Philips says it has delivered in 2025 

AMSTERDAM – Royal Philips has reported comparable sales for its Connected Care segment, which includes Sleep and Respiratory Care, increased 7% in the fourth quarter and increased 3% for the full year. 

The company reported group sales of EUR 5.1 billion for the fourth quarter and EUR 17.8 billion for the full year. 

“In 2025, we delivered on our commitments as we scaled better care for more people,” said Roy Jakobs, CEO of Royal Philips. “We strengthened our company while navigating a dynamic macro-environment. We ended the year with strong order growth and sales, robust margin expansion despite tariffs, solid cash generation, and we exit the year with a robust balance sheet.” 

Other financial highlights: 

• Comparable order intake growth 6% in 2025; up 7% in Q4 

• Income from operations was EUR 1,424 million in 2025; EUR 540 million in Q4 

• Adjusted EBITA margin increased 80 basis points to 12.3% of sales in 2025; up 160 basis points to 15.1% in Q4 

• Operating cash flow of EUR 1,172 million in 2025; EUR 1,391 million in Q4 

• Free cash flow of EUR 512 million in 2025; EUR 1,200 million in Q4 

• Productivity savings of EUR 0.8 billion in 2025; delivered 2023-2025 target of EUR 2.5 billion 

For 2026, Philips expects: 

• Comparable sales growth: 3%-4.5% 

• Adjusted EBITA margin: 12.5%-13% 

• Free cash flow: EUR 1.3-1.5 billion 

“Today we enter our next phase of driving profitable growth,” Jakobs said. “Our unique platform-based innovations in health care and self-care, combined with our strong execution capability and fully integrated impact ambitions, provide Philips with a strong growth foundation in a world where data and AI are rapidly transforming care. These structural advantages enable us to move forward with confidence.” 

Roy Jakobs receives vote of confidence 

Royal Philips has proposed that Roy Jakobs be re-appointed as its president and CEO and member of its board of management. The decision, the company says, reflects the Supervisory Board’s recognition of the progress made since 2022 and its confidence in his leadership as the company enters the next phase of driving profitable growth. “Roy Jakobs has demonstrated clear leadership, strong execution and a relentless focus on strengthening Philips amid an uncertain macro environment,” said Feike Sijbesma, chairman of the Supervisory Board of Royal Philips. “Roy has built a strong foundation, enhanced financial resilience and created an impact-driven culture with a highly engaged team focused on delivering better care for more people through meaningful innovation. The Supervisory Board is confident that Roy is the right leader to continue guiding Philips with ongoing focus and accountability to create long-term sustainable value for all stakeholders.” The proposal will be submitted for approval at the upcoming Annual General Meeting of Shareholders (AGM) on May 8, 2026.