Strong Quarterly Performance Aligns With Analyst Expectations
Dutch medical technology company Philips announced a robust performance for the third quarter of 2025, with sales increasing by 3% to 4.3 billion euros (approximately $5.0 billion), in line with analyst forecasts. Growth was reported across all business segments, with particular strength in the North American market[1][2][3].
Financial Highlights
- Sales: 4.3 billion euros, reflecting 3% year-on-year growth
- Adjusted EBITA: 531 million euros, surpassing market expectations
- Free cash flow: Increased to 172 million euros
- Comparable order intake: Up by 8% in Q3
- Productivity Savings: 222 million euros achieved this quarter, with progress towards the 2.5 billion euro, three-year productivity program[2]
Segment Performance
- Diagnosis & Treatment: Sales grew 1.3%, with an adjusted EBITA margin of 11.8%, impacted by tariffs but partially offset by margins from recent innovations[2]
- Connected Care: Sales grew 5.1%, with a 410 basis point margin improvement to 11.4%, supported by higher sales and productivity gains[2]
- Personal Health: Sales rose 10.9%, and margin increased to 17.1%, driven by strong sales and productivity improvements[2]
Innovation, Partnerships, and Patient Safety
Philips credited its momentum to innovation, including
AI-powered tools and new long-term partnerships that are benefiting both patients and consumers. The company highlighted the installation of the first Azurion system in Indonesia as a step towards expanding access to advanced, minimally invasive care in the region. CEO Roy Jakobs emphasized that patient safety and quality remain top priorities for the company[2].
Productivity and Sustainability Commitments
The company’s disciplined cost management and productivity initiatives resulted in significant savings, helping Philips stay firmly on track with its multi-year program. Philips has also made notable progress toward its sustainability objectives, aiming to improve the lives of 2.5 billion people per year by 2030 and meet targets for the reduction of environmental impacts, including zero waste to landfill across all industrial sites and reduced water consumption[3].
Full-Year Outlook Maintained
Philips reiterated its confidence in achieving its full-year 2025 outlook, excluding the ongoing Philips Respironics-related proceedings. The company emphasizes a focus on delivering continued performance despite macroeconomic uncertainties, including tariffs. The outlook remains subject to the ongoing regulatory developments related to Philips Respironics in the United States[2].
Leadership Commentary
Roy Jakobs, CEO, commented: “In this quarter we maintained our momentum, with AI-powered innovations and long-term partnerships making a real difference for patients and consumers. 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.”[2]
