The Dutch group has published its Q2 2025 results, including a 6% increase in comparable orders and a 1% increase in sales to €4.3bn. Operating profit reached €400m, while its adjusted EBITA margin improved by 130bp to 12.4% of revenue. Free cash flow climbed to €230m.

CEO Roy Jakobs highlighted the key role of recent innovations, particularly those integrating artificial intelligence, in this positive momentum.

In detail, the Diagnostics & Therapy segment posted a slight decline in comparable sales (-1%), but saw its EBITA margin improve thanks to a better gross margin. The Connected Care segment also recorded a 1% decline in comparable sales, but improved its profitability (+160bp). Only the Personal Health segment posted sales growth (+6%), despite a decline in margins, which were impacted by higher advertising expenses.

Philips also announced further advances with the launch of next-generation imaging systems and new partnerships in medical monitoring in the US and Europe. The group is continuing its three-year productivity program, targeting savings of €2.5bn, of which €800m is expected to be achieved in 2025.

Philips has confirmed its FY forecast for comparable sales growth of between 1% and 3% and has raised its adjusted EBITA margin expectations. The impact of tariffs, although revised downwards (from €250m-€300m to €150m-€200m, thanks to the EU/US agreement), remains a point of caution. However, management expects a gradual improvement over the quarters.

This reassuring announcement led to a sharp rise in the share price in early trading on the Amsterdam Stock Exchange, with it up over 10% in early trading.