Second-quarter sales rose to €4.4 billion as Philips beat analyst forecasts on revenue and margins, with higher full-year profit and cash-flow guidance reflecting U.S. tariff refunds.
Philips reported second-quarter comparable sales growth of 4% to €4.4 billion, beating analyst expectations, and posted an adjusted EBITA margin of 16.4%, well above the market forecast, helped by U.S. tariff refunds. The Dutch health technology company, which makes more than 40% of its sales in North America, raised its full-year adjusted EBITA margin guidance to 13.5%-14.0% from 12.5%-13.0% and lifted its free cash flow forecast to €1.5-1.7 billion from €1.3-1.5 billion. Philips said the updated outlook includes about a 1% benefit from U.S. tariff refunds, while the second-quarter margin included a 4.2% refund benefit. CEO Roy Jakobs said the company had largely completed the U.S. tariff refund process during the quarter while continuing to manage inflation and the broader macroeconomic environment.