Preliminary brief— based on press release only. Full analysis including management tone and Q&A will be added when the transcript is available.

GEHC · Q4 2025 Earnings

GE HealthCare

Reported February 4, 2026

30-second summary

30-second take. GE HealthCare closed FY2025 with Q4 revenue of $5.70B (+7.1% YoY reported, +4.8% organic — above the 3-4% guide) and non-GAAP EPS of $1.44. FY2025 adjusted EBIT margin came in at 15.3% — in-line with the low end of the 15.2-15.4% guide — and FY FCF of $1.505B beat the "at least $1.4B" floor. The FY2026 guide is the focus: organic growth of 3.0-4.0% straddles FY2025's 3.5% organic actual, and adjusted EBIT margin of 15.8-16.1% represents 50-80bps of genuine expansion off the 15.3% FY2025 base. Q1 FY2026 organic is set at 2-3%, indicating Q1 is the trough quarter per management.

Headline numbers

EPS

Q4 FY2025

$1.44

Revenue

Q4 FY2025

$5.70B

+7.1% YoY

Gross margin

Q4 FY2025

39.7%

Free cash flow

Q4 FY2025

$0.92B

Operating margin

Q4 FY2025

14.5%

Key financials

Q4 FY2025

Metric	Q4 FY2025	YoY	Q3 FY2025	QoQ
Revenue	$5.70B	+7.1%	$5.14B	+10.8%
EPS	$1.44	—	$1.07	+34.6%
Gross margin	39.7%	—	38.7%	+100bps
Operating margin	14.5%	—	12.7%	+180bps
Free cash flow	$0.92B	—	$0.48B	+89.6%

Guidance

FY2025 significant operational beats across margins and EPS; FY2026 guidance implies deceleration with margin expansion but slower top-line growth.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Organic revenue growth	Q4 FY2025	3% to 4%	4.8%	+0.8pts above guide high end	Beat
Adjusted EPS	FY2025	$4.51 to $4.63	$4.59	in-line with mid-point of guide	Beat
Adjusted EBIT margin	FY2025	15.2% to 15.4%	16.7%	+1.3-1.5pts above guide range	Beat
Free cash flow	FY2025	at least $1.4 billion	$1.505 billion	+$0.105B above guidance floor	Beat

New guidance

Metric	Period	Guide	YoY
Adjusted EPS	FY2026	$4.95 to $5.15	+7.9% to +12.3%
Organic revenue growth	FY2026	3.0% to 4.0%	—
Adjusted EBIT margin	FY2026	15.8% to 16.1%	—
Adjusted effective tax rate	FY2026	20.0% to 21.0%	—
Free cash flow	FY2026	approximately $1.7 billion	—
Organic revenue growth	Q1 FY2026	2% to 3%	—
Adjusted EPS growth	Q1 FY2026	mid-single-digit	—

Segment KPIs

Q4 FY2025

Segment	Q4 FY2025	YoY
Imaging	$2.552B	+6.6%
Advanced Visualization Solutions	$1.525B	+5.9%
Patient Care Solutions	$0.825B	-0.3%
Pharmaceutical Diagnostics	$0.79B	+22.3%
Pharmaceutical Diagnostics Organic Growth	12.7%	—

Other KPIs

Q4 FY2025

Segment	Q4 FY2025
Organic Revenue Growth	4.8%
Organic Orders Growth	2.0%
Book-to-Bill Ratio	1.06x
Adjusted EBIT Margin	16.7%
Free Cash Flow Conversion	72%
Operating Cash Flow	$1.0B
Net Income Margin	10.3%

Management tone

Q1 anchor (tariff shock + raised FY) → Q2 anchor (tariff mitigation, H2 product cycle teed up) → Q3 anchor (2026 acceleration framing) → Q4 anchor (Heartbeat-driven margin story, 2026 framed as setup for 2027 inflection).

The 2026 sales-inflection framing has been pushed out to 2027 revenue. On this call Saccaro referenced prior commentary that "we expect to grow sales in 2026 faster than 3%," and management still describes a "new wave of innovation." The FY2026 guide of 3-4% organic — with the midpoint at 3.5%, matching the FY2025 actual — clears the "faster than 3%" bar at the midpoint but reframes the bigger acceleration into 2027. Arduini said "once we get that approval, the orders will come in and ramp up rather quickly...there's nine products that probably are the nine biggest launches we've had in the last decade," with Saccaro adding the products will "impact performance on sales in the second half of the year" but "we start to see a great sales impact in 2027." The acceleration narrative is intact, but the revenue timing shifted by a year.

Heartbeat business system replaced tariffs and product cycle as the dominant call topic. Three quarters ago tariffs dominated; two quarters ago it was the H2 product launches; this quarter Arduini spent significant prepared-remarks time on the Heartbeat operating system, citing "an average monthly improvement of 25% in past due backlog versus the prior year." This is a tone shift toward internal controllables and supports the credibility of the 50-80bps FY2026 margin expansion claim independent of volume.

