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Philips (NYSE: PHG) lifts Q1 profit and reiterates 2026 outlook

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6-K

Rhea-AI Filing Summary

Koninklijke Philips started 2026 solidly, with Q1 group sales of EUR 3.9 billion and 4% comparable sales growth, driven by all segments, especially Personal Health at 9%. Comparable order intake grew 6%, supporting future revenue.

Income from operations rose to EUR 241 million, while adjusted EBITA reached EUR 353 million with a 9.0% margin, up 40 basis points, helped by higher sales, innovation-led gross margin and productivity savings, partly offset by tariffs and cost inflation. Net income increased to EUR 146 million, and free cash flow improved to EUR 28 million.

Philips reiterated its 2026 outlook for 3%–4.5% comparable sales growth, 12.5%–13.0% adjusted EBITA margin and EUR 1.3–1.5 billion free cash flow. The company plans to repurchase up to 4 million shares (about EUR 91 million) to cover long-term incentive plans and highlighted multiple AI-enabled product clearances and strategic hospital partnerships.

Positive

  • None.

Negative

  • None.

Insights

Philips posts healthier Q1 margins, solid orders and reiterates 2026 goals.

Philips delivered 4% comparable sales growth and a 9.0% adjusted EBITA margin in Q1 2026, with 6% order intake growth indicating sustained demand. Net income nearly doubled to EUR 146 million, while free cash flow swung to EUR 28 million from a large outflow a year earlier.

Segment performance was mixed but generally constructive: Diagnosis & Treatment and Personal Health expanded margins, while Connected Care remained low-margin at 2.9% adjusted EBITA due to tariffs and inflation, despite 3% comparable sales growth. Productivity savings of EUR 126 million support the multiyear cost program targeting EUR 1.5 billion by 2028.

Management reaffirmed its 2026 targets for 3%–4.5% comparable sales growth, 12.5%–13.0% adjusted EBITA margin and EUR 1.3–1.5 billion free cash flow, explicitly excluding potential International Emergency Economic Powers Act tariff refunds and ongoing Philips Respironics-related proceedings. A planned repurchase of up to 4 million shares for incentive plans is modest relative to group equity and mainly affects capital allocation rather than operations.

Q1 2026 sales EUR 3,905 million Group sales for Q1 2026
Comparable sales growth 4% Philips Group Q1 2026 vs Q1 2025
Income from operations EUR 241 million Q1 2026 group operating income
Adjusted EBITA EUR 353 million (9.0% margin) Q1 2026 group profitability
Net income EUR 146 million Q1 2026 net income
Free cash flow EUR 28 million Q1 2026 free cash flow
2026 FCF outlook EUR 1.3–1.5 billion Full-year 2026 free cash flow guidance
Share repurchase for LTIP Up to 4 million shares (~EUR 91 million) Forward transactions expected with delivery in Q4 2028
Comparable sales growth financial
"Group sales of EUR 3.9 billion, reflecting 4% increase in comparable sales"
Comparable sales growth measures how much the sales from existing, similar parts of a business increase over a specific period, excluding new locations or products. It helps investors see how well a company's core operations are performing without the influence of expansion or changes in its structure. This metric provides a clearer picture of consistent, ongoing demand for the company's offerings.
Adjusted EBITA financial
"Adjusted EBITA margin increased 40 basis points to 9.0%"
Adjusted EBITA is a measure of a company’s operating profit before interest, taxes and amortization, further modified to remove one-time or unusual items so it reflects ongoing business earnings. It matters to investors because it aims to show the company’s core cash-making ability — like listening to an engine without road noise — making comparisons across periods or peers easier, though companies may differ in what they exclude.
Free cash flow financial
"Operating cash flow of EUR 188 million, with free cash flow of EUR 28 million"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
FDA 510(k) clearance regulatory
"Philips received FDA 510(k) clearance for two AI-powered cardiology solutions"
FDA 510(k) clearance is an official approval from the U.S. Food and Drug Administration that allows medical devices to be legally sold in the United States. It indicates the device is considered safe and effective based on its similarity to already approved products. For investors, achieving 510(k) clearance can signal a company's readiness to bring a medical device to market and generate revenue.
International Emergency Economic Powers Act (IEEPA) regulatory
"It excludes any potential International Emergency Economic Powers Act (IEEPA) tariff refunds."
A U.S. law that lets the president impose wide economic controls—like trade bans, asset freezes, and export limits—when a national emergency is declared. For investors it matters because these powers can suddenly change which countries, companies, or products can be traded or owned, similar to a circuit breaker that can shut off parts of a market and alter company revenues, supply chains, or the value of holdings overnight.
Net debt group equity ratio financial
"Net debt group equity ratio | 33:67 | 32:68"
Sales EUR 3,905 million vs EUR 4,097 million in Q1 2025
Comparable sales growth 4% vs (2%) in Q1 2025
Income from operations EUR 241 million vs EUR 154 million in Q1 2025
Net income EUR 146 million vs EUR 72 million in Q1 2025
Adjusted EBITA margin 9.0% vs 8.6% in Q1 2025
Guidance

For full-year 2026, Philips targets 3%–4.5% comparable sales growth, 12.5%–13.0% adjusted EBITA margin, and EUR 1.3–1.5 billion free cash flow, excluding potential IEEPA tariff refunds and Philips Respironics-related proceedings.

