segment reinforce management’s raised confidence in full-year revenue growth.
Long-Term Growth Drivers
AI and Digital Health Integration: A cornerstone of GEHC’s long-term strategy is embedding artificial intelligence into imaging and monitoring workflows. The company’s Edison AI platform now supports over 100 applications, enhancing diagnostic accuracy, clinician productivity and patient outcomes. Management emphasized that hospitals increasingly view GEHC not just as an equipment provider, but as a partner in digital transformation. Over time, recurring revenues from AI-enabled solutions and data integration should expand margins and create durable growth.
Global Expansion and Emerging Markets: International markets continue to be a powerful driver. Second-quarter results saw double-digit growth in Asia-Pacific and strong momentum in Latin America, supported by government-led healthcare infrastructure investments. Emerging markets remain underpenetrated in advanced imaging modalities, offering a multi-year runway for adoption. GEHC’s localized R&D and manufacturing hubs in India and China are enhancing competitiveness, enabling the company to serve price-sensitive segments without compromising innovation.
Theranostics and Precision Medicine: GEHC is investing in theranostics and precision medicine solutions. Collaborations with pharmaceutical partners in radiopharmaceutical development position the company to capture growth at the intersection of diagnostics and therapy. Management emphasized its pipeline of next-generation tracers and partnerships with oncology centers as strategic assets for the next decade. As demand for personalized treatment accelerates globally, GEHC’s integrated diagnostics portfolio provides a differentiated competitive edge.
GEHC's Sales & EPS Estimates
Image Source: Zacks Investment Research
Challenges
Foreign Exchange and Macro Pressures: A strong U.S. dollar weighed on the quarterly top line by nearly 200 basis points. While operational execution offset much of the impact, persistent FX headwinds could continue to affect results in the second half of 2025. Similarly, inflationary pressures in raw materials and labor remain an industry-wide challenge. Although pricing actions have been successful to date, further cost escalation could pressure margins.
Competitive Landscape: GEHC operates in a highly competitive medtech landscape, facing strong rivals in imaging and diagnostics. Philips (PHG - Free Report) and Siemens Healthineers continue to advance in AI-enabled imaging, while niche players are disrupting adjacent areas like handheld ultrasound. Sustaining differentiation through innovation and commercial execution is critical to maintaining market share, particularly in emerging markets where price sensitivity is higher.
Execution Risk in Transformation: The company’s ongoing productivity initiatives and digital transformation carry execution risk. Integrating AI into clinical workflows at scale requires robust regulatory approvals, clinician adoption, and interoperability with hospital IT systems. Any delay in implementation could slow the pace of margin expansion. In addition, while supply-chain reliability has improved, geopolitical disruptions remain a potential risk to global operations.
Competition Update
Abbott (ABT - Free Report) delivered a standout second-quarter performance, with sales up 7.4% and organic growth reaching 6.9% (or 7.5% excluding COVID-19 testing). Abbott’s adjusted EPS was $1.26, slightly ahead of expectations. However, Abbott lowered its full-year outlook despite strong medical device demand.
Philips posted modest second-quarter results, with comparable order intake rising 6% and overall group comparable sales going up roughly 1%. Philips’ EBIDTA margin improved significantly (130-160 bps across business units), reflecting innovation and productivity gains. Philips also raised its full-year profit guidance, citing tariff mitigation and cost efficiency as key drivers.
Boston Scientific (BSX - Free Report) delivered a standout quarter with second-quarter 2025 net sales of $5.06 billion, rising 22.8% year over year and surpassing expectations. Its cardiovascular segment posted particularly strong organic gains, driven by 117% U.S. growth in Farapulse and 28% global growth in Watchman. Boston Scientific raised its annual profit and revenue guidance, buoyed by momentum in high-margin heart rhythm devices.
GE HealthCare’s second-quarter 2025 results reinforced its ability to balance growth, innovation and operational discipline. Near-term drivers such as Imaging demand, margin expansion and Pharmaceutical Diagnostics strength provide immediate momentum, while long-term opportunities in AI, theranostics and global expansion chart a compelling trajectory.
Though challenges remain from FX, competition and execution complexity, GEHC’s diversified portfolio and improving fundamentals make it a standout in medtech. With a clear pathway to sustainable growth and value creation, GEHC is well-suited for investors seeking exposure to healthcare technology’s next wave. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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GEHC Positioned for Growth With AI, Global Expansion and Margins
Key Takeaways
GE HealthCare Technologies (GEHC - Free Report) posted a solid second-quarter 2025 earnings report, underscoring its ability to deliver growth amid a challenging macro backdrop. Revenues rose 7% year over year to $5.25 billion, driven by strength in Imaging, Patient Care Solutions and Pharmaceutical Diagnostics. Adjusted EPS of 97 cents reflected stable execution despite FX pressures and inflationary headwinds.
Management reaffirmed its full-year outlook, citing confidence in operational momentum, productivity initiatives and expanding margins. With accelerating innovation and steady global demand, GE HealthCare remains well-positioned for both near and long-term growth.
GEHC shares have declined 5.4% so far this year against the industry's growth of 6%. THe S&P 500 Index has gained 8.8% in that period.
Image Source: Zacks Investment Research
Short-Term Growth Drivers
Imaging and Equipment Demand: GEHC’s Imaging segment led to growth in the second quarter, with mid-single-digit revenue expansion supported by robust demand for CT, MR and ultrasound systems. In particular, the rollout of the Revolution Apex platform in CT and the continued adoption of the LOGIQ ultrasound line underpinned order momentum. Hospitals globally are refreshing equipment fleets to meet rising patient volumes, and GEHC’s innovation pipeline is capturing market share across developed and emerging markets.
