Philips Q2: Flat sales, stronger order intake 

AMSTERDAM – Philips reported group sales of EUR 4.3 billion for the second quarter of 2025, a 1% increase in comparable sales. 

The company reported order intake grew 6% compared to the previous quarter, driven by innovation and strengthening fundamentals. Order intake growth was 9% in the same quarter last year. 

“We are focused on driving profitable growth and delivering better care for more people. We built order intake growth momentum, supported by our recently launched AI-powered innovations. We did what we said we would do in the first half of the year and remain on track. We increase our full year outlook for margin and free cash flow, including currently announced tariff levels, and we reiterate our comparable sales growth outlook as we continue to build order and sales momentum.” 

Other financial results: 

• Income from operations EUR 400 million 
• Adjusted EBITA margin increased 130 bps to 12.4% of sales 
• Free cash flow increased to EUR 230 million 

For the Connected Care business, which includes Sleep and Respiratory Care, Philips reported a comparable sales decrease of 1% in the second quarter. Adjusted EBITA improved by 160 basis points to 10.4%, mainly driven by innovation and productivity measures. 

Overall, Philips says its disciplined cost management and robust productivity initiatives delivered savings of EUR 197 million in the second quarter. The company says it is on track to deliver on its three-year, EUR 2.5 billion productivity program, including EUR 800 million productivity savings in 2025. 

Philips also updated its outlook for full-year 2025, including currently announced tariff impact, to: 

• Comparable sales growth range was reiterated at 1%-3% with sequential improvement as the year progresses. 
• Adjusted EBITA margin range increased to 11.3%-11.8%, a 50 bps increase versus our previous outlook. This includes an estimated tariff impact of EUR 150-200 million after substantial mitigations, compared to EUR 250-300 million previously; Adjusted EBITA margin in Q3 expected to be lower than in 2024, primarily due to tariff impact phasing. 
• Free cash flow increased to EUR 0.2 billion-EUR 0.4 billion for the full year (including the payout in the first quarter of 2025 of EUR 1,025 million Philips Respironics recall-related medical monitoring and personal injury settlements in the US). 

The outlook excludes ongoing Philips Respironics-related proceedings, including the investigation by the U.S. Department of Justice.