Form 6-K: How Foreign Companies Report to the SEC →

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________________________________
FORM 6-K
____________________________________________________________________________
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934
May 6, 2026
____________________________________________________________________________
KONINKLIJKE PHILIPS N.V.
(Exact name of registrant as specified in its charter)
____________________________________________________________________________
Royal Philips
(Translation of registrant’s name into English)
The Netherlands
(Jurisdiction of incorporation or organization)
Prinses Irenestraat 59, 1077 WV Amsterdam, The Netherlands
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒        Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule101(b)(7): ☐
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ☐        No ☒
Name and address of person authorized to receive notices and communications from the Securities and Exchange Commission:
M.J. van Ginneken
Koninklijke Philips N.V.
Prinses Irenestraat 59
1077 WV Amsterdam – The Netherlands







This report comprises a copy of the following report:
“Philips' First Quarter Results 2026”, dated May 6, 2026.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized at Amsterdam, on the 6th day of May 2026.
KONINKLIJKE PHILIPS N.V.


/s/ M.J. van Ginneken
(Chief Legal Officer)




















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Quarterly report
Q1 2026




Philips delivers strong order intake, comparable sales growth and margin expansion in Q1;
2026 outlook reiterated
Amsterdam, May 6, 2026
Q1 2026 Group performance
•Comparable order intake growth 6%
•Group sales of EUR 3.9 billion, reflecting 4% increase in comparable sales
•Income from operations increased to EUR 241 million
•Adjusted EBITA margin increased 40 basis points to 9.0%
•Operating cash flow of EUR 188 million, with free cash flow of EUR 28 million
•2026 outlook reiterated

Roy Jakobs, CEO of Royal Philips:
“We delivered a good start to 2026, with strong order intake growth at 6%, comparable sales growth of 4% and margin expansion of 40 basis points, reflecting disciplined execution against our plan in an uncertain macro-environment. Sales grew across segments and was led by North America and Europe.
We are moving forward with full energy on our new plan to accelerate profitable growth, built on three strategic pillars: focused segment-specific strategies, differentiated platform-based innovations, and disciplined execution.
We are proud to remain the number one MedTech patent applicant in Europe and to have secured regulatory approval for key AI-powered innovations such as SmartHeart, which automates cardiac MR imaging planning in one click. Our unique, differentiated platforms drove strong demand by combining hardware, software and AI. DeviceGuide gained regulatory approval, adding AI-powered real-time guidance to complex cardiac procedures on the Azurion image-guided therapy platform. Our OneBlade grooming platform resonated with customers by providing superior experience and versatility in use.
Disciplined execution underpins our progress as we navigate an increasingly dynamic macro-environment. In response to external pressures, we are focused on what we can control: stepping up productivity actions to offset the impact of tariffs and higher cost inflation, keeping our savings plans on track, and further strengthening our supply chain. At the same time, we are intensifying commercial and service excellence to reach more customers and consumers through our innovations. With quality at the heart of our operations, our entire team is dedicated to delivering better care for more people.”
Group and segment performance
Comparable order intake increased 6%, driven by growth in both Diagnosis & Treatment and Connected Care and continued strong performance in North America and International Region. Group comparable sales increased 4%, with growth across all segments led by Personal Health.

Adjusted EBITA margin increased 40 basis points to 9.0%, mainly driven by higher sales and underlying gross margin, supported by recently launched innovations and productivity, despite the impact from higher tariffs and cost inflation. Income from operations increased to EUR 241 million. Free cash flow totaled EUR 28 million.

Diagnosis & Treatment comparable sales increased 2%. Adjusted EBITA margin was 9.8%, up 30 basis points, mainly driven by higher sales and productivity, partly offset by higher tariffs and cost inflation.

Connected Care comparable sales increased 3%. Adjusted EBITA margin declined 60 basis points to 2.9%, mainly due to the impact of higher tariffs and cost inflation, partly offset by productivity and higher sales.

Personal Health comparable sales increased 9%. Adjusted EBITA margin increased 60 basis points to 15.8%, driven by higher sales and productivity, and partly offset by higher tariffs, advertising and promotions spend, and cost inflation.
Quarterly Report 2026 - Q1
1



Innovation highlights
•Philips remains No. 1 in MedTech at the European Patent Office and the largest Dutch patent applicant, reflecting its leadership in health technology through AI-enabled, platform-based innovations that integrate hardware, software and data to improve care from hospital to home.
•Philips received FDA 510(k) clearance for two AI-powered cardiology solutions, reinforcing its platform-based innovation strategy. DeviceGuide integrates seamlessly with the Azurion platform to enable real-time guidance during mitral valve procedures and improve outcomes and workflow, while SmartHeart automates 14 standard and advanced cardiac MR views in one click under 30 seconds, reducing breath holds by up to 75%, enhancing efficiency and patient comfort.
•Philips strengthened its CT portfolio with FDA 510(k) clearance for two AI-enabled systems: Verida Spectral CT delivers anatomical and functional insights from a single low-dose scan, while Rembra CT combines industry-leading speed with an 85 cm wide bore, enabling near real-time imaging and efficient workflows for complex cases.
•Philips launched its Sonicare 1000-4000 Series, bringing its No. 1 dentist recommended sonic toothbrush brand technology to its most accessible price point. New ranges with Next-Generation Sonicare technology were also launched, including the 5700-7300 Series in the US, delivering a gentle yet effective clean with up to 10x more plaque removal, as well as the Sonicare 7000 in China, to continue to demonstrate leadership in the premium oral care segment.
•Philips signed a long-term strategic partnership with WellSpan Health, expanding its role as a preferred provider across all imaging modalities and advancing a systemwide approach to imaging and diagnostic technologies. The partnership will enable standardized platforms, life cycle management and integrated service delivery across WellSpan’s 12 hospitals and its diagnostic imaging centers and ambulatory surgery centers.
•Philips signed a five-year Enterprise Monitoring as a Service partnership with University Health San Antonio to enable system-wide patient monitoring. The scalable model supports standardized monitoring, centralized surveillance and advanced analytics, helping create a future-ready, integrated care environment.
•Philips expanded its partnership with AdventHealth through a five-year enterprise service agreement for imaging services across its network. The collaboration reintroduces Philips’ full-service model across modalities, while supporting long-term imaging infrastructure focused on quality and performance.

