Koninklijke Philips N.V. (PHIA) AI Stock Analysis

• Market Cap: €25.29B
• Dividend Yield: 3.73%
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 28.2
• Beta (1Y): 0.86
• Revenue Growth: -0.81%
• EPS Growth: -54.90%
• Country: NL
• Employees: 67,247
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.60
• Shares Outstanding: 962,920,100
• 10 Day Avg. Volume: 1,198,930
• 30 Day Avg. Volume: 1,333,770
• PEG Ratio: -0.11
• Price to Book (P/B): 2.01
• Price to Sales (P/S): 1.24
• P/FCF Ratio: 24.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €26.23
• Price Target Upside: -0.34% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: €28.00 ▲(6.38% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by improving financial performance (profitability rebound and strong 2025 free cash flow), supported by a clear uptrend in technicals. These positives are tempered by historical earnings volatility and a mixed valuation profile (higher P/E despite a solid dividend yield).

Positive Factors

Improved cash generation

Philips’ material free cash flow rebound in 2025 and generally positive operating cash generation since 2023 provide durable financial flexibility. Strong FCF supports reinvestment in R&D, debt servicing and strategic M&A, reducing reliance on external funding over the medium term.

Advanced product innovation (AI & MRI/CT)

The rollout of AI-native systems like Verida and helium-free BlueSeal MRI signals sustained clinical differentiation. Platform-level innovations and AI integration strengthen competitive moats, enable higher-margin software/services, and increase switching costs for health systems over years.

Diversified, recurring revenue streams

A multi‑pillar model — devices plus recurring software, service and subscription revenues — smooths cash flow and raises lifetime customer value. Recurring contracts and enterprise-scale monitoring solutions support steadier revenue and margin sustainability over multi-year cycles.

Negative Factors

Historical earnings volatility

Significant multi-year profit volatility undermines confidence in consistent margin and earnings power. While 2025 shows improvement, the prior loss years indicate operational sensitivity to cycles, execution risk and product issues that can re-emerge and press margins over the medium term.

Balance-sheet contraction & higher debt

Declining equity, rising debt and shrinking assets point to balance-sheet strain. Moderate leverage limits headroom for large-scale investment or buffering against shocks, increasing refinancing and credit costs risk and constraining capital allocation flexibility over coming quarters.

Divestiture reduces product breadth

Exiting the Emergency Care unit removes an established installed base and recurring service revenue, narrowing Philips’ product breadth. Loss of scale and complementary revenue streams can lower cross‑sell opportunities and lengthen payback on remaining portfolio investments.

Koninklijke Philips N.V. Business Overview & Revenue Model

Company Description

Koninklijke Philips N.V. operates as a health technology company in North America and internationally. It operates through Diagnosis & Treatment Businesses, Connected Care Businesses, and Personal Health Businesses segments. The company provides diagnostic imaging solutions, includes magnetic resonance imaging, computed tomography (CT) systems, X-ray systems, and detector-based spectral CT solutions, as well as molecular and hybrid imaging solutions for nuclear medicine; integrated interventional systems; echography solutions focused on diagnosis, treatment planning and guidance for cardiology, general imaging, obstetrics/gynecology, and point-of-care applications; proprietary software to enable diagnostics and intervention; and enterprise diagnostic informatics products and services. It also offers acute patient management solutions; emergency care solutions; sleep and respiratory care solutions; and electronic medical record and care management solutions. In addition, the company provides power toothbrushes, brush heads, and interdental cleaning and teeth whitening products; infant feeding and digital parental solutions; and male grooming and beauty products and solutions. It has a strategic collaboration with Ibex Medical Analytics Ltd. to jointly promote the digital pathology and AI solutions to hospitals, health networks, and pathology laboratories worldwide, as well as a strategic partnership agreement with NICO.LAB. The company was formerly known as Koninklijke Philips Electronics N.V. and changed its name to Koninklijke Philips N.V. in May 2013. Koninklijke Philips N.V. was founded in 1891 and is headquartered in Amsterdam, the Netherlands.

