In Q2 2025, Philips reported stable financial performance, highlighting a 6% growth in comparable order intake and a slight 1% rise in sales, totaling EUR 4.3 billion. The company’s operating income reached EUR 400 million, with its adjusted EBITA margin improving by 130 basis points to 12.4%. Free cash flow also increased to EUR 230 million. Based on this progress, Philips raised its full-year margin and cash flow outlook while maintaining its sales growth forecast.
Segment-wise, Diagnosis & Treatment and Connected Care both saw minor sales declines but achieved improved margins due to innovation and better product mix. Personal Health recorded 6% sales growth but experienced a margin dip due to higher advertising spending.
Innovation remained a strong focus. Philips launched new AI-powered imaging technologies, expanded its global partnerships including a major deal with Indonesia’s Ministry of Health and introduced new consumer products like the AI-driven i9000 shaver. The company also continued efforts in clinical trials and sustainable healthcare solutions.
Productivity efforts saved EUR 197 million this quarter, contributing to Philips ongoing EUR 2.5 billion cost-saving program.
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