GE Healthcare Technologies Inc (GEHC) shares tumbled 5.55% in pre-market trading on Wednesday following the release of its third-quarter earnings report and updated outlook for 2025. The medical technology company's results revealed the significant impact of tariffs on its financial performance and future projections.

The company reported a decline in third-quarter net income to $446 million, or $0.98 per share, compared to $470 million, or $1.02 per share, in the same period last year. While adjusted earnings of $1.07 per share slightly exceeded analysts' expectations of $1.05, the company highlighted that tariff expenses were a major drag on its performance. Revenue for the quarter rose to $5.14 billion, surpassing the forecasted $5.09 billion.

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.