Philips continues to lean on international sleep growth, as FDA path continues

AMSTERDAM – The Sleep and Respiratory Care (SRC) business at Philips grew in the low single digits in the first quarter of 2026, but its obstructive sleep apnea (OSA) portfolio stood out with double-digit growth outside of the U.S., says CEO Roy Jakobs.

International markets fuel OSA growth

OSA growth was particularly strong in Japan, the company’s second-largest market, Jakobs said during a recent conference call to discuss the company’s financial results.

“If you look at sleep outside of U.S., we see strong double-digit growth that's led by Japan, but also it's coming from the markets where we are coming back,” he said. “That's offset by the ongoing respiratory pruning effect. That's kind of where you see the mix effect coming in, where the comparison is normalizing towards end of year. That also should improve.”

In early 2025, with clearance in France, Philips returned to selling products in all countries except the U.S.

U.S. return remains tied to FDA progress

Jakobs did not have an update on SRC’s return to the U.S. market, other than to say that Philips is hitting all milestones with the U.S. Food and Drug Administration (FDA).

“We are working strongly on the mitigation of the regulatory path,” he said. “That's something that we're also making good progress on.”

In early 2024, Philips agreed to the terms of a multi-year consent decree with the FDA related to the recall of certain sleep and respiratory care devices. Under the terms, the company has been able to continue servicing devices already with health care providers and patients and supply accessories, consumables and replacement parts, but not sell new CPAP or BiPAP devices or other respiratory care devices.

Pent-up demand sets stage for comeback

From an innovation perspective, Jakobs said SRC is seeing “good resonance” for its ecosystem of devices, masks and software.

“People are still waiting in certain markets for us to get back and to get back on our platform because they really appreciate the patient interface that we have built,” he said. “That’s giving us a strong way back into the market.”