(Reuters) -GE HealthCare Technologies raised annual profit forecast on Wednesday, as the medical device maker expects a smaller hit from tariffs.
The company expects adjusted profit of $4.43 to $4.63 per share for 2025, compared with its previous range of $3.90 to $4.10 per share.
The forecast includes a 45-cent-per-share impact from tariffs, which is lower than the 85 cents or $500 million hit it expected in April.
Other medical device maker Boston Scientific and healthcare conglomerate Johnson & Johnson, whose costs were exclusively tied to its medtech unit, also halved their expectations for tariff-related costs for the year to about $100 million and $200 million, respectively.
GE HealthCare expects annual organic revenue growth of 3%, compared with its previous forecast of a 2% to 3% increase.
J.P.Morgan analyst Robbie Marcus said the company’s outlook was “good enough as a more in-line organic growth performance is balanced against conservative tariff assumptions that could/will likely leave upside on the table”.
GE HealthCare also beat Wall Street estimates for second-quarter profit and revenue, driven by growth in its all four businesses.
Revenue at imaging devices, the company’s largest segment, grew 2% during the period. Its other units are advanced visualization solutions, patient care solutions and pharmaceutical diagnostics.
Medical device manufacturers have been benefiting from still-high demand for elective surgical procedures in the United States, especially among older adults.
GE HealthCare’s total revenue came in at $5.01 billion during the quarter ended June 30, compared with analysts’ average estimate of $4.96 billion, according to data compiled by LSEG.
On an adjusted basis, it earned $1.06 per share, compared with the estimate of 92 cents per share.
The company said its adjusted core margin was down 80 basis points during the quarter, impacted by tariffs.
(Reporting by Puyaan Singh in Bengaluru; Editing by Shilpi Majumdar)
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