Company: GEHC
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001932393-25-000053
Chunk: 133

Company: GE HealthCare Technologies Inc.
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 2
Chunk 133
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.7%(5)%1,49510.0%1,2728.9%18%Adjusted EBIT*76114.8%79516.3%(4)%2,20514.8%2,21715.4%(1)%Adjusted net income*4909.5%52110.7%(6)%1,4419.7%1,3939.7%3%

For the three months ended September 30, 2025

Operating income was $653 million, a decrease of $23 million and 120 basis points as a percent of Total revenues. The decrease was due to the following factors: 

•Gross profit decreased $36 million or 300 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 $237 million or 380 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. Cost of services sold increased $79 million or 160 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 $134 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 $13 million primarily due to a decrease in Research and development (“R&D”) of $25 million, driven by certain programs achieving development milestones resulting in costs to be reported under cost of revenues, partially offset by an increase in Selling, general, and administrative (“SG&A”) expense of $11 million, primarily driven by increased investment in our commercial teams and the acquisition of NMP, largely offset by a decrease in Spin-Off and separation costs. R&D as a percentage of Total revenues decreased by 80 basis points and SG&A as a percentage of Total revenues decreased by 90 basis points.

Net income attributable to GE HealthCare and Net income margin were $446 million and 8.7%, a decrease of $24 million and 100 basis points, respectively, primarily due to the following factors:

•Operating income decreased $23 million