Philips Q1 Sales €3.9B, Order Intake +6%, EBITA Margin Up 40bps
Philips reported Q1 sales of €3.9 billion, up 4% on a comparable basis with 6% order intake growth and adjusted EBITA margin expanding 40 bps to 9% and free cash flow of €28 million. It reaffirmed 2026 targets: 3–4.5% sales growth, a 12.5–13% EBITA margin and up to €91 million share repurchases.
1. Q1 Financial Results
Philips delivered group sales of €3.9 billion in Q1, up 4% on a comparable basis. Order intake rose 6%, adjusted EBITA margin expanded 40 basis points to 9.0%, income from operations totaled €241 million, and free cash flow reached €28 million.
2. Segment Performance
Diagnosis & Treatment sales increased 2% with a 9.8% adjusted EBITA margin, Connected Care sales rose 3% despite a 60 basis point margin decline to 2.9%, and Personal Health led growth with a 9% sales increase and a 15.8% margin.
3. Innovation and Partnerships
The company secured FDA 510(k) clearances for AI solutions SmartHeart and DeviceGuide, expanded its CT portfolio with Verida Spectral CT and Rembra CT approvals, launched new Sonicare toothbrush series, and signed multi-year enterprise agreements with WellSpan Health, University Health San Antonio, and AdventHealth.
4. Outlook and Capital Allocation
Philips reiterated its 2026 targets of 3–4.5% comparable sales growth, a 12.5–13% adjusted EBITA margin and €1.3–1.5 billion free cash flow, while committing up to €91 million to share repurchases and advancing a €1.5 billion productivity savings program through 2028.