Productivity
Disciplined cost management and productivity initiatives delivered EUR 126 million in savings in the quarter. Philips is on track to deliver EUR 1.5 billion in savings under its 2026-2028 productivity program.

Outlook
Philips reiterates its full-year 2026 outlook:
• Comparable sales growth: 3%-4.5%
• Adjusted EBITA margin: 12.5%-13.0%
• Free cash flow: EUR 1.3-1.5 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. It excludes ongoing Philips Respironics-related proceedings, including the investigation by the US Department of Justice.

Capital allocation
To cover certain of its obligations arising from its long-term incentive plans, Philips will repurchase up to 4 million shares. At the current share price, the shares represent an amount of up to approximately EUR 91 million. The repurchases will be executed through one or more individual forward transactions, expected to be entered into in the second and/or the third quarter of 2026, in accordance with the Market Abuse Regulation and within the limits of the authorization granted by the company’s General Meeting of Shareholders. Philips expects to take delivery of the shares in Q4 2028. Further details will be available via this link.

Further information: conference call, video webcast and website
Roy Jakobs, CEO, and Charlotte Hanneman, CFO, will host a conference call for investors and analysts at 10:00 am CET today to discuss the first quarter results. A live webcast of the conference call will be available on the Philips Investor Relations webpage and can be accessed here. A replay and related materials, which include additional information, including forward-looking statements and further information on our outlook, will be available on the Philips Investor Relations webpage.

Quarterly Report 2026 - Q1
2

First quarter highlights
Key data in millions of EUR unless otherwise stated*
Q1 2026Q1 2025
Sales3,9054,097
Nominal sales growth(5%)(1%)
Comparable sales growth ¹4%(2%)
Comparable order intake ² 6%2%
Income from operations241154
as a % of sales6%4%
Financial income (expenses), net(47)(48)
Results of associates(4)(1)
Income tax (expense) benefit(44)(27)
Income from continuing operations14678
Discontinued operations, net of income taxes-(6)
Net income14672
Earnings per common share (EPS)
Income from continuing operations attributable to shareholders ³ (in EUR) - diluted0.160.09
Adjusted income from continuing operations attributable to shareholders ³ (in EUR) - diluted ¹0.230.25
Net income attributable to shareholders ³ (in EUR) - diluted0.160.08
EBITA ¹292211
as a % of sales7.5%5.2%
Adjusted EBITA ¹353354
as a % of sales9.0%8.6%
Adjusted EBITDA ¹567571
as a % of sales14.5%13.9%
1Non-IFRS financial measure. Refer to Reconciliation of non-IFRS information
2Comparable order intake is presented when discussing the Philips Group's performance. For the definition of this measure, refer to chapter Further information, section Other Key Performance Indicators, of the Annual Report 2025.
3Shareholders refers to shareholders of Koninklijke Philips N.V. Per share calculations have been adjusted retrospectively for all periods presented to reflect the issuance of shares in 2025 with respect to the share dividend for 2024.

•Comparable sales increased by 4%, driven by growth across all segments. Nominal sales decreased due to the negative impact of foreign currency in Q1 2026. Diagnosis & Treatment comparable sales increased by 2%, Connected Care by 3%, and Personal Health by 9%.
•Income from operations increased by EUR 87 million, mainly driven by operational improvements, and lower charges in restructuring, acquisition-related and other items, including a release of an acquisition-related provision, and partly offset by higher tariffs.
•Adjusted EBITA was EUR 353 million and the margin improved to 9.0%, mainly driven by sales growth, gross margin from innovation, and productivity measures, and partly offset by higher tariffs and cost inflation.
•Restructuring, acquisition-related and other items amounted to charges of EUR 61 million, compared with EUR 143 million in Q1 2025. The Q1 2026 result mainly includes EUR 61 million in restructuring charges and EUR 34 million of Respironics-related charges, and is partly offset by a EUR 42 million gain from the release of an acquisition-related provision.
•Income tax expense increased by EUR 17 million, mainly driven by higher income before tax.
•Net income increased to EUR 146 million, mainly driven by income from operations as explained above, and partly offset by higher tax expense.



Sales per geographic area in millions of EUR unless otherwise stated
% change
Q1 2026Q1 2025nominalcomparable ¹
Western Europe8948337%7%
North America1,6451,792(8%)5%
Other mature geographies337378(11%)1%
Mature geographies2,8773,002(4%)5%
Growth geographies1,0281,095(6%)0%
Philips Group3,9054,097(5%)4%
1Non-IFRS financial measure. Refer to Reconciliation of non-IFRS information

•Comparable sales in Mature geographies showed 5% growth, with strong contributions from North America and Western Europe.
•Growth geographies showed flat comparable sales. Growth in the Diagnosis & Treatment and Personal Health segments was mainly offset by segment Other and a slight decline in Connected Care.





