Netherlands' Philips lifts annual profit, cash flow outlook after US tariff refund

Koninklijke Philips

27/07/2026 20:09

Overview
Netherlands health tech firm's Q2 sales rose 4% yr/yr to EUR 4.4 bln
Operating income increased to EUR 609 mln, boosted by US tariff refund benefit
Comparable order intake fell 1% due to timing of large orders shifting to Q3

Outlook
Philips sees 2026 comparable sales growth outlook of 3%-4.5%
Company raises 2026 adjusted EBITA margin outlook to 13.5%-14.0%, including US tariff refund benefit
Philips increases 2026 free cash flow guidance to EUR 1.5-1.7 bln

Result Drivers
US TARIFF REFUND - One-off US tariff refund significantly boosted operating income and margins in the quarter
ORDER TIMING - Comparable order intake declined 1% due to timing of certain large orders
COST INFLATION AND TARIFFS - Excluding the US tariff refund, margins were pressured by cost inflation and higher tariffs, partly offset by productivity measures

Company press release: ID:nGNE7Y0wv4

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
EUR 4.40 bln
 
Q2 Operating Cash Flow
 
EUR 376 mln
 
Q2 Free Cash Flow
 
EUR 222 mln
 
Q2 Operating Income
 
EUR 609 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 12 "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 NV is €27.25, about 15.8% above its July 27 closing price of €23.53
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 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.)