Comparable sales increased 4%, with growth across all segments and a particularly strong 13% contribution from emerging markets. Philips delivered €132 million of savings in Q2 and €258 million in H1, supporting a material improvement in adjusted EBITA margins. Rolling 12-month order intake rose 5%, free cash flow reached €222 million, and leverage remained manageable at approximately 1.8x EBITDA.
PHG lifts its 2026 profit and free cash flow outlook after Q2 earnings increase on higher sales, productivity gains and a U.S. tariff refund benefit.
Koninklijke Philips N.V. (PHG) Q2 2026 Earnings Call Transcript
Shares in Philips fell as much as 11% in early European morning trade, wiping out the stock's gains since the start of the year.
Koninklijke Philips NYSE: PHG reported 4.1% comparable sales growth in the second quarter of 2026, supported by growth across all segments, while maintaining its full-year underlying sales and profitability outlook amid higher tariffs, cost inflation and continued weakness in China's health systems market.
The Dutch health-technology company said customer demand for its products remains healthy, with large orders in North America shifting into the third quarter, while Europe delivered strong double-digit growth.
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Artificial intelligence is helping improve accuracy in patient care and in some cases saving time and money, according to a survey sponsored by Philips , which provides diagnostic, imaging, and cloud technology to the healthcare industry, the CEO of its North American division said.
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Productivity initiatives, cost discipline, and portfolio transformation continue to support earnings growth. Philips' extensive installed base and proprietary healthcare datasets position the company to capitalize on AI-enabled healthcare applications. Following a solid Q1 print-out, and combined with a potential recovery in EU MedTech sentiment, we believe this creates scope for both earnings growth and multiple expansion. We remain buyers.
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