Cash and cash equivalents balance in millions of EUR
Q1 2026Q1 2025
Beginning cash balance2,7942,401
Free cash flow ¹28(1,091)
Net cash flows from operating activities188(933)
Net capital expenditures(160)(158)
Other cash flows from investing activities(247)1
Treasury shares transactions12-
Changes in debt(34)(47)
Other cash flow items38(61)
Net cash flows from discontinued operations-(10)
Ending cash balance2,5921,193
1Non-IFRS financial measure. Refer to Reconciliation of non-IFRS information

•Net cash flows from operating activities increased, mainly driven by the comparative impact of the EUR 1,025 million payment of Philips Respironics recall-related medical monitoring and personal injury settlements in Q1 2025 and lower working capital outflows in Q1 2026.
•Other cash flows from investing activities included the acquisition of SpectraWAVE.
•Treasury shares included the cash receipt from employee option transactions.
•Other cash flow items mainly reflects the foreign currency impact on the cash balance.
Amounts may not add up due to rounding.*
Quarterly Report 2026 - Q1
3

Performance per segment
Diagnosis & Treatment
Key data in millions of EUR unless otherwise stated*
Q1 2026Q1 2025
Sales1,8481,965
Nominal sales growth(6%)(3%)
Comparable sales growth ¹2%(4%)
Income from operations194153
as a % of sales10.5%7.8%
EBITA ¹211173
as a % of sales11.4%8.8%
Adjusted EBITA ¹181187
as a % of sales9.8%9.5%
Adjusted EBITDA ¹228235
as a % of sales12.4%12.0%
1Non-IFRS financial measure. Refer to Reconciliation of non-IFRS information
•Comparable sales increased by 2%. High-single-digit growth in Image Guided Therapy was partly offset by a low-single-digit decline in Precision Diagnosis.
•Both Mature and Growth geographies recorded low-single-digit growth.
•Adjusted EBITA decreased to EUR 181 million while the margin improved to 9.8%, mainly driven by higher sales and productivity measures, and partly offset by higher tariffs and cost inflation.
•Restructuring, acquisition-related and other items amounted to a gain of EUR 30 million, mainly driven by the release of an acquisition-related provision, compared with a loss of EUR 14 million in Q1 2025.


Connected Care
Key data in millions of EUR unless otherwise stated
Q1 2026Q1 2025
Sales1,0621,182
Nominal sales growth(10%)2%
Comparable sales growth ¹3%0%
Income from operations(54)(81)
as a % of sales(5.0%)(6.9%)
EBITA ¹(28)(51)
as a % of sales(2.6%)(4.3%)
Adjusted EBITA ¹
3141
as a % of sales2.9%3.5%
Adjusted EBITDA ¹
85104
as a % of sales8.0%8.8%
1Non-IFRS financial measure. Refer to Reconciliation of non-IFRS information

•Comparable sales increased by 3%, mainly driven by mid-single-digit growth in Monitoring.
•Comparable sales in Mature geographies showed mid-single-digit growth. Growth geographies recorded a low-single-digit decline.
•Adjusted EBITA decreased to EUR 31 million and the margin was 2.9%, mainly due to higher tariffs and cost inflation, and partly offset by higher sales and productivity measures.
•Restructuring, acquisition-related and other items amounted to charges of EUR 59 million, compared with EUR 91 million in Q1 2025. Q1 2026 mainly includes EUR 23 million in restructuring and acquisition-related charges and EUR 34 million of Respironics-related charges.

Personal Health
Key data in millions of EUR unless otherwise stated
Q1 2026Q1 2025
Sales818811
Nominal sales growth1%3%
Comparable sales growth ¹9%1%
Income from operations124116
as a % of sales15.1%14.3%
EBITA ¹
127120
as a % of sales15.5%14.8%
Adjusted EBITA ¹129123
as a % of sales15.8%15.2%
Adjusted EBITDA ¹150147
as a % of sales18.4%18.1%
1Non-IFRS financial measure. Refer to Reconciliation of non-IFRS information

•Comparable sales increased by 9%, driven by double-digit growth in Growth geographies and high-single-digit growth in Mature geographies.
•Adjusted EBITA increased to EUR 129 million and the margin improved to 15.8%, mainly driven by sales growth and productivity measures, and partly offset by advertising and promotion spend, higher tariffs and cost inflation.
•Restructuring, acquisition-related and other items amounted to charges of EUR 2 million in Q1 2026, compared with EUR 3 million in Q1 2025.

Other
Key data in millions of EUR unless otherwise stated
Q1 2026Q1 2025
Sales177140
Income from operations(22)(33)
EBITA ¹(19)(31)
Adjusted EBITA ¹ of:114
IP Royalties8890
Innovation(11)(21)
Central costs(51)(60)
Other(16)(6)
Adjusted EBITDA ¹10485
1Non-IFRS financial measure. Refer to Reconciliation of non-IFRS information

•Segment Other sales increased by EUR 37 million, mainly reflecting activities related to a divestment, which is excluded from comparable sales growth.
•Adjusted EBITA improved by EUR 7 million, mainly driven by lower costs.
•Restructuring, acquisition-related and other items amounted to charges of EUR 30 million, compared with EUR 34 million in Q1 2025.
Amounts may not add up due to rounding.*
Quarterly Report 2026 - Q1
4

