Netherlands' Philips slightly misses Q3 revenue estimates, maintains 2026 forecast

Overview

• Netherlands health technology firm's Q3 revenue rose 3%, slightly missing analyst expectations

• Adjusted EBITA margin rose to 13.0%, supported by higher sales and productivity measures

• Company reached agreement in principle with US DOJ on Respironics recall, booking EUR 288 mln provision

Outlook

• Philips reiterates full-year 2026 comparable sales growth outlook of 3%-4.5%

• Company expects full-year 2026 adjusted EBITA margin of 13.5%-14.0%, including US tariff refund benefit

• Philips sees 2026 free cash flow at EUR 1.5-1.7 bln, including US tariff refund benefit

Result Drivers

• ORDER INTAKE - Co said 8% rise in comparable order intake was driven by Diagnosis & Treatment segment

• SEGMENT SALES - Co said 3% comparable sales growth was led by Personal Health and Connected Care segments

• PRODUCTIVITY MEASURES - Co attributed margin expansion to higher sales, gross margin and productivity measures, partly offset by cost inflation

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

• Wall Street's median 12-month price target for Koninklijke Philips N.V. is €26.50, about 8.1% above its November 2 closing price of €24.52

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)