Netherlands' Philips slightly misses Q3 revenue estimates, maintains 2026 forecast

Koninklijke Philips

03/11/2026 06:09

Overview
Netherlands health technology firm's Q3 revenue rose 3%, slightly missing analyst expectations
Adjusted EBITA margin rose to 13.0%, supported by higher sales and productivity measures
Company reached agreement in principle with US DOJ on Respironics recall, booking EUR 288 mln provision

Outlook
Philips reiterates full-year 2026 comparable sales growth outlook of 3%-4.5%
Company expects full-year 2026 adjusted EBITA margin of 13.5%-14.0%, including US tariff refund benefit
Philips sees 2026 free cash flow at EUR 1.5-1.7 bln, including US tariff refund benefit

Result Drivers
ORDER INTAKE - Co said 8% rise in comparable order intake was driven by Diagnosis & Treatment segment
SEGMENT SALES - Co said 3% comparable sales growth was led by Personal Health and Connected Care segments
PRODUCTIVITY MEASURES - Co attributed margin expansion to higher sales, gross margin and productivity measures, partly offset by cost inflation

Company press release: ID:nGNE1Kk2n2

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Miss*
EUR 4.40 bln
EUR 4.41 bln (9 Analysts)
Q3 Operating Cash Flow
 
EUR 544 mln
 
Q3 Free Cash Flow
 
EUR 384 mln
 
Q3 Operating Income
 
EUR 165 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"
Wall Street's median 12-month price target for Koninklijke Philips N.V. is €26.50, about 8.1% above its November 2 closing price of €24.52
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)