Koninklijke Philips N.V. (PHG)
NYSE:PHG
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Koninklijke Philips
(NYSE:PHG)
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Rating:62Neutral
Price Target:
$28.00
▼(-6.04% Downside)
Action:Reiterated
Date:05/06/26
PHG scores mid-range: improving financial performance and a constructive earnings outlook with reiterated 2026 guidance are the main supports, helped by reasonable valuation. Offsetting these positives are weak technical momentum (below key moving averages with negative MACD) and lingering concerns around earnings/cash-flow consistency and unresolved legal uncertainty.
Positive Factors
Recurring Services & Installed Base
Philips’ mix of capital equipment plus attached services, software and consumables creates a durable installed‑base flywheel. This generates higher‑margin, repeatable revenue, increases customer switching costs and stabilizes cash flows relative to one‑off equipment cycles, supporting medium‑term margin and revenue visibility.
Negative Factors
Unresolved Legal Risk
Outstanding Respironics‑related proceedings represent a potentially material, unmodeled liability. Their exclusion from guidance creates persistent uncertainty around future earnings and cash flows, complicates capital allocation decisions and may constrain shareholder returns or M&A until the legal exposure is resolved or more clearly quantified.
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Positive Factors
Negative Factors
Recurring Services & Installed Base
Philips’ mix of capital equipment plus attached services, software and consumables creates a durable installed‑base flywheel. This generates higher‑margin, repeatable revenue, increases customer switching costs and stabilizes cash flows relative to one‑off equipment cycles, supporting medium‑term margin and revenue visibility.
Read all positive factors
Koninklijke Philips (PHG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.37B
Dividend Yield3.3%
Average Volume (3M)1.21M
Price to Earnings (P/E)31.9
Beta (1Y)0.90
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees67,247
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.02
Shares Outstanding962,920,100
10 Day Avg. Volume1,475,419
30 Day Avg. Volume1,210,467
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)2.02
Price to Sales (P/S)1.24
P/FCF Ratio24.84
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue1.49
Enterprise Value/Gross Profit3.30
Enterprise Value/Ebitda10.03
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.8
Revenue Forecast (FY)$21.00B
Koninklijke Philips 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 d...
How the Company Makes Money
Philips makes money mainly by selling healthcare technology products and by providing recurring services and software tied to those products. A significant portion of revenue comes from capital equipment sales to hospitals and healthcare providers...
Koninklijke Philips Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
Overall the call presented a constructive tone: Philips reported broad-based order