General Electric Healthcare: China Weakness, Stronger Execution—Is A Turnaround Already Underway?

General Electric HealthCare reported its financial results for the fourth quarter and full year 2025 with organic revenue growth outpacing expectations, supported by strong demand in the U.S. and Europe, Middle East, and Africa (EMEA) regions. The company recorded a 4.8% organic revenue increase in the quarter, driven largely by Pharmaceutical Diagnostics (up double digits) and mid-single-digit growth in Imaging and Advanced Visualization Solutions. Product and service revenues both grew, with product revenue up 7.9% and service revenue by 5.5%. Orders grew 2% in the quarter with a record backlog of $21.8 billion and a solid book-to-bill ratio of 1.06x, underscoring sustained demand. Adjusted EBIT margin declined by 200 basis points in the quarter primarily due to approximately $100 million in tariff expenses and unfavorable product mix, partly offset by volume and pricing improvements. Adjusted EPS declined slightly by 0.7% including tariff effects but increased 11% excluding tariffs.