On November 3, Dutch medical technology company Royal Philips NV released its third-quarter financial results, reporting comparable order intake growth of 8% year-on-year and comparable sales growth of 3% year-on-year to 4.39 billion euros.
Adjusted EBITA rose to 569 million euros from 531 million euros in the same period last year, an increase of approximately 7% year-on-year; the adjusted EBITA margin improved by 70 basis points to 13.0%, mainly driven by order growth, margin improvement, and cost savings from enhanced production efficiency.
By business segment, personal health sales grew 8% year-on-year, connected care grew 5%; diagnosis and treatment sales were essentially flat, with revenue in precision diagnosis declining, partially offset by growth in image-guided therapy.
Despite improved operating performance, Philips' third-quarter net income still fell to 28 million euros from 187 million euros in the same period last year, mainly due to a provision of 288 million euros related to U.S. criminal and civil investigations into the company's Respironics respiratory device recall.
Looking ahead to the full year, Philips maintained its 2026 guidance unchanged, expecting comparable sales growth of 3% to 4.5%, an adjusted EBITA margin of 13.5% to 14.0%, and free cash flow of 1.5 billion to 1.7 billion euros. The margin guidance includes an approximately 1 percentage point positive impact from U.S. tariff refunds.
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