Company: GEHC
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001932393-25-000053
Chunk: 110

Company: GE HealthCare Technologies Inc.
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 8
Chunk 110
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 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 $55 million, with a decrease in R&D investments of $30 million, driven by certain programs achieving development milestones resulting in costs to be reported under cost of revenues, and a decrease in SG&A expense of $25 million primarily driven by a decrease in Spin-Off and separation costs, partially offset by increased investment in our commercial teams and the acquisition of NMP. R&D as a percentage of Total revenues decreased by 50 basis points and SG&A as a percentage of Total revenues decreased by 100 basis points.

Net income attributable to GE HealthCare and Net income margin were $1,495 million and 10.0%, an increase of $223 million and 120 basis points, respectively, primarily due to the following factors:

•Operating income increased $112 million, as discussed above;

•Interest and other financial charges – net decreased $49 million primarily driven by debt repayment and continued optimization;

•Non-operating benefit income decreased $83 million primarily related to lower expected returns on plan assets;

•Other income – net increased $123 million primarily driven by the remeasurement of the Company’s 50% interest in NMP based on the cash consideration exchanged for acquiring the remaining 50% equity interest. For additional detail on the NMP acquisition, refer to Note 7, “Acquisitions, Goodwill, and Other Intangible Assets”; and

•Provision for income taxes decreased $39 million primarily due to foreign income tax reserve releases for tax years which are no longer subject to an assessment from the local taxing authorities and the use of tax attributes from updating our global structure following the Spin-Off, offset by U.S. and foreign tax law changes. For additional detail regarding our income taxes, see Note 10, “Income Taxes.”

Adjusted EBIT* and Adjusted EBIT margin* were $2,205 million and 14.8%, a decrease of $13 million and 70 basis points