GE HealthCare Technologies (NASDAQ: GEHC) has reported Q1 revenue that surpasses expectations, driven by strong domestic demand and an increase in elective surgeries, overshadowing the ongoing global trade tensions linked to President Donald Trump’s tariff policies.

Domestic Demand Counteracts Trade Challenges

In its recent quarterly results, GE HealthCare indicated double-digit order growth, alongside earnings expansion due to heightened efficiency and increased volumes. The U.S. medical device market has enjoyed particularly robust demand due to the resurgence of elective procedures following the pandemic.

However, the looming trade tensions remain a concern. The company noted that potential tariffs affecting China, and potentially other regions, could impose additional costs in 2025 if President Trump’s duties are reinstated after the current 90-day pause.

Q1 Highlights:

• Maintained organic revenue growth guidance of 2% to 3% for FY2025.

• Adjusted EPS forecast revised to $3.90 to $4.10, down from $4.61 to $4.75.

• Tariff-related expenses factored into guidance, relying on the assumption that current tariffs remain unchanged.

CEO Highlights Strategic Resilience

CEO Peter Arduini underscored the company’s dedicated focus on innovation and mitigation strategies. He stated, “We continue to observe strong customer demand across various markets, positioning us to deliver long-term value.” The firm also emphasized ongoing investments in new medical technologies, indicating confidence in future growth despite rising supply chain pressures.

Tariff Risks Loom Large

In the face of Trump’s strict tariff regime, GE HealthCare is among numerous U.S. companies grappling with potential impacts on their operational planning. Although they have not yet adjusted their guidance, lowering the EPS forecast demonstrates caution ahead of potential cost surges from possible tariff escalations.

Track Healthcare Stocks and Earnings Impact in Real-Time

• Explore GE HealthCare’s performance with the Earnings Historical API for detailed quarterly and annual earnings data.

• Keep an eye on changes in analyst sentiment with the Company Rating API as tariff situations evolve.

Conclusion

GE HealthCare’s solid Q1 performance suggests that domestic demand can still provide a buffer against global uncertainties—for the time being. As tariff hikes approach, investors will scrutinize how cost management, innovation projects, and international sales adapt throughout 2025.