Philips' Fourth-Quarter and Annual Results 2025

Philips delivers full year 2025 with growth acceleration, strong margin expansion and solid cash flow; announces 2026-2028 targets at Capital Markets Day

Feb 10, 2026 | 7 minute read

Full year and Q4 highlights

Comparable order intake growth 6% in 2025; up 7% in Q4
Group sales of EUR 17.8 billion in 2025, EUR 5.1 billion in Q4; comparable sales growth 2% in 2025, 7% in Q4
Income from operations was EUR 1,424 million in 2025; EUR 540 million in Q4
Adjusted EBITA margin increased 80 basis points to 12.3% of sales in 2025; up 160 basis points to 15.1% in Q4
Operating cash flow of EUR 1,172 million in 2025; EUR 1,391 million in Q4
Free cash flow of EUR 512 million in 2025; EUR 1,200 million in Q4
Productivity savings of EUR 0.8 billion in 2025; delivered 2023-2025 target of EUR 2.5 billion
Proposed 2025 dividend of EUR 0.85 per share, in shares or cash at the option of the shareholder
Outlook for 2026 published

Capital Markets Day

Philips sets out plan to drive profitable growth to deliver sustainable value, including new, integrated 2030 Impact Ambitions. Plan comprises three pillars: segment-specific growth strategies, innovation as a key growth driver and continued disciplined execution
Philips publishes 2026-2028 financial targets, including mid-single-digit comparable sales growth CAGR over the period and mid-teens Adjusted EBITA margin in 2028

Roy Jakobs, CEO of Royal Philips:

“In 2025, we delivered on our commitments as we scaled better care for more people. We strengthened our company while navigating a dynamic macro-environment. We ended the year with strong order growth and sales, robust margin expansion despite tariffs, solid cash generation, and we exit the year with a robust balance sheet.

Over the past three years, we have strengthened Philips at its core. Our employees live our culture of impact with care, guided by an expert leadership team. We prioritized quality, built supply chain resilience, and simplified how we operate. This focus delivered customer-driven innovation. We launched the new Azurion neuro biplane platform to advance minimally invasive diagnosis and treatment for neurovascular patients. We presented our latest innovations in 3.0T helium-free MR. We introduced centralized patient monitoring designed for enterprise-scale care. We expanded our OneBlade platform into an all-body solution. We remained true to our purpose, and delivered on our promise to create value with sustainable impact.

Today we enter our next phase of driving profitable growth. Our unique platform-based innovations in healthcare and self-care, combined with our strong execution capability and fully integrated impact ambitions, provide Philips with a strong growth foundation in a world where data and AI are rapidly transforming care. These structural advantages enable us to move forward with confidence.

Our talented, passionate team is energized and executing with purpose and discipline as we drive meaningful impact for patients, consumers and health systems.”

Group and segment performance

For the quarter, comparable order intake increased 7%, supported by growth in both Diagnosis & Treatment and Connected Care and continued strong performance in North America. Group comparable sales increased 7%, with growth in all segments.

Adjusted EBITA margin increased strongly by 160 basis points to 15.1% in the quarter, driven by higher sales, gross margin from recently launched innovations, and productivity, more than offsetting the impact from incremental tariffs. Free cash flow was EUR 1,200 million.

For the full year, comparable order intake increased 6% and comparable sales growth was 2%. Adjusted EBITA increased 80 basis points to 12.3%, driven by underlying gross margin and strong productivity, which more than offset the impact from increased tariffs after substantial mitigations. Free cash flow was EUR 512 million. Free cash flow included a EUR 1,025 million payment for Respironics recall-related medical monitoring and personal injury settlements in the US.

Diagnosis & Treatment comparable sales increased 4% in Q4. Adjusted EBITA margin was 11.8% in Q4, down 30 basis points, mainly due to tariffs and partly offset by higher gross margin from innovation and productivity. For the full year, the Diagnosis & Treatment Businesses recorded 0% comparable sales growth and an Adjusted EBITA margin of 11.7%.

Connected Care comparable sales increased 7% in Q4. Adjusted EBITA margin improved 150 basis points to 16.5% in Q4, driven by operating leverage, improved gross margin and productivity, and partly offset by tariffs. For the full year, the Connected Care Businesses recorded a 3% comparable sales increase, and Adjusted EBITA margin increased to 10.7%.

Personal Health comparable sales increased 14% in Q4. Adjusted EBITA margin increased 500 basis points to 23.0% in Q4, driven by higher sales and productivity, and partly offset by tariffs. For the full year, Personal Health comparable sales were 8%, and Adjusted EBITA margin increased to 18.0%.

