GE HealthCare stock surges 12% on earnings beat boosted by tariff refunds
In the second quarter, GE HealthCare announced a net income of $561 million, an increase from $486 million the previous year, fueled by strong demand for imaging devices and pharmaceutical diagnostics, along with tariff refunds. The company's revenue reached $5.3 billion, reflecting a 5.7% rise, with organic revenue increasing by 3.5%. Revenue from Advanced Imaging Solutions grew by 7.9%, while Pharmaceutical Diagnostics surged by 15.6%. However, Patient Care Solutions saw a decline of 13.3%. Adjusted EPS stood at $1.13, surpassing the analyst forecast of $1.04. The results included $129 million from tariff refunds. Total orders increased organically by 11.1%, with a book-to-bill ratio of 1.15 and a backlog of $23.9 billion. CEO Peter Arduini reiterated the guidance for 2026, projecting organic revenue growth of 3.0% to 4.0%, adjusted EPS between $4.80 and $5.00, and free cash flow of around $1.6 billion.
Key facts
- GE HealthCare second-quarter net income $561 million, up from $486 million year earlier
- Revenue $5.3 billion, up 5.7% year-over-year
- Adjusted EPS $1.13, beating estimate of $1.04
- Included $129 million net income benefit from tariff refunds under International Emergency Economic Powers Act
- Advanced Imaging Solutions revenue up 7.9%, Pharmaceutical Diagnostics up 15.6%, Patient Care Solutions down 13.3%
- Adjusted EBIT margin 14.2%, contracting 40 basis points
- Total orders grew 11.1% organically; backlog $23.9 billion (record)
- Company reviewing strategic options for Patient Care Solutions
Entities
Institutions
- GE HealthCare
- LSEG
- Reuters
Locations
- Middle East
Sources
- Quartz —