Forward-looking statements
and other information
Forward-looking statements
This document and the related oral presentation, including responses to questions following the presentation, contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. Examples of forward-looking statements include statements made about our strategy, estimates of sales growth, future Adjusted EBITA*, future restructuring and acquisition-related charges and other costs, future developments in Philips’ organic business and the completion of acquisitions and divestments. Forward-looking statements can be identified generally as those containing words such as “anticipates”, “assumes”, “believes”, “estimates”, “expects”, “should”, “will”, “will likely result”, “forecast”, “outlook”, “projects”, “may” or similar expressions. By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these statements.
These factors include, but are not limited to, macro-economic and geopolitical changes – including the war in Ukraine and ongoing tensions in the Middle East – as well as measures such as enacted and proposed tariffs and trade actions introduced in response to rising global tensions; Philips’ ability to keep pace with the changing health technology environment; Philips’ ability to gain leadership in artificial intelligence and health informatics in response to developments in the health technology industry; integration of acquisitions and their delivery on business plans and value creation expectations; ability to meet expectations with respect to ESG-related matters; securing and maintaining Philips’ intellectual property rights, and unauthorized use of third-party intellectual property rights; failure of products and services to meet quality or security standards, adversely affecting patient safety and customer operations; the resilience of our supply chain; challenges in simplifying our organization and our ways of working; attracting and retaining personnel; breach of cybersecurity; challenges in driving operational excellence and speed in bringing innovations to market; treasury and financing risks; tax risks; reliability of internal controls; compliance with regulations and standards involving quality, product safety, (cyber) security and artificial intelligence; and compliance with business conduct rules and regulations including privacy, existing and upcoming ESG disclosure and due diligence requirements. As a result, Philips’ actual future results may differ materially from the plans, goals and expectations set forth in such forward-looking statements. For a discussion of factors that could cause future results to differ from such forward-looking statements, see also the Further information chapter included in the Annual Report 2025.
Third-party market share data
Statements regarding market share contained in this document, including those regarding Philips’ competitive position, are based on outside sources such as specialized research institutes, as well as industry and dealer panels, in combination with management estimates. Where information is not yet available to Philips, market share statements may also be based on estimates and projections prepared by management and/or based on outside sources of information. Management’s estimates of rankings are based on order intake or sales, depending on the business.
Market Abuse Regulation
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
Use of non-IFRS information
In presenting and discussing the Philips Group’s financial position, operating results and cash flows, management uses certain non-IFRS financial measures. These non-IFRS financial measures should not be viewed in isolation as alternatives to the equivalent IFRS measure and should be used in conjunction with the most directly comparable IFRS measures. Non-IFRS financial measures do not have standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. A reconciliation of these non-IFRS measures to the most directly comparable IFRS measures is contained in this document. Further information on non-IFRS measures can be found in the Annual Report 2025.
Presentation
All amounts are in millions of euros unless otherwise stated. Due to rounding, amounts may not add up precisely to totals provided. All reported data is unaudited. Financial reporting is in accordance with the accounting policies as stated in the Annual Report 2025. Certain prior-year balances have been reclassified to conform to the current period presentation.
Per share calculations for all periods presented have been retrospectively adjusted to reflect the issuance of shares in 2025 with respect to the share dividend for 2024.
*    Non-IFRS financial measure. Refer to the Reconciliation of non-IFRS information
Quarterly Report 2026 - Q1
5

Condensed consolidated statements of income
In millions of EUR unless otherwise stated*
Q1
20262025
Sales3,9054,097
Cost of sales(2,140)(2,248)
Gross margin1,7661,849
Selling expenses(1,007)(1,087)
General and administrative expenses(177)(161)
Research and development expenses(394)(457)
Other business income7219
Other business expenses(18)(8)
Income from operations241154
Financial income3533
Financial expenses(83)(82)
Results of associates(4)(1)
Income before taxes190104
Income tax (expense) benefit(44)(27)
Income from continuing operations14678
Discontinued operations, net of income taxes-(6)
Net income14672
Attribution of net income
Net income attributable to shareholders ¹15176
Net income attributable to non-controlling interests(5)(4)
1Shareholders refers to shareholders of Koninklijke Philips N.V.

Philips Group
Earnings per common share attributable to shareholders of Koninklijke Philips N.V.
Q1
20262025
Weighted average number of common shares outstanding (after deduction of treasury shares) during the period (in thousands) ¹:
Basic951,572944,671
Diluted968,530957,743
Basic earnings per common share attributable to shareholders of Koninklijke Philips N.V (in EUR) ¹
Income from continuing operations0.16 0.09 
Income from discontinued operations- (0.01)
Net income0.16 0.08 
Diluted earnings per common share attributable to shareholders of Koninklijke Philips N.V. (in EUR) ¹
Income from continuing operations0.16 0.09 
Income from discontinued operations- (0.01)
Net income0.160.08 
1Per share calculations have been adjusted retrospectively for all periods presented to reflect the issuance of shares in 2025 with respect to the share dividend for 2024.

Amounts may not add up due to rounding.*
Quarterly Report 2026 - Q1
6

Condensed consolidated statements of comprehensive income
in millions of EUR*
Q1
20262025
Net income for the period14672
Pensions and other post-employment plans:
Remeasurement, before tax11
Income tax effect on remeasurements22
Financial assets fair value through OCI:
Net current-period change, before tax(6)(4)
Total of items that will not be reclassified to Income statement(3)(1)
Currency translation differences:
Net current-period change, before tax257(439)
Cash flow hedges:
Net current-period change, before tax(3)8
Reclassification adjustment for (gain) loss realized(18)-
Income tax effect on net current-period change and reclassification5(3)
Total of items that are or may be reclassified to Income statement242(434)
Other comprehensive income for the period239(434)
Total comprehensive income for the period385(362)
Total comprehensive income attributable to:
Shareholders of Koninklijke Philips N.V.390(358)
Non-controlling interests(5)(5)

