GE HealthCare reported 7% revenue growth in 2023 but net income dropped in its first year as a publicly traded company after spinning out from GE.
"We've made significant strides, including investing over $1 billion in R&D for future growth, helping drive more than 40 innovations in 2023," said Peter Arduini, GE HealthCare president and CEO. "We bolstered our market position with strategic acquisitions, while at the same time paying down $1 billion in debt, setting a solid foundation for continued growth. We're confident heading into 2024 amid the backdrop of an improved capital equipment landscape."
Revenue hit $19.6 billion for the full year, fueled by 5% year over year growth in the fourth quarter. The net income attributable to GE HealthCare dropped from $1.9 billion last year to $1.6 billion in 2023, and the net income margin hit 8%.
In the fourth quarter, GE HealthCare's imaging segment drove results with a 4% increase in revenue to $2.8 billion. Patient care solutions revenue was up 5% and pharmaceutical diagnostics revenues jumped 25%. Ultrasound revenue dropped 1% year over year, hitting $944 million for the quarter.
GE HealthCare anticipates 4% organic revenue growth in 2024 with an adjusted EBIT margin of 15.6% to 15.9%.
Mr. Arduini said during the Feb. 6 earnings call that GE HealthCare is in the process of developing a subscription-based application for the cloud and leaning into artificial intelligence solutions.
"Our high-growth, high-margin AI solutions are designed to increase productivity, efficiency and diagnostic confidence," he said, as transcribed by Seeking Alpha. "Customers have the option to purchase new AI-equipped devices or as an upgrade to existing equipment. We're actively pursuing AI across our product portfolio with a focused effort to expedite product development in 2024."