GE HealthCare Technologies reduced its annual profit forecast after memory chips, oil, and freight costs surged during the recent quarter. Despite posting stronger-than-expected first-quarter results, the medical-technology company faces mounting supply chain pressures that are squeezing profit margins across its global operations.

The company reported first-quarter revenues climbed 7.4% to $5.13 billion, yet lowered its full-year adjusted earnings guidance to $4.80-$5 per share from $4.95-$5.15 previously. Wall Street analysts had projected $5.06 per share, indicating the revised outlook falls short of market expectations and suggests ongoing challenges in the healthcare technology sector.

The earnings cut reflects broader industry challenges as medical device manufacturers contend with volatile commodity prices and supply chain disruptions. Investors will closely monitor whether GE HealthCare can implement effective cost controls to mitigate these inflationary pressures and restore stronger profitability guidance in future reporting periods.