GE HealthCare raises annual profit forecast on smaller tariff impact

July 30 (Reuters) - GE HealthCare Technologies GEHC.O 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 BSX.N and healthcare conglomerate Johnson & Johnson JNJ.N, 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.