Al Root

GE HealthCare Technologies reported better-than-expected first-quarter earnings. That's the good news. The bad news is guidance was cut due to the impact of tariffs.

Wednesday morning, GE HealthCare reported first-quarter adjusted earnings per share of $1.01 from sales of $4.8 billion. Wall Street was looking for EPS of 91 cents from sales of $4.7 billion. A year ago, the company reported EPS of 90 cents from sales of $4.7 billion.

"First quarter results reflect strong execution as we start the year with robust revenue, orders, and profit growth, which were driven by strength in the U.S.," said CEO Peter Arduini in a news release. "Regarding the current global trade environment, we are actively driving mitigation actions."

The company can't mitigate all the trade impacts. Full-year 2025 financial guidance moved lower. Sales are still expected to grow 2% to 3% year over year, but the operating profit margins for the year should land at about 14.3%, down from prior guidance of 16.7%. Margins in 2024 were 16.3%.

Earnings per share should land between $3.90 and $4.10 a share, including an 85-cent tariff-related hit. The $4 midpoint is down from the prior midpoint of $4.68.

Wall Street currently projects 2025 EPS of $4.70.

GE HealthCare's assumption in that guidance is that current bilateral U.S.-China tariffs remain in place. The company generates roughly 10% of its sales in China.

Despite the cut, GE HealthCare shares were up 6.8% in premarket trading, while S&P 500 futures were down 0.3%, and Dow Jones Industrial Average futures were up 0.1%.

The starting point is part of the story. Coming into Wednesday trading, GE HealthCare shares were down 23% since the Nov. 5 presidential election. Tariff concerns have weighed on investor sentiment for some time.

For now, a little more detail about tariff costs has provided investors some relief.

Also helping was a new $1 billion share buyback the board just authorized.

Write to Al Root at allen.root@dowjones.com

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April 30, 2025 07:26 ET (11:26 GMT)

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