Philips (NYSE:PHG) has posted second-quarter financial results that landed ahead of the consensus Wall Street forecast.
However, shares of PHG fell 4.3% to $23.93 apiece in pre-market trading today.
The Amsterdam-based medtech giant reported profits of $438.4 million. That equals 45¢ per share on sales of $4.95 billion for the three months ended June 30, 2026.
Philips recorded a 60.8% bottom-line gain on a sales increase of 0.5%. Comparable sales growth totaled 4%. Philips reported that comparable order intake decreased by 1% in the quarter. It attributed this to growth in Diagnosis & Treatment offset by the timing of certain large Connected Care orders shifting into the third quarter.
Adjusted to exclude one-time items, earnings per share came in at 56¢. That landed 19¢ ahead of expectations on Wall Street. Sales also topped estimates as experts projected $4.3 billion in revenue.
Philips reported 2% comparable sales growth in Diagnosis & Treatment and the same growth in Connected Care. Personal Health comparable sales increased by 8%.
Highlights in the quarter included the launch of SmartIQ, its coronary imaging technology for the Azurion image-guided therapy platform. The company also won FDA clearance for its Elevate Plus advanced imaging and AI and automation capabilities.
For the full year, Philips reiterated its expectations for comparable sales growth between 3% and 4.5%. It updated its free cash flow outlook, increasing it to between $1.7 billion and $1.93 billion. That update reflects the company’s U.S. tariff refund, rising from EUR $1.48 billion to $1.7 billion previously.
The outlook includes currently known tariffs and excludes ongoing Philips Respironics-related proceedings, including a U.S. DOJ investigation.
includes currently known tariffs. It excludes ongoing Philips Respironicsrelated proceedings, including the investigation by the US Department of Justice and the State Attorneys General.
Philips CEO Roy Jakobs said:
“We delivered another solid quarter with comparable sales growth of 4%, driven by all business segments, and strong disciplined execution within an uncertain macro environment. Customer demand for our innovations remains healthy, with certain large orders in North America shifting into the third quarter, while Europe delivered strong double-digit order growth.
Our plan continues to gain traction, creating value through focused segment strategies, differentiated platform innovations, commercial excellence and disciplined execution. We launched SmartIQ for our Azurion image-guided therapy platform and received several new regulatory clearances for our AI-powered innovations. Our teams around the world are focused on delivering better care for more people.
We largely completed the US tariff refund process during the quarter and continue to actively manage the broader macro environment, including inflation. Our productivity program is on track, helping to largely offset these pressures. We are strengthening our supply chain resilience as we continue to put quality at the heart of our operations.”