Innovation highlights

At RSNA, Philips presented three world-first innovations, including the world's first BlueSeal helium-free 3.0T MR magnet [1]; Philips Verida, the world's first detector-based Spectral CT fully powered by AI, and the next generation of Philips Vue PACS with a zero-footprint, web-based diagnostic viewer.
Philips signed in December 2025 and completed in January 2026 the acquisition of SpectraWAVE, delivering the most advanced and complete portfolio for coronary interventional procedures in the industry.
Philips signed a five-year strategic partnership with AdventHealth, a large not-for-profit healthcare system in the US with more than 50 hospital campuses across nine states. The collaboration will replace and upgrade patient monitors across the network, coupled with Philips’ Software Evolution Service program, supporting standardized workflows, improved patient safety, and a future-ready monitoring infrastructure across care settings.
Philips secured a landmark competitive radiology IT partnership with one of the largest private healthcare providers in the US. The collaboration will standardize Philips’ cloud-based HealthSuite Imaging PACS, hosted on Amazon Web Services, across almost 30 hospitals, replacing competitive systems and supporting millions of imaging studies annually with scalable, efficient diagnostic workflows.
At the China International Import Expo, Philips revealed new oral care, grooming, and haircare innovations, including Sonicare Prestige 9900 and Norelco i9000 Prestige, reinforcing our commitment to meaningful, locally relevant innovation in China.
The RADIQAL clinical trial has enrolled almost half of the targeted patients, testing the effectiveness of Philips’ new ultra-low-dose technology, SmartIQ, in reducing radiation without impacting procedure performance.
Philips was named a Clarivate Top 100 Global Innovator for 2026 for the 13th consecutive year, ranking as the highest medical technology company, with industry-leading R&D investment and a strong innovation pipeline.

[1] 3.0T Helium-free MR is Work in Progress and not available in any jurisdiction. Its future availability cannot be guaranteed.

Productivity

Philips has successfully delivered its three-year, EUR 2.5 billion productivity program, including EUR 0.8 billion of productivity savings in 2025.

Outlook

For 2026, Philips expects:

Comparable sales growth: 3%-4.5%
Adjusted EBITA margin: 12.5%-13.0%
Free cash flow: EUR 1.3-1.5 billion

Within the context of an uncertain macro-environment, Philips' 2026 outlook includes currently known tariffs. It excludes ongoing Philips Respironics-related proceedings, including the investigation by the US Department of Justice.

Capital allocation

Philips intends to submit to the 2026 Annual General Meeting of Shareholders a proposal to declare a dividend of EUR 0.85 per common share, in shares or cash at the option of the shareholder.

Capital Markets Day

Driving profitable growth to deliver sustainable value

Later today, Philips will present its plan to drive profitable growth to deliver sustainable value. The company enters this next phase of its strategy having strengthened its core fundamentals, team and culture, resilience and execution agility. Building on this foundation, Philips is leveraging its scalable platform-based innovation advantage, supported by a large global customer base and a trusted brand across healthcare and self-care. There are three pillars to this plan:

Creating value through segment-specific strategies that reflect the distinct needs of different customers, markets and technologies. By making deliberate choices on where to compete, how to win, and how to allocate capital, the company maximizes the potential of each segment while delivering consistent value across its portfolio.

Innovation as a key growth driver with platform-based solutions as our unique differentiator. Customer- and consumer-centric innovation and platform-based solutions integrate hardware, software, data, and AI. This will enable Philips to address clinical, operational and everyday health challenges, enabling better outcomes, improved experiences, and sustainable profitable growth.

Disciplined execution underpins this approach. Quality and compliance remain Philips' number one priority. Resilient operations will ensure Philips can continue to act with agility in an uncertain macro-environment. Simplification and AI will drive enhanced productivity and speed. The company will step-up commercial and service excellence. Philips will translate innovation into impact, scale solutions effectively, and deliver reliably on its commitments.

This plan will be delivered by Philips' expert leadership team and an engaged and talented workforce, supported by the company's culture of impact with care, focused on performance, innovation and growth.

Mid-term targets for 2026-2028

As a result of this strategy Philips aims to deliver the following mid-term targets for 2026-2028:

Comparable sales growth at mid-single-digits CAGR
Adjusted EBITA margin at mid-teens in 2028
Free cash flow of EUR 4.5-5.0 billion cumulatively over the period
EUR 1.5 billion of productivity savings in the period 2026-2028

Within the context of an uncertain macro-environment, Philips' mid-term targets include currently known tariffs. They exclude ongoing Philips Respironics-related proceedings, including the investigation by the US Department of Justice.

Philips 2030 Impact Ambitions

Philips launches its 2030 Impact Ambitions, building on strong achievement of its 2020-2025 ESG commitments. The ambitions are fully integrated into the company’s plan to drive profitable growth and deliver sustainable value. Embedded in business strategies and performance management with roadmaps per business, the ambitions focus on improving health and well-being, reducing absolute environmental impact across the value chain in line with science-based frameworks, enabled by strong governance.

