GE HealthCare Technologies Inc. stock research
FY2025 Q4
GE HealthCare Technologies (GEHC) Gross Margin — Quarter Ended Dec 31, 2025
For the quarter ended December 31, 2025, revenue was higher than both the prior quarter and the same quarter one year ago, while gross profit was flat year over year. Cost of revenue increased compared to both periods, resulting in gross margin that improved from the immediate prior quarter but weakened relative to the year-ago quarter.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
For the quarter ended December 31, 2025, revenue was higher than both the prior quarter and the same quarter one year ago, while gross profit was flat year over year. Cost of revenue increased compared to both periods, resulting in gross margin that improved from the immediate prior quarter but weakened relative to the year-ago quarter.
- The gross margin improvement from the immediate prior quarter to the current period, combined with a larger revenue base, contributed to a higher gross profit sequentially. The year-over-year decline in gross margin despite higher revenue suggests that cost of revenue grew more than proportionally relative to revenue.
- Revenue in the current quarter was higher than both the preceding quarter and the same quarter one year earlier. Gross margin improved relative to the prior quarter but was lower than the year-ago level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.7%
Gross profit
$2.3B
Revenue
$5.7B
Cost of revenue
$3.4B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
-3.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $4.8B | $2.0B | $2.8B | 42.1% |
| Jun 30, 2025 | $5.0B | $2.0B | $3.0B | 39.6% |
| Sep 30, 2025 | $5.1B | $2.0B | $3.2B | 38.7% |
| Dec 31, 2025 | $5.7B | $2.3B | $3.4B | 39.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+1.0 pts
Year-over-year change
Dec 31, 2024
-3.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement from the immediate prior quarter to the current period, combined with a larger revenue base, contributed to a higher gross profit sequentially. The year-over-year decline in gross margin despite higher revenue suggests that cost of revenue grew more than proportionally relative to revenue.
Revenue in the current quarter was higher than both the preceding quarter and the same quarter one year earlier. Gross margin improved relative to the prior quarter but was lower than the year-ago level.
Monitor the trend in cost of revenue relative to revenue, as its growth rate in the current period exceeded revenue growth year over year.