Amsterdam, Netherlands, July 27, 2026
Royal Philips has reported solid second-quarter 2026 financial results, driven by 4% comparable sales growth, improved profitability, and continued momentum across its Diagnosis & Treatment, Connected Care, and Personal Health businesses. The company generated EUR 4.4 billion in sales during the quarter while increasing its Adjusted EBITA margin to 16.4%, supported by disciplined operational execution and a U.S. tariff refund. Philips also reaffirmed its 2026 comparable sales growth outlook while raising its Adjusted EBITA and free cash flow guidance. Alongside its financial performance, the company introduced several AI-powered healthcare innovations, secured multiple regulatory clearances, expanded strategic healthcare partnerships, and continued investing in productivity initiatives designed to strengthen long-term growth. The latest results highlight Philips’ continued focus on medical technology innovation, AI-enabled healthcare solutions, and improving patient care despite ongoing macroeconomic challenges.
AI-Powered Medical Technology Drives Business Growth
During the second quarter, Philips introduced several advanced healthcare technologies that reinforce its leadership in medical imaging, image-guided therapy, and artificial intelligence-driven clinical solutions. Among the major product launches was SmartIQ for the Azurion image-guided therapy platform, designed to significantly reduce radiation exposure during coronary procedures while maintaining high-quality clinical imaging. According to Philips, the technology enables procedures using more than 50% lower X-ray radiation compared with existing low-dose settings, supported by published clinical evidence. The company also unveiled the AI-powered Titanion MR, a next-generation 3.0 Tesla MRI system, together with a pioneering 4D MR imaging solution for radiation therapy planning that improves visualization of moving tumors and enhances treatment precision. These innovations further strengthen Philips’ portfolio of AI-enabled diagnostic technologies aimed at supporting clinicians with more accurate decision-making and improved patient outcomes.
Global Healthcare Partnerships Expand Clinical Access
Philips continued expanding its international healthcare footprint through several major strategic collaborations during the quarter. In Poland, the company partnered with healthcare providers to modernize more than 200 hospitals through over 300 healthcare technology projects under the country’s National Recovery and Resilience Plan. Philips also secured a major contract with Region Stockholm following a tender led by Karolinska University Hospital to support a large-scale hospital-at-home initiative, providing remote patient monitoring, AI-enabled clinical services, and connected healthcare technologies capable of serving up to 15,000 patients annually. Additionally, Philips signed long-term enterprise imaging partnerships with a leading U.S. health system and Imperial College Healthcare NHS Trust in the United Kingdom, enabling cloud-based medical imaging workflows that improve collaboration between care teams while increasing access to critical patient information across healthcare networks.
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Strong Financial Performance Supports 2026 Outlook
Financially, Philips reported EUR 4.4 billion in Group sales, representing 4% comparable sales growth, while maintaining healthy performance across all major business segments. Diagnosis & Treatment and Connected Care each recorded 2% comparable sales growth, while Personal Health achieved an impressive 8% increase. The company generated EUR 609 million in income from operations, EUR 376 million in operating cash flow, and EUR 222 million in free cash flow, supported in part by the completion of the U.S. tariff refund process. Philips also achieved EUR 132 million in productivity savings during the quarter and confirmed it remains on track to deliver EUR 1.5 billion in savings under its 2026–2028 productivity program. Looking ahead, Philips reiterated its 2026 comparable sales growth outlook of 3% to 4.5% while increasing both its Adjusted EBITA margin guidance to 13.5%–14.0% and free cash flow outlook to EUR 1.5–1.7 billion. The combination of operational discipline, AI-powered innovation, and expanding healthcare partnerships positions Philips to continue strengthening its leadership in the global medical technology industry.
Source: Philips press release
