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.
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.
Click here to view the release online
For further information, please contact:
Michael Fuchs
Philips Global External Relations
Tel.: +31 6 1486 9261
E-mail: michael.fuchs@philips.com
Dorin Danu
Philips Investor Relations
Tel.: +31 20 59 77055
E-mail: dorin.danu@philips.com
About Royal Philips
Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people’s health and well-being through meaningful innovation. Philips’ patient- and people-centric innovation leverages advanced technology and deep clinical and consumer insights to deliver personal health solutions for consumers and professional health solutions for healthcare providers and their patients in the hospital and the home.
Headquartered in the Netherlands, the company is a leader in diagnostic imaging, ultrasound, image-guided therapy, monitoring and enterprise informatics, as well as in personal health. Philips generated 2025 sales of EUR 18 billion and employs approximately 64,300 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.