Second Quarter Financial Results

Koninklijke Philips N.V. reported a challenging second quarter in 2025, with sales declining by 2.8% year-over-year to €4.34 billion. The health technology giant also saw a significant drop in net income, which fell by 46.9% to €452 million compared to the previous quarter. Diluted earnings per share (EPS) followed suit, decreasing by 46.8% to €0.25.

Future Outlook

Despite the downturn, Philips remains optimistic about its future performance. The company forecasts a comparable sales growth of 1% to 3% for 2025, maintaining its previous projection. Additionally, it has adjusted its EBITDA growth expectations upwards to 11.3%–11.8% and anticipates a free cash flow of €200 million.

Leadership's Perspective

"We are enhancing our full-year outlook for margin and free cash flow, considering the recently announced tariff levels, and we stand by our comparable sales growth outlook as we continue to strengthen our order and sales momentum," stated Roy Jakobs, Chief Executive Officer (CEO) of Philips.