On Tuesday, Koninklijke Philips NV ( PHG ) reported third-quarter 2025 adjusted earnings per share of 42 cents (or 0.36 euros), beating the consensus of 37 cents.

The Dutch healthcare technology group reported quarterly sales of $5.03 billion (4.302 billion euros), in line with the consensus.

Comparable sales increased by 3%, driven by growth across all segments. The Diagnosis & Treatment segment recorded 1% growth, Connected Care recorded 5% growth, and Personal Health showed 11% growth.

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Income from operations decreased to 330 million euros, mainly due to higher amortization, mostly offset by operational improvements.

Adjusted EBITA increased to 531 million, and the margin improved to 12.3%, mainly driven by sales growth, favorable mix effects, and productivity measures, partly offset by higher tariffs.

“We drove strong order intake and accelerated sales growth, with sustained strength in North America. We expanded margin through innovation, focused execution, and cost discipline, remaining firmly on track as we navigate an uncertain macro environment including tariffs,” Roy Jakobs, CEO of Royal Philips, said in a press release on Tuesday.

Philips said cost management and productivity initiatives delivered savings of 222 million in the quarter. Philips will deliver its three-year, 2.5 billion euros productivity program, including 800 million euros of productivity savings in 2025.

Outlook

Philips reiterates full-year 2025 outlook, with comparable sales growth of 1%—3% remaining unchanged.

Adjusted EBITA margin range to be 11.3%-11.8%, now expected toward the upper end of the range.

The company anticipates free cash flow of 200-400 million euros (including the payout of 1.025 billion euros in the first quarter of 2025 from Philips Respironics recall-related medical monitoring and personal injury settlements in the U.S.).

Price Action: PHG stock was trading higher by 3.05% to $28.04 premarket at last check Tuesday.

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