GE HealthCare posted higher revenues for the fourth quarter and year-end as backlog orders stack up and the impact of an ongoing tariff battle initiated by the White House appears to be decreasing.
Revenues for the quarter jumped 7.1% to $5.7 billion from $5.3 billion for the same period a year ago. Total revenues for the year rose 4.8% to $20.6 billion from $19.7 billion in 2024.
Fourth-quarter adjusted earnings were $1.44 per share, beating Wall Street estimates of $1.43. For the full year, adjusted earnings per share rose 2.2% to $4.59.
The company also released its full-year guidance for 2026, forecasting year-over-year organic growth of between 3% and 4% and an adjusted earnings per share falling in a range of $4.95 to $5.15.
The company said it expects the impact from tariffs to be lower than what it experienced last year. It previously pegged that bite to be around $265 million.
“When tariffs hit, we took action not only to reduce tariff exposure, which is something we spent a lot of energy and effort on, but we also did some self-help cost management across the business,” James Saccaro, GE HealthCare’s chief financial officer and a vice president, said during its earnings call Wednesday, Feb. 4
“Now moving to ’26, we’re going to see many of those things (such as cost management and improved product business) resulting in positive impacts in our numbers again without the drag of incremental tariffs because now tariffs are neutral to positive to our financial performance.”
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As part of its efforts to mitigate the impact of tariffs imposed by the Trump administration, the company trimmed shipments between the U.S. and China to help offset most of its 2025 tariff costs and focus on more local-for-local manufacturing across its 43 international sites.
During the earnings call, the company said it is taking a cautious approach to China this year and expects to see a decline in business there.
“I think it’s a good perspective on how we’re thinking about China early in the year as this prudent approach,” Peter Arduini, president, CEO and director of GE HealthCare, said during the call. “We’re seeing improved commercial execution I think (the company has) pivoted to focus more on how we think about provincial interactions as well as the clinical selling.
The Imaging division reported a 6.6% revenue gain on the year, posting $2.55 billion. Advanced Visualization Solutions tallied gained 5.9% at $1.5 billion, and Pharmaceutical Diagnostics were up 22.3% at $790 million. Patient Care Solutions fell 0.3% to $825 million on the year.
Total orders rose 5.2% organically with a book-to-bill of 1.07 times.
The company currently anticipates it will launch about nine products this year that Arduini described as being the biggest they’ve had in a decade.
“So once we get the right global regulatory approvals, we’ll be able to start bringing those into the order book,” he said. “So from that standpoint, the size of our backlog, I mean, we feel very good where we’re positioned here as we start the year.”
