GE HealthCare Cuts Full-Year Profit Forecast as Inflation and Tariffs Weigh on Margins

Chicago — GE HealthCare lowered its full-year profit outlook after reporting first-quarter results impacted by rising inflation and tariff-related costs, sending its shares down დაახლოებით 13% in early trading.

Profit Miss and Lowered Guidance

The company reported adjusted earnings of $0.99 per share for the first quarter, falling short of analyst expectations of $1.05. The miss was partly attributed to a supplier issue within its pharmaceutical diagnostics business, which has since been resolved.

GE HealthCare now expects full-year adjusted earnings between $4.80 and $5.00 per share, down from its prior forecast of $4.95 to $5.15.

Inflation Pressures Intensify

Rising costs remain a key headwind, with the company projecting approximately $250 million in gross inflation impact for the year—equivalent to about $0.43 per share.

According to CFO Jay Saccaro, the financial impact of inflation was limited in the first quarter due to inventory accounting effects, but is expected to increase significantly starting in the second quarter and peak in the latter half of the year.

The company plans to offset more than half of these pressures through pricing adjustments and cost-control measures, with most benefits expected later in the year as price increases take effect.

Tariffs Add to Margin Pressure

Tariffs also contributed to margin compression, with first-quarter earnings reflecting an estimated $0.16 per share impact.

While GE HealthCare expects tariff-related pressure to moderate in upcoming quarters, the current environment continues to create uncertainty around cost structures and profitability.