GE HealthCare's earnings soar while tariff impact looms large

GE HealthCare, a leading global health technology company, posted its first-quarter financial results in April 2025. The company reported a revenue of $4.78 billion, marking a 3% increase from the same period in the previous year. Moreover, it achieved an adjusted earnings per share of $1.01, exceeding analysts' expectations of 91 cents per share. However, despite these strong financial results, GE HealthCare announced a significant downward adjustment to its full-year earnings projections. This decision was primarily motivated by the adverse impacts of tariffs imposed by the Trump administration, which have created challenges for many U.S.-based corporations engaged in international trade. GE HealthCare's CEO, Peter Arduini, mentioned that the company has conservatively assumed the bilateral tariffs between the U.S. and China would account for 75% of the company's total net tariff impact, resulting in the annual earnings forecast being revised downwards by approximately 13% to 9%. The substantial presence of GE HealthCare in the Chinese market has been particularly affected by these tariffs, as the cumulative tariffs on Chinese goods by the U.S. have reached as high as 245%. Arduini indicated that the company is actively implementing mitigation strategies to navigate the current global trade environment, and despite the tariff challenges, he emphasized that there is still strong customer demand in various markets, which positions GE HealthCare well for future growth and innovation.