Company: GEHC
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001932393-25-000049
Chunk: 134

Company: GE HealthCare Technologies Inc.
Filing Date: 2025-07-30
Form: 10-Q
Item: Item 2
Chunk 134
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 change2025% of Total revenues2024% of Total revenues % changeOperating income    $65413.1%$60812.6%8%$1,28313.1%$1,14812.1%12%Net income attributable to GE HealthCare4869.7%4288.9%13%1,04910.7%8028.5%31%Adjusted EBIT*72914.6%74215.3%(2)%1,44314.8%1,42315.0%1%Adjusted net income*4879.7%4599.5%6%9519.7%8729.2%9%

For the three months ended June 30, 2025

Operating income was $654 million, an increase of $46 million and 50 basis points as a percent of Total revenues. The increase was due to the following factors: 

•Gross profit decreased $17 million or 170 basis points as a percent of Total revenues primarily due to an increase in both Cost of products sold and Cost of services sold as a percent of Total revenues. Cost of products sold increased $114 million or 240 basis points as a percent of Sales of products. The increase as a percent of sales was driven primarily by cost inflation, including the impact of incremental tariffs, and investment in design follow-through, partially offset by cost productivity. Cost of services sold increased $71 million or 90 basis points as a percent of Sales of services. The increase as a percent of sales was driven by unfavorable mix within our service offerings and cost inflation, including the impact of incremental tariffs, partially offset by an increase in pricing of our service offerings. Included in our total cost of revenues as part of our product investment was $128 million in engineering costs for design follow-through on new product introductions and product lifecycle maintenance subsequent to the initial product launch, compared to $102 million for the prior year comparable period; and

•Total operating expenses decreased $63 million primarily due to a decrease in Research and Development (“R&D”) of $26 million, driven by certain programs achieving development milestones resulting in costs to be reported under cost of revenues, and a decrease in Selling, general, and administrative (“SG&A”) expense of $38 million, primarily driven by a decrease in Spin-Off and separation costs, partially offset by increased investment in our commercial teams. As a result, SG&A as a percentage of Total revenues decreased by 150 basis points and R&D