GE Healthcare Technologies Inc (GEHC) shares tumbled 5.56% in pre-market trading on Wednesday, despite reporting better-than-expected third-quarter earnings. The medical technology company's results revealed the significant impact of tariffs on its financial performance and future projections, overshadowing the positive aspects of the report.

For the third quarter, GE Healthcare reported adjusted earnings of $1.07 per share, slightly exceeding analysts' expectations of $1.05. Revenue rose to $5.14 billion, surpassing the forecasted $5.09 billion. However, the company's net income declined to $446 million, or $0.98 per share, compared to $470 million, or $1.02 per share, in the same period last year. The company highlighted that tariff expenses were a major drag on its performance, with an impact of approximately $95 million or $0.16 per share this quarter alone.

Looking ahead, GE Healthcare provided a sobering outlook for 2025, factoring in the approximate tariff impacts of $265 million to Adjusted EBIT and $0.45 to Adjusted EPS. The company narrowed its full-year 2025 Adjusted EPS guidance range, raising the lower end to $4.51 from $4.43, while maintaining the upper end at $4.63. Despite these challenges, GE Healthcare reaffirmed its expectation of 3% organic revenue growth for the year. Investors appear to be reacting negatively to the tariff-related headwinds, which could potentially impact the company's profitability and growth prospects in the near term, outweighing the positive aspects of the earnings report.