Philips Reports 3% Sales Rise, Q3 Profit Growth, Projects Strong 2025 Margins

Philips reported a slight increase in third-quarter net profits and a 3% rise in sales to 4.3 billion euros, aligning with analysts' expectations despite ongoing challenges including tariffs and litigation related to faulty sleep apnea machines. The company highlighted stronger-than-expected adjusted EBITA of 531 million euros, surpassing analyst forecasts, and expects its fiscal 2025 adjusted EBITA margin to be at the upper end of the 11.3% to 11.8% range. Philips saw an 8% growth in comparable order intake, driven mainly by strong performance in North America, and experienced margin expansion due to increased sales, favorable product mix, and productivity gains that outweighed tariff impacts. CEO Roy Jakobs emphasized the role of AI-powered innovations and long-term partnerships in accelerating sales growth and expanding margins, while maintaining a focus on patient safety and quality. A landmark agreement with Indonesia’s Ministry of Health is facilitating the installation of advanced medical systems, marking progress in expanding access to minimally invasive care. Overall, Philips is maintaining momentum through disciplined execution and cost management amid an uncertain macroeconomic environment.