Company: GEHC
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001932393-25-000053
Chunk: 134

Company: GE HealthCare Technologies Inc.
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 2
Chunk 134
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, as discussed above;

•Interest and other financial charges – net decreased $19 million primarily driven by debt repayment and continued optimization;

•Non-operating benefit income decreased $27 million primarily due to lower expected returns on plan assets; 

•Other income – net increased $17 million primarily driven by an increase in Net financing income and investment income (loss) as disclosed in Note 16, “Supplemental Financial Information”; and

•Provision for income taxes increased $11 million primarily due to U.S. and foreign tax law changes offset by the use of tax attributes from updating our global structure following the Spin-Off. For additional detail regarding our income taxes, see Note 10, “Income Taxes.”

Adjusted EBIT* and Adjusted EBIT margin* were $761 million and 14.8%, a decrease of $33 million and 150 basis points, respectively, primarily due to a decrease in Operating income, as discussed above.

Adjusted net income* was $490 million, a decrease of $31 million primarily due to a decrease in Operating income and higher Provision for income taxes, partially offset by lower Interest and other financial charges – net.

For the nine months ended September 30, 2025

Operating income was $1,936 million, an increase of $112 million and 30 basis points as a percent of Total revenues. The increase was due to the following factors: 

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*Non-GAAP Financial Measure

35

•Gross profit increased $57 million, but decreased 120 basis points as a percent of Total revenues primarily due to an increase in both Cost of products and Cost of services as a percent of Total revenues. Cost of products sold increased $347 million or 160 basis points as a percent of Sales of products. The increase as a percent of sales was driven 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 $170 million or 70 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 $357 million in engineering costs for design follow-through on new product introductions and product lifecycle maintenance subsequent to the initial product launch, compared to $305 million for the prior year comparable period; and

•Total operating expenses decreased $