The 5 Most Interesting Analyst Questions From GE HealthCare's Q1 Earnings Call
Is now the time to buy GEHC? Find out in our full research report (it's free).
Revenue: $4.78 billion vs analyst estimates of $4.66 billion (2.8% year-on-year growth, 2.5% beat)
Adjusted EPS: $1.01 vs analyst estimates of $0.91 (10.6% beat)
Adjusted EBITDA: $826.9 million vs analyst estimates of $794.4 million (17.3% margin, 4.1% beat)
Management lowered its full-year Adjusted EPS guidance to $4 at the midpoint, a 14.5% decrease
Operating Margin: 13.2%, up from 11.6% in the same quarter last year
Organic Revenue rose 4.1% year on year (-0.5% in the same quarter last year)
Market Capitalization: $32.96 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Larry Biegelsen (Wells Fargo) asked about the timing and magnitude of tariff impacts and the pace of mitigation. CFO Jay Saccaro explained that most mitigation will be realized in the second half of the year and further improvements are targeted for 2026.
Jason Bednar (Piper Sandler) inquired whether tariff mitigation actions were accelerated from long-range plans. CEO Peter Arduini clarified that while some actions were advanced, the broader margin and growth outlook remains unchanged.
Vijay Kumar (Evercore ISI) questioned the proportion of tariff headwinds tied to U.S.-China trade and the potential upside if tariffs are eased. Saccaro detailed that bilateral tariffs account for the majority of the impact and that a rollback could deliver substantial upside to earnings.
Robbie Marcus (JPMorgan) requested updates on Flyrcado's launch and potential anti-dumping risks in China. Arduini confirmed Flyrcado is on track and stated that recent anti-dumping investigations are not expected to materially impact the business.
Joanne Wuensch (Citi) probed the durability of hospital capital spending and the timeline for photon counting CT approval. Saccaro reported continued strength in U.S. and European demand, while Arduini reiterated that photon counting CT remains on schedule for regulatory submission.
In the coming quarters, the StockStory team will closely monitor (1) the pace and effectiveness of GE HealthCare's tariff mitigation strategies, (2) progress on new product rollouts, including Flyrcado and photon counting CT, and (3) sustainability of order growth and backlog conversion, particularly in key markets like China and the U.S. Updates on supply chain adjustments and the impact of shifting trade policy will also be important indicators of execution.
GE HealthCare currently trades at $71.99, up from $68.09 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it's free).
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