Amounts may not add up due to rounding.*
Quarterly Report 2026 - Q1
7

Condensed consolidated balance sheets
in millions of EUR*
March 31, 2026December 31, 2025
Non-current assets:
Property, plant and equipment2,1812,217
Goodwill9,6119,271
Intangible assets excluding goodwill2,6852,569
Non-current receivables220210
Investments in associates142148
Other non-current financial assets708704
Deferred tax assets1,8141,773
Other non-current assets120119
Total non-current assets17,48217,012
Current assets:
Inventories3,1102,870
Other current assets627529
Current derivative financial assets7781
Income tax receivable4560
Current receivables3,2623,530
Assets classified as held for sale7067
Cash and cash equivalents2,5922,794
Total current assets9,7849,932
Total assets27,26626,944
Equity:
Shareholders’ equity11,39210,957
Non-controlling interests2632
Group equity11,41810,990
Non-current liabilities:
Long-term debt6,8916,934
Long-term provisions879915
Deferred tax liabilities9193
Non-current contract liabilities438458
Other non-current liabilities11847
Total non-current liabilities8,4178,446
Current liabilities:
Short-term debt1,2061,151
Current derivative financial liabilities5034
Income tax liabilities198174
Accounts payable1,9901,927
Accrued liabilities1,3251,616
Current contract liabilities1,6171,490
Short-term provisions602712
Liabilities directly associated with assets held for sale99
Other current liabilities435395
Total current liabilities7,4317,509
Total liabilities15,84815,954
Total liabilities and group equity27,26626,944

Amounts may not add up due to rounding.*
Quarterly Report 2026 - Q1
8

Condensed consolidated statements of cash flows
in millions of EUR*
Q1
20262025
Cash flows from operating activities:
Net income (loss)14672
Results of discontinued operations - net of income tax-6
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Depreciation, amortization and impairment of assets265276
Share-based compensation3048
Net loss (gain) on sale of assets13(2)
Interest income(22)(29)
Interest expense on debt, borrowings and other liabilities7265
Results of associates41
Income tax expense4427
Decrease (increase) in working capital:(110)(216)
Decrease (increase) in receivables and other current assets232198
Decrease (increase) in inventories(226)(248)
Increase (decrease) in accounts payable, accrued and other current liabilities(115)(165)
Decrease (increase) in non-current receivables and other assets(13)(38)
Increase (decrease) in other liabilities18(25)
Increase (decrease) in provisions(159)(1,066)
Other items(40)58
Interest received2330
Interest paid(55)(61)
Dividends received from investments in associates78
Income taxes received/ (paid)(34)(86)
Net cash provided by (used for) operating activities188(933)
Cash flows from investing activities:
Net capital expenditures(160)(158)
Purchase of intangible assets(27)(46)
Expenditures on development assets(63)(60)
Capital expenditures on property, plant and equipment(73)(55)
Proceeds from sales of property, plant and equipment32
Net proceeds from (cash used for) derivatives and current financial assets(15)(3)
Purchase of other non-current financial assets(34)(14)
Proceeds from other non-current financial assets2427
Purchase of businesses, net of cash acquired(229)(1)
Sale of interests in businesses, net of cash disposed of8(9)
Net cash provided by (used for) investing activities(406)(157)
Cash flows from financing activities:
Proceeds from issuance of (payments on) short-term debt117
Principal payments on short-term portion of long-term debt(55)(63)
Proceeds from issuance of long-term debt109
Re-issuance of treasury shares12-
Dividends paid to shareholders of non-controlling interests(1)(1)
Net cash provided by (used for) financing activities(23)(48)
Net cash provided by (used for) continuing operations(241)(1,138)
Net cash provided by (used for) discontinued operations-(10)
Net cash provided by (used for) continuing and discontinued operations(241)(1,148)
Effect of change in exchange rates on cash and cash equivalents39(60)
Cash and cash equivalents at the beginning of the period2,7942,401
Cash and cash equivalents at the end of the period2,5921,193
Amounts may not add up due to rounding.*
Quarterly Report 2026 - Q1
9

Condensed consolidated statements of changes in equity
in millions of EUR*
Common sharesCapital in excess of par valueCash flow hedgesCurrency translation differencesTreasury sharesShare-based compensationFair value through OCIRetained earningsTotal shareholders’ equityNon-controlling interestsGroup equity
Reserves
Balance as of December 31, 20241886,75512,014(411)(102)(90)3,65012,0063712,043
Net income-------7676(4)72
Other comprehensive income (loss)
--5(437)--(4)3(433)(1)(434)
Total comprehensive income (loss)--5(437)--(4)79(358)(5)(362)
Dividend distributed---------(1)(1)
Share-based compensation plans----247--49-49
Balance as of March 31, 20251886,75561,577(409)(55)(94)3,72811,6973111,728
Balance as of December 31, 20251937,21233347(298)(17)(89)3,57510,9573210,990
Net income-------151151(5)146
Other comprehensive income (loss)
--(15)257--(6)3239-239
Total comprehensive income (loss)--(15)257--(6)154390(5)385
Dividend distributed---------(1)(1)
Share-based compensation plans----3328-(16)45-45
Balance as of March 31, 20261937,21218604(265)11(95)3,71311,3922611,418

Amounts may not add up due to rounding.*
Quarterly Report 2026 - Q1
10

Reconciliation of non-IFRS information
Certain non-IFRS financial measures are presented when discussing the Philips Group’s performance:
•Comparable sales growth
•Adjusted income from continuing operations attributable to shareholders
•Adjusted income from continuing operations attributable to shareholders per common share (in EUR) - diluted (Adjusted EPS)
•EBITA
•Adjusted EBITA
•Adjusted EBITDA
•Free cash flow
•Net debt : group equity ratio


For the definitions of the non-IFRS financial measures listed above, refer to chapter Further information, section Reconciliation of non-IFRS information, of the Annual Report 2025 and to the Forward-looking statements and other information.
Comparable order intake is not a financial measure, but is presented when discussing the Philips Group’s performance. Refer to Forward-looking statements and other information.