Productivity and Margin Gains: Management highlighted productivity gains as a core near-term driver. The company achieved nearly 150 basis points of adjusted operating margin expansion year over year, fueled by sourcing efficiencies, lean manufacturing initiatives and price realization. Supply-chain reliability has improved materially compared to 2023, reducing logistics costs and supporting on-time customer delivery. These operational improvements give GEHC greater flexibility to reinvest in R&D and commercial expansion while sustaining EPS growth.
Pharmaceutical Diagnostics Momentum: The Pharmaceutical Diagnostics segment grew at a double-digit pace, benefiting from strong contrast-media demand and geographic expansion. In the second quarter, the company completed production capacity upgrades that are already alleviating prior constraints. With procedural recovery continuing in cardiovascular and oncology, diagnostic imaging volumes are driving higher utilization of GEHC’s contrast agents. Near-term tailwinds in this segment reinforce management’s raised confidence in full-year revenue growth.
Long-Term Growth Drivers
AI and Digital Health Integration: A cornerstone of GEHC’s long-term strategy is embedding artificial intelligence into imaging and monitoring workflows. The company’s Edison AI platform now supports over 100 applications, enhancing diagnostic accuracy, clinician productivity and patient outcomes. Management emphasized that hospitals increasingly view GEHC not just as an equipment provider, but as a partner in digital transformation. Over time, recurring revenues from AI-enabled solutions and data integration should expand margins and create durable growth.
Global Expansion and Emerging Markets: International markets continue to be a powerful driver. Second-quarter results saw double-digit growth in Asia-Pacific and strong momentum in Latin America, supported by government-led healthcare infrastructure investments. Emerging markets remain underpenetrated in advanced imaging modalities, offering a multi-year runway for adoption. GEHC’s localized R&D and manufacturing hubs in India and China are enhancing competitiveness, enabling the company to serve price-sensitive segments without compromising innovation.
Theranostics and Precision Medicine: GEHC is investing in theranostics and precision medicine solutions. Collaborations with pharmaceutical partners in radiopharmaceutical development position the company to capture growth at the intersection of diagnostics and therapy. Management emphasized its pipeline of next-generation tracers and partnerships with oncology centers as strategic assets for the next decade. As demand for personalized treatment accelerates globally, GEHC’s integrated diagnostics portfolio provides a differentiated competitive edge.
GEHC's Sales & EPS Estimates
Image Source: Zacks Investment Research
Challenges
Foreign Exchange and Macro Pressures: A strong U.S. dollar weighed on the quarterly top line by nearly 200 basis points. While operational execution offset much of the impact, persistent FX headwinds could continue to affect results in the second half of 2025. Similarly, inflationary pressures in raw materials and labor remain an industry-wide challenge. Although pricing actions have been successful to date, further cost escalation could pressure margins.
Competitive Landscape: GEHC operates in a highly competitive medtech landscape, facing strong rivals in imaging and diagnostics. Philips (PHG - Free Report) and Siemens Healthineers continue to advance in AI-enabled imaging, while niche players are disrupting adjacent areas like handheld ultrasound. Sustaining differentiation through innovation and commercial execution is critical to maintaining market share, particularly in emerging markets where price sensitivity is higher.
Execution Risk in Transformation: The company’s ongoing productivity initiatives and digital transformation carry execution risk. Integrating AI into clinical workflows at scale requires robust regulatory approvals, clinician adoption, and interoperability with hospital IT systems. Any delay in implementation could slow the pace of margin expansion. In addition, while supply-chain reliability has improved, geopolitical disruptions remain a potential risk to global operations.
Competition Update
Abbott (ABT - Free Report) delivered a standout second-quarter performance, with sales up 7.4% and organic growth reaching 6.9% (or 7.5% excluding COVID-19 testing). Abbott’s adjusted EPS was $1.26, slightly ahead of expectations. However, Abbott lowered its full-year outlook despite strong medical device demand.
Philips posted modest second-quarter results, with comparable order intake rising 6% and overall group comparable sales going up roughly 1%. Philips’ EBIDTA margin improved significantly (130-160 bps across business units), reflecting innovation and productivity gains. Philips also raised its full-year profit guidance, citing tariff mitigation and cost efficiency as key drivers.
Boston Scientific (BSX - Free Report) delivered a standout quarter with second-quarter 2025 net sales of $5.06 billion, rising 22.8% year over year and surpassing expectations. Its cardiovascular segment posted particularly strong organic gains, driven by 117% U.S. growth in Farapulse and 28% global growth in Watchman. Boston Scientific raised its annual profit and revenue guidance, buoyed by momentum in high-margin heart rhythm devices.
GE HealthCare Technologies Inc. Price
GE HealthCare Technologies Inc. price | GE HealthCare Technologies Inc. Quote
Conclusion
GE HealthCare’s second-quarter 2025 results reinforced its ability to balance growth, innovation and operational discipline. Near-term drivers such as Imaging demand, margin expansion and Pharmaceutical Diagnostics strength provide immediate momentum, while long-term opportunities in AI, theranostics and global expansion chart a compelling trajectory.
Though challenges remain from FX, competition and execution complexity, GEHC’s diversified portfolio and improving fundamentals make it a standout in medtech. With a clear pathway to sustainable growth and value creation, GEHC is well-suited for investors seeking exposure to healthcare technology’s next wave. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.