GE HealthCare Beats Q1 Expectations, Holds Guidance Despite Tariff Headwinds

GE HealthCare Technologies (NASDAQ: GEHC) delivered better-than-expected Q1 revenue, driven by robust U.S. demand and a rebound in elective surgeries—despite mounting global trade tensions tied to President Donald Trump’s renewed tariff policies.

Strong U.S. Demand Offsets Trade Pressure

In its latest quarterly report, GE HealthCare cited record double-digit order growth and earnings expansion powered by higher volumes and operational efficiency. Demand was especially strong in the U.S. medical device market, boosted by a post-pandemic resurgence in elective procedures, particularly among older Americans.

But trade tensions still loom. GE HealthCare acknowledged that tariffs on China, and potentially other nations, could bring additional costs in 2025 if Trump’s reciprocal duties snap back into place after the current 90-day freeze.

Q1 Highlights:

• Organic revenue growth guidance maintained at 2%–3% for FY25.

• Adjusted EPS revised to $3.90–$4.10, down from $4.61–$4.75.

• Tariff-related costs baked into outlook, assuming current levies remain.

CEO Signals Resilience Through Innovation

CEO Peter Arduini emphasized GE HealthCare’s strategic focus on mitigation efforts and long-term innovation. “We continue to see strong customer demand in many of the markets we serve and are well-positioned to drive long-term value,” he said in a statement.

The firm also flagged continued investment in new medical technologies, signaling confidence in future growth despite rising global supply chain pressures.

Tariff Risks Still on the Radar

GE HealthCare joins a growing list of U.S. corporations navigating Trump’s aggressive tariff regime, which has already disrupted planning for global manufacturers. Although the company has not yet pulled guidance, its lowered EPS range signals caution ahead of potential cost spikes from tariff escalation.

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• Dive into GE HealthCare’s performance with the Earnings Historical API for quarterly and annual earnings data.

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Conclusion

GE HealthCare’s strong Q1 suggests that domestic demand can still buffer global uncertainty—for now. With tariff hikes looming, investors will be watching how cost controls, innovation pipelines, and international sales evolve through 2025.