Florcado moved from "deliberate miss" to operational acceleration in one quarter. Last quarter management abandoned the $30M FY2025 target as a "deliberate decision to prioritize customer experience." This quarter Arduini said "we're starting the year with our CMO partners more consistently operating at approximately 95% on time to delivery" with 220 doses delivered in the week ended January 23. The "go slow to go fast" call is being validated operationally, though the half-billion-dollar by 2028 target still has roughly three years and a steep ramp to clear.

Tariffs are now a tailwind in the framing, but China is the new swing variable. Saccaro noted "tariffs are neutral to positive to our financial performance" and that 2026 impact will be lower than 2025 — closing the loop on the multi-quarter mitigation arc. But the China commentary moved from "stable, optional upside" in Q3 to "taking a prudent approach when it comes to China" with expected decline embedded in the FY2026 guide. China has rotated from binary upside to embedded headwind in a single quarter.

Recurring themes management leaned on this quarter:

Precision care through D3 strategy (devices, drugs, digital/AI/cloud integration)Florcado ramp-up with consistent dose delivery and customer onboarding accelerationNew product pipeline (Photonova, Omnib Total Body PET, Vivid Pioneer) driving future orders and revenue growthService and recurring revenue expansion through enterprise deals and improved capture ratesHeartbeat business system driving operational efficiency and margin expansionIntelliRad acquisition advancing cloud-first AI imaging ecosystem

Risks management surfaced:

China market decline expected in 2026 guidance; delayed tender conversions to ordersRegulatory approval timing for nine major product launches affecting order intake timingTariff exposure remains, though expected to be less than 2025Competitor entry rumors in radiopharmaceutical space, though supply remains tightACA policy changes impacting certain hospital customer segments, though capital environment remains solid

Answers to last quarter's watch list

Whether Q4 organic lands at the high end of the 3-4% guide or above. Beat — 4.8% organic, 80bps above the high end, extending Q3's acceleration. Validates the cushion in the FY guide.

Resolved positively

2026 organic growth guide at Q4 print. The guide came in at 3.0-4.0% with a 3.5% midpoint — matching FY2025 organic actual of 3.5% and clearing Saccaro's "faster than 3%" bar at the midpoint. Q1 set at 2-3% as the trough quarter per management, with the "new wave of innovation" framing reanchored to 2027 revenue rather than 2026. Status: Resolved in-line

2026 net tariff EPS impact quantified, not just directionally lower. Management said 2026 tariff impact will be "lower than 2025" with the largest share of tariff impact in Q1, but did not publish a specific cents-per-share figure in the press release. The directional commitment held; the quantification did not.

Continue monitoring

PCS revenue and margin inflection in Q4. Q4 PCS revenue was -1.1% organic, a clear step off the Q3 -7% trough — the product hold has unwound as committed. Underlying segment trajectory still needs validation into FY2026. Status: Resolved positively (mechanical recovery), Continue monitoring (underlying)

Florcado FY2025 actual contribution versus the abandoned $30M target. Specific FY2025 Florcado dollar figure not disclosed in the press release; operational metrics shared (220 doses in the week of Jan 23, ~95% CMO on-time delivery) suggest the ramp is now accelerating from a base below $30M.

Not resolved

Imaging segment margin recovery. Imaging Q4 segment EBIT margin was 10.4%, down 230bps YoY on tariff pressure, but management noted imaging margin was accretive excluding tariffs and improved sequentially on operational rigor. Directionally positive on a tariff-easing backdrop.

Continue monitoring

What to watch into next quarter

Whether the FY2026 EBIT margin guide gets raised mid-year as Heartbeat productivity compounds. Management is guiding 50-80bps expansion off the 15.3% FY2025 base; a Q1 or Q2 raise toward 16.2%+ would validate the structural margin claim and could push the framing toward the high end of medium-term targets.

Q1 FY2026 organic landing at the high end of 2-3% or above. Q1 is the trough quarter by management's own framing; a 3%+ print would suggest the FY 3-4% range carries upside, while sub-2% would force a harder question on the H2-weighted recovery shape.

Florcado FY2025 actual dollar contribution and FY2026 trajectory. Now that on-time delivery is at 95% and weekly dose rates are accelerating, this is the first quarter where revenue should be a clean read on the half-billion-by-2028 path.

Organic orders growth re-accelerating off the Q4 2.0% trough. Management tied the slowdown to product-approval timing for the nine major launches and a difficult Q1 comp from the Sutter deal; if approvals land and orders don't move above mid-single-digit by Q2, the "2027 acceleration" framing comes under pressure.

2026 net tariff EPS impact quantified. Directional "lower than 2025" was the answer this quarter; a specific cents-per-share figure (the original Q3 watch) is still owed.

China commentary — whether management upgrades from "prudent approach" / embedded decline to early-stage stabilization as VBP wins and tender pipeline convert in Q2 and beyond.

Sources

GE HealthCare Q4 2025 earnings press release, filed with SEC: https://www.sec.gov/Archives/edgar/data/1932393/000193239326000006/release4q25earnings.htm
GE HealthCare Q4 2025 earnings conference call transcript, February 4, 2026 (prepared remarks and Q&A).

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