Royal Philips reported steady financial gains in the second quarter of 2025, with higher order volumes and expanded margins prompting the Dutch health technology company to raise its full-year earnings and cash flow outlook.

Comparable order intake rose 6% year-over-year, reversing earlier declines and reinforcing a trend the company attributed to new product launches and increased productivity. Group sales reached €4.3 billion, reflecting 1% growth in comparable sales, while adjusted EBITA margin improved by 130 basis points to 12.4%. Free cash flow rose to €230 million.

In a statement, CEO Roy Jakobs said, “We built order intake growth momentum, supported by our recently launched AI-powered innovations.” He added that a nationwide agreement with Indonesia’s Ministry of Health demonstrates the company's ability to scale access to advanced therapies in key markets.
Segment performance was mixed. Diagnosis & Treatment and Connected Care both saw 1% declines in comparable sales, but each recorded improved margins — 13.5% and 10.4%, respectively — driven by product mix and cost controls. Personal Health posted 6% sales growth, led by strong demand outside China, though its margin declined to 15.2% due to increased spending on advertising.

Among recent developments, Philips received FDA 510(k) clearance for its SmartSpeed Precise MR software and signed multiple long-term monitoring partnerships with U.S. and European health systems. The company also began shipping its latest CT systems to University Health San Antonio and launched the RADIQAL clinical trial for new low-dose imaging technology.

The company raised its full-year adjusted EBITA margin forecast to between 11.3% and 11.8%, up from a prior range, despite headwinds from tariffs and currency movements. It reiterated its 1% to 3% sales growth target.

Philips noted that these projections do not factor in potential liabilities related to ongoing proceedings involving Philips Respironics, including a U.S. Department of Justice investigation.

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