Philips Q4 2025 results downloads

Report

Presentation

Visit our results hub for more on our financial and sustainability performance over the past quarter.

Further information: conference call, video webcast and website

Roy Jakobs, CEO, and Charlotte Hanneman, CFO, will host a conference call for investors and analysts at 09:00 am CET today to discuss the fourth quarter results. Philips Capital Markets Day will also take place on the same day, and the live webcast will start at 12:00 pm CET. Replay of these events, and related materials, which includes additional information including forward-looking statements and further information on our outlook, will be available on the Philips Investor Relations webpage.

More information about Roy Jakobs and Charlotte Hanneman

Click here for Roy Jakobs' CV and images
Click here for Charlotte Hanneman's CV and images

About Royal Philips

About Royal Philips

Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people’s health and well-being through meaningful innovation. Philips’ patient- and people-centric innovation leverages advanced technology and deep clinical and consumer insights to deliver personal health solutions for consumers and professional health solutions for healthcare providers and their patients in the hospital and the home.

Headquartered in the Netherlands, the company is a leader in diagnostic imaging, ultrasound, image-guided therapy, monitoring and enterprise informatics, as well as in personal health. Philips generated 2025 sales of EUR 18 billion and employs approximately 64,800 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.
Forward-looking statements and other important information

Forward-looking statements and other important information

Forward-looking statements

This document and the related oral presentation, including responses to questions following the presentation, contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. Examples of forward-looking statements include statements made about our strategy, estimates of sales growth, future Adjusted EBITA*, future restructuring and acquisition-related charges and other costs, future developments in Philips’ organic business and the completion of acquisitions and divestments. Forward-looking statements can be identified generally as those containing words such as “anticipates”, “assumes”, “believes”, “estimates”, “expects”, “should”, “will”, “will likely result”, “forecast”, “outlook”, “projects”, “may” or similar expressions. By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these statements.

These factors include, but are not limited to, macro-economic and geopolitical changes – including the war in Ukraine and ongoing tensions in the Middle East – as well as measures such as enacted and proposed tariffs and trade actions introduced in response to rising global tensions; Philips’ ability to keep pace with the changing health technology environment; Philips’ ability to gain leadership in artificial intelligence and health informatics in response to developments in the health technology industry; integration of acquisitions and their delivery on business plans and value creation expectations; ability to meet expectations with respect to ESG-related matters; securing and maintaining Philips’ intellectual property rights, and unauthorized use of third-party intellectual property rights; failure of products and services to meet quality or security standards, adversely affecting patient safety and customer operations; the resilience of our supply chain; challenges in simplifying our organization and our ways of working; attracting and retaining personnel; breach of cybersecurity; challenges in driving operational excellence and speed in bringing innovations to market; treasury and financing risks; tax risks; reliability of internal controls; compliance with regulations and standards involving quality, product safety, (cyber) security and artificial intelligence; and compliance with business conduct rules and regulations including privacy, existing and upcoming ESG disclosure and due diligence requirements. As a result, Philips’ actual future results may differ materially from the plans, goals and expectations set forth in such forward-looking statements. For a discussion of factors that could cause future results to differ from such forward-looking statements, see also the Further information chapter included in the Annual Report 2024.

Third-party market share data

Statements regarding market share contained in this document, including those regarding Philips’ competitive position, are based on outside sources such as specialized research institutes, as well as industry and dealer panels, in combination with management estimates. Where information is not yet available to Philips, market share statements may also be based on estimates and projections prepared by management and/or based on outside sources of information. Management’s estimates of rankings are based on order intake or sales, depending on the business.

Market Abuse Regulation

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation. This press release was distributed at 07:00 am CET on February 10, 2026.

Use of non-IFRS information

In presenting and discussing the Philips Group’s financial position, operating results and cash flows, management uses certain non-IFRS financial measures. These non-IFRS financial measures should not be viewed in isolation as alternatives to the equivalent IFRS measure and should be used in conjunction with the most directly comparable IFRS measures. Non-IFRS financial measures do not have standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. A reconciliation of these non-IFRS measures to the most directly comparable IFRS measures is contained in this document. Further information on non-IFRS measures can be found in the Annual Report 2024.

Presentation

All amounts are in millions of euros unless otherwise stated. Due to rounding, amounts may not add up precisely to totals provided. All reported data is unaudited. Financial reporting is in accordance with the accounting policies as stated in the Annual Report 2024. Certain prior-year balances have been reclassified to conform to the current period presentation.

From September 30, 2025 uncertain tax liabilities were reclassified from non-current tax liabilities to current income tax liabilities.

Per share calculations for all periods presented have been retrospectively adjusted to reflect the issuance of shares in 2025 with respect to the share dividend for 2024.

* Non-IFRS financial measure. Refer to the Reconciliation of non-IFRS information