Dutch health technology company Royal Philips has raised its earnings outlook for 2026 after receiving a substantial refund of US import tariffs, helping the company post stronger-than-expected second-quarter results despite ongoing global trade uncertainties.
Philips said it received €186 million in US tariff refunds, which significantly boosted its profitability during the second quarter. The one-off benefit contributed to an operating income of €609 million and helped lift the company’s adjusted EBITA margin to 16.4 per cent, exceeding analysts’ expectations.
The Amsterdam-based company reported group sales of €4.4 billion, representing 4 per cent comparable sales growth compared with the same period last year. Growth was recorded across all business segments, driven by sustained demand for medical imaging systems and healthcare technologies.
Chief Executive Officer Roy Jakobs said the company delivered a solid quarter through disciplined execution despite an uncertain macroeconomic environment.
“We delivered another solid quarter with comparable sales growth of 4%, driven by all business segments and strong disciplined execution within an uncertain macro environment,” Jakobs said in the company’s earnings statement.
Reflecting the tariff refund, Philips raised its full-year adjusted EBITA margin guidance to 13.5–14.0 per cent, up from its previous forecast of 12.5–13.0 per cent. The company also increased its free cash flow outlook to between €1.5 billion and €1.7 billion, compared with its earlier projection of €1.3 billion to €1.5 billion. However, it maintained its comparable sales growth forecast of 3–4.5 per cent for 2026.
Despite the improved earnings outlook, Philips reported a 1 per cent decline in comparable order intake, which it attributed mainly to the timing of several large contracts in North America that are now expected to be booked in the third quarter. The company said customer demand remains healthy and described the delay as temporary rather than a loss of business.
Philips, which generates more than 40 per cent of its revenue from North America, has been among the multinational companies affected by US import tariffs in recent years. The tariff refund is expected to ease some of the financial pressure created by those trade measures and strengthen the company’s cash position.
Although the results exceeded market expectations, Philips’ shares came under pressure after investors focused on weaker order intake and concerns over demand in China, where policy changes affecting medical procurement have weighed on sales.
