Royal Philips posted comparable sales growth of 4% in the first quarter of 2026, with group sales of 3.9 billion euros ($4.6 billion), as the company reiterated its full-year outlook amid what it described as an uncertain macroenvironment.
Adjusted EBITA margin increased 40 basis points to 9%, driven by higher sales and productivity gains, though partly offset by tariff impacts and cost inflation, the company said. Income from operations rose to 241 million euros ($283 million), while free cash flow totaled 28 million euros ($33 million).
On a segment basis, Personal Health led growth with comparable sales up 9%, followed by Connected Care at 3% and Diagnosis & Treatment at 2%. Innovation highlights included U.S. Food and Drug Administration clearance for two AI-enabled CT systems -- Verida Spectral CT and Rembra CT -- as well as for SmartHeart, which automates cardiac MR imaging planning, and DeviceGuide, an AI-powered real-time guidance tool for the Azurion image-guided therapy platform, Philips said.
In the Diagnosis and Treatment segment, Philips had adjusted EBITA margin of 9.8%, up 30 basis points. The increase mainly driven by higher sales and productivity, partly offset by higher tariffs and cost inflation, according to the vendor.
For full-year 2026, Philips is offering guidance of comparable sales growth of 3% to 4.5%, an adjusted EBITA margin of 12.5% to 13%, and free cash flow of 1.3 billion to 1.5 billion euros ($1.5 billion to $1.7 billion).
“Philips 2026 outlook includes currently known information, including tariffs, within an uncertain macro environment. It excludes any potential International Emergency Economic Powers Act (IEEPA) tariff refunds,” the company said.