How the Company Makes Money

Philips generates revenue through multiple key streams, primarily from its three main sectors: Personal Health, Diagnosis & Treatment, and Connected Care. The company earns money by selling medical equipment such as imaging systems, patient monitoring solutions, and other diagnostic tools, which are essential in hospitals and healthcare facilities. Additionally, Philips has a strong presence in consumer health products, including personal care items and home healthcare devices, contributing to its revenue. The company also benefits from recurring revenue through software solutions, maintenance contracts, and subscription services, which provide ongoing support to healthcare providers. Strategic partnerships with healthcare institutions and technology companies further enhance its market reach and innovation capabilities, driving additional revenue growth.

Koninklijke Philips N.V. Financial Statement Overview

Summary

Financials are improving, driven by a return to profitability in 2025 (net income €0.9B; EBIT €1.65B) and strong 2025 free cash flow (~€0.90B, +242%). Offsetting this, results were volatile across 2022–2024 with losses and cash-flow variability, and the balance sheet shows some weakening (equity down since 2022 and total debt rising in 2025).

Income Statement

Profitability has clearly improved after the 2022–2024 loss period: 2025 returned to positive earnings (net income €0.9B vs. a loss in 2024) and operating profit strengthened materially (EBIT €1.65B vs. €0.53B in 2024). Revenue has been relatively stable around ~€18B for several years, with 2025 showing a strong rebound in growth (+29.8%) after slight contraction in 2024. Offsetting this, the last four-year pattern shows meaningful volatility (deep 2022 operating loss, continued losses in 2023–2024), which lowers confidence in the consistency of margins and earnings power.

Balance Sheet

Leverage appears manageable for the business: debt-to-equity was ~0.62–0.64 in 2023–2024, indicating moderate balance-sheet risk rather than aggressive leverage. However, equity has trended down from 2022 to 2025 (from ~€13.25B to ~€10.96B), and total debt increased in 2025 (to ~€8.09B). Total assets have also declined over time (from ~€30.7B in 2022 to ~€26.9B in 2025), suggesting balance-sheet contraction and/or asset write-down pressure, which is a key watch item.

Cash Flow

Cash generation is a relative strength. Free cash flow was positive in every year except 2022, and operating cash flow has been consistently positive again since 2023. 2025 delivered strong free-cash-flow growth (+242%) with free cash flow of ~€0.90B, supporting financial flexibility. The main weakness is variability: 2022 saw negative operating and free cash flow, and free cash flow declined in 2024 versus 2023, highlighting that cash conversion can swing meaningfully year to year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.83B	18.02B	18.17B	17.83B	17.16B
Gross Profit	8.06B	7.77B	7.45B	7.19B	7.17B
EBITDA	2.77B	1.85B	1.04B	-280.00M	1.73B
Net Income	896.00M	-702.00M	-466.00M	-1.61B	3.32B
Balance Sheet
Total Assets	26.94B	28.98B	29.41B	30.69B	30.96B
Cash, Cash Equivalents and Short-Term Investments	2.79B	2.40B	1.87B	1.18B	2.31B
Total Debt	8.09B	7.49B	7.69B	8.20B	6.98B
Total Liabilities	15.96B	16.93B	17.34B	17.41B	16.49B
Stockholders Equity	10.96B	12.01B	12.03B	13.25B	14.44B
Cash Flow
Free Cash Flow	903.00M	893.00M	1.49B	-979.00M	866.00M
Operating Cash Flow	1.17B	1.57B	2.14B	-173.00M	1.63B
Investing Cash Flow	-747.00M	-573.00M	-636.00M	-1.49B	-3.67B
Financing Cash Flow	107.00M	-496.00M	-848.00M	500.00M	-2.35B

Koninklijke Philips N.V. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:PHIA, the sentiment is Positive. The current price of 26.32 is above the 20-day moving average (MA) of 25.39, above the 50-day MA of 24.54, and above the 200-day MA of 23.13, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 59.32 is Neutral, neither overbought nor oversold. The STOCH value of 51.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:PHIA.

Koninklijke Philips N.V. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHIA	64 Neutral	€25.29B	28.16	-7.02%	3.73%	-0.81%	-54.90%
PHARM	62 Neutral	€1.01B	-7,050.00	0.44%	―	24.19%	99.16%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GLPG	48 Neutral	€1.91B	-4.36	-16.72%	―	―	―