GE HealthCare's Strong Q1 Took Back Seat To Tariffs, Analyst Sees 2026 Tariff Impact Less Than 2025

On Wednesday, GE HealthCare GEHC reported first-quarter 2025 adjusted EPS of $1.01, which beat the consensus of 91 cents. It was up from 90 cents a year ago.

The company reported sales of $4.78 billion, beating the consensus of $4.66 billion.

GE HealthCare updated 2025 full-year guidance to include the estimated impact of announced tariffs. It reaffirmed organic revenue growth of 2% to 3% year over year for 2025.

The company expects an adjusted EBIT margin of 14.2% to 14.4%, down from its prior guidance of 16.7% to 16.8%.

BofA Securities writes GE HealthCare’s strong Q1 and record 10% organic order growth understandably took a back seat to tariffs.

Analyst Craig Bijou writes, “The 2025 tariff impact was larger than expected, but GEHC appears to have moved quickly and aggressively to mitigate the impact, already offsetting more than 50% of the gross headwind. Notably, GEHC expects the 2026 tariff impact to be less than the 2025 because of ongoing and future mitigation efforts.”

The analyst writes that GE HealthCare expects the 2026 tariff impact to be less than 2025, implying an additional $300 million or more offsets, assuming a $800 million annualized tariff run rate.

It’s unclear which tariffs might apply to Pharmaceutical Diagnostics (PDx) products; the company hasn’t factored in any impact from them. However, many PDx products are likely made in Europe, which could help them avoid the highest tariffs. Additionally, PDx has strong pricing power, which means it may be able to pass any tariff-related costs on to customers.

• BofA reiterates a Neutral rating, given tariff uncertainty, despite the strong start to 2025, and lowers the price target from $97 to $82.
• Wells Fargo maintains a rating for GE HealthCare as Overweight, lowering the price target from $103 to $89.
• Citigroup maintains a Buy rating on GE HealthCare, lowering the price target from $105 to $86.
• Evercore ISI maintains a rating of Outperform for GE HealthCare, lowering the price target from $96 to $85.

Price Action: GEHC stock is down 3.18% at $68.09 at the last check Thursday

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