Sales growth composition in %
Q1 2026
nominal growthconsolidation changescurrency effectscomparable growth
2026 versus 2025
Diagnosis & Treatment(5.9%)0.0%7.8%1.8%
Connected Care(10.2%)3.9%9.5%3.2%
Personal Health1.0%0.0%7.8%8.8%
Philips Group(4.7%)0.3%8.0%3.7%
Adjusted income from continuing operations attributable to shareholders 1 in millions of EUR unless otherwise stated
Q1
20262025
Net income14672
Discontinued operations, net of income taxes-6
Income from continuing operations14678
Income from continuing operations attributable to non-controlling interests54
Income from continuing operations attributable to shareholders ¹
15281
Adjustments for:
Amortization and impairment of acquired intangible assets5057
Restructuring and acquisition-related charges2267
Other items:3976
Respironics consent decree charges2028
Respironics field-action running costs1437
Quality actions58
Remaining items-4
Net finance expenses(3)5
Tax impact on adjusting items(36)(50)
Adjusted income from continuing operations attributable to shareholders ¹224237
Earnings per common share ²:
Income from continuing operations attributable to shareholders ¹ per common share (in EUR) - diluted0.160.09
Adjusted income from continuing operations attributable to shareholders ¹ per common share (in EUR) - diluted0.230.25
1Shareholders refers to shareholders of Koninklijke Philips N.V.
2 Per share calculations have been adjusted retrospectively for all periods presented to reflect the issuance of shares in 2025 with respect to the share dividend for 2024.

Quarterly Report 2026 - Q1
11

Reconciliation of Net income to Adjusted EBITA and Adjusted EBITDA in millions of EUR
Philips GroupDiagnosis & TreatmentConnected CarePersonal HealthOther
Q1 2026
Net income146 
Income tax expense (benefit)44
Results of associates4
Financial expenses83
Financial income(35)
Income from operations241 194 (54)124 (22)
Amortization and impairment of acquired intangible assets50 17 26 3 3 
EBITA292 211 (28)127 (19)
Restructuring and acquisition-related charges22(34)23230
Other items:39435--
Respironics consent decree charges20-20--
Respironics field-action running costs14-14--
Quality actions541--
Adjusted EBITA353 181 31 129 11 
Depreciation, amortization and impairment of fixed assets and other intangible assets21547542193
Adding back impairment of fixed assets included in Restructuring and acquisition-related charges and Other items- - - - - 
Adjusted EBITDA56722885150104
Philips GroupDiagnosis & TreatmentConnected CarePersonal HealthOther
Q1 2025
Net income72
Discontinued operations, net of income taxes6
Income tax expense (benefit)27
Results of associates1
Financial expenses82
Financial income(33)
Income from operations154153(81)116(33)
Amortization and impairment of acquired intangible assets57203143
EBITA211173(51)120(31)
Restructuring and acquisition-related charges671415334
Other items:76-76--
Respironics consent decree charges28-28--
Respironics field-action running costs37-37--
Quality actions8-8--
Remaining items4-4--
Adjusted EBITA354187411234
Depreciation, amortization and impairment of fixed assets and other intangible assets21949632682
Adding back impairment of fixed assets included in Restructuring and acquisition-related charges and Other items(3)(1)-(2)-
Adjusted EBITDA57123510414785


Quarterly Report 2026 - Q1
12

Composition of free cash flow in millions of EUR
Q1
20262025
Net cash flows from operating activities188(933)
Net capital expenditures(160)(158)
Purchase of intangible assets(27)(46)
Expenditures on development assets(63)(60)
Capital expenditures on property, plant and equipment(73)(55)
Proceeds from sales of property, plant and equipment32
Free cash flow28(1,091)
Composition of net debt to group equity in millions of EUR unless otherwise stated
March 31, 2026December 31, 2025
Long-term debt6,8916,934
Short-term debt1,2061,151
Total debt8,0978,084
Cash and cash equivalents2,5922,794
Net debt5,5055,290
Shareholders’ equity11,39210,957
Non-controlling interests2632
Group equity11,41810,990
Net debt : group equity ratio33:6732:68

Quarterly Report 2026 - Q1
13

Philips statistics
Quarterly statistics in millions of EUR unless otherwise stated
20262025
Q1Q2Q3Q4Q1Q2Q3Q4
Sales3,9054,0974,3384,3025,097
Nominal sales growth(5%)(1%)(3%)(2%)1%
Comparable sales growth ¹
4%(2%)1%3%7%
Comparable order intake ² 6%2%6%8%7%
Gross margin1,7661,8492,0111,9112,288
as a % of sales45%45%46%44%45%
Selling expenses(1,007)(1,087)(1,084)(1,024)(1,147)
as a % of sales(26%)(27%)(25%)(24%)(23%)
G&A expenses(177)(161)(155)(154)(158)
as a % of sales(5%)(4%)(4%)(4%)(3%)
R&D expenses(394)(457)(402)(414)(427)
as a % of sales(10%)(11%)(9%)(10%)(8%)
Income from operations241154400330540
as a % of sales6%4%9%8%11%
Net income14672240187397
Income from continuing operations attributable to shareholders ³ per common share (in EUR) - diluted0.160.090.250.190.41
Adjusted income from continuing operations attributable to shareholders ³ per common share (in EUR) - diluted ¹0.230.250.360.360.60
EBITA ¹
292211453409591
as a % of sales7.5%5.2%10.5%9.5%11.6%
Adjusted EBITA ¹353354540531770
as a % of sales9.0%8.6%12.4%12.3%15.1%
Adjusted EBITDA ¹567571747738991
as a % of sales14.5%13.9%17.2%17.2%19.4%
At the end of period:
Number of common shares outstanding (after deduction of treasury shares) in thousands952,018925,084950,574950,979951,289
Shareholders’ equity per common share in EUR11.9712.6410.9211.1011.52
Net debt : group equity ratio ¹33:6735:6539:6138:6232:68
Philips employees64,31765,55365,56665,28464,817
1Non-IFRS financial measure. Refer to the Reconciliation of non-IFRS information
2Comparable order intake is presented when discussing the Philips Group's performance. For the definition of this measure, refer to chapter Further information, section Other Key Performance Indicators, of the Annual Report 2025.
3Shareholders refers to shareholders of Koninklijke Philips N.V. Per share calculations have been adjusted retrospectively for all periods presented to reflect the issuance of shares in 2025 with respect to the share dividend for 2024.



