Philips (NYSE: PHG) reported Q2 EPS of EUR0.36, EUR0.04 better than the analyst estimate of EUR0.32. Revenue for the quarter came in at EUR4.34 billion versus the consensus estimate of EUR5.02 billion.

Outlook

Philips updates its outlook, including currently announced tariff impact, which has evolved and continues to be dynamic: • Comparable sales growth range reiterated at 1%-3% with sequential improvement as the year progresses. • Adjusted EBITA margin range increased to 11.3%-11.8%, a 50 bps increase versus our previous outlook. This includes an estimated tariff impact of EUR 150-200 million after substantial mitigations, compared to EUR 250-300 million previously; Adjusted EBITA margin in Q3 expected to be lower than in 2024 primarily due to tariff impact phasing. • Free cash flow increased to EUR 0.2 billion - EUR 0.4 billion for the full year (including the payout in the first quarter of 2025 of EUR 1,025 million Philips Respironics recall-related medical monitoring and personal injury settlements in the US). This outlook excludes ongoing Philips Respironics-related proceedings, including the investigation by the US Department of Justice.

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