Quarterly Report 2026 - Q1
14

Year-to-date statistics in millions of EUR unless otherwise stated
20262025
January-MarchJanuary-JuneJanuary-SeptemberJanuary-DecemberJanuary-MarchJanuary-JuneJanuary-SeptemberJanuary-December
Sales3,9054,0978,43412,73617,834
Nominal sales growth(5%)(1%)(2%)(2%)(1%)
Comparable sales growth ¹4%(2%)(1%)1%2%
Comparable order intake ² 6%2%4%6%6%
Gross margin1,7661,8493,8595,7708,058
as a % of sales45%45%46%45%45%
Selling expenses(1,007)(1,087)(2,171)(3,195)(4,342)
as a % of sales(26%)(27%)(26%)(25%)(24%)
G&A expenses(177)(161)(316)(470)(628)
as a % of sales(5%)(4%)(4%)(4%)(4%)
R&D expenses(394)(457)(859)(1,273)(1,700)
as a % of sales(10%)(11%)(10%)(10%)(10%)
Income from operations2411545548841,424
as a % of sales6%4%7%7%8%
Net income14672312499897
Income from continuing operations attributable to shareholders ³ per common share (in EUR) - diluted0.160.090.340.530.93
Adjusted income from continuing operations attributable to shareholders ³ per common share (in EUR) - diluted ¹0.230.250.610.961.56
EBITA ¹2922116651,0741,665
as a % of sales7.5%5.2%7.9%8.4%9.3%
Adjusted EBITA ¹3533548941,4252,195
as a % of sales9.0%8.6%10.6%11.2%12.3%
Adjusted EBITDA ¹5675711,3172,0563,046
as a % of sales14.5%13.9%15.6%16.1%17.1%
1Non-IFRS financial measure. Refer to the Reconciliation of non-IFRS information
2Comparable order intake is presented when discussing the Philips Group's performance. For the definition of this measure, refer to chapter Further information, section Other Key Performance Indicators, of the Annual Report 2025.
3Shareholders refers to shareholders of Koninklijke Philips N.V. Per share calculations have been adjusted retrospectively for all periods presented to reflect the issuance of shares in 2025 with respect to the share dividend for 2024.

© 2026 Koninklijke Philips N.V.
All rights reserved.
https://www.philips.com/investorrelations
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Source: View Original Filing on SEC EDGAR

FAQ

How did Philips (PHG) perform financially in Q1 2026?

Philips reported Q1 2026 sales of EUR 3.9 billion with 4% comparable sales growth. Income from operations rose to EUR 241 million, net income reached EUR 146 million, and adjusted EBITA was EUR 353 million with a 9.0% margin, up 40 basis points year-on-year.

What are Philips (PHG) 2026 outlook targets after Q1 2026?

Philips reiterated its full-year 2026 outlook, targeting 3%–4.5% comparable sales growth, an adjusted EBITA margin of 12.5%–13.0%, and EUR 1.3–1.5 billion free cash flow. The outlook includes known tariff impacts but excludes any IEEPA tariff refunds and Philips Respironics-related proceedings.

How did Philips’ business segments perform in Q1 2026?

In Q1 2026, Diagnosis & Treatment delivered 2% comparable sales growth and a 9.8% adjusted EBITA margin. Connected Care grew comparable sales 3% with a 2.9% margin, while Personal Health achieved 9% comparable sales growth and a stronger 15.8% adjusted EBITA margin, reflecting robust consumer demand.

What was Philips (PHG) free cash flow and cash position in Q1 2026?

Philips generated EUR 28 million free cash flow in Q1 2026, a sharp improvement from a EUR 1,091 million outflow in Q1 2025. Net cash from operating activities was EUR 188 million, and cash and cash equivalents ended the quarter at EUR 2,592 million, providing liquidity support.

What AI and regulatory innovation milestones did Philips achieve in Q1 2026?

Philips obtained FDA 510(k) clearance for AI-powered cardiology tools SmartHeart and DeviceGuide, plus two AI-enabled CT systems, Verida Spectral CT and Rembra CT. These solutions integrate hardware, software and AI to enhance imaging workflows, guidance and patient comfort across cardiac and CT procedures.

Is Philips (PHG) conducting any share repurchases following Q1 2026?

Philips plans to repurchase up to 4 million shares to cover obligations from long-term incentive plans. At the current share price, this corresponds to about EUR 91 million. The repurchases will be executed via forward transactions, with share delivery expected in Q4 2028.

How did tariffs and cost inflation affect Philips’ Q1 2026 margins?

Tariffs and cost inflation weighed on margins, particularly in Connected Care, where adjusted EBITA margin fell to 2.9%. Across the group, these pressures were partly offset by higher sales, innovation-driven gross margin improvements, and productivity savings of EUR 126 million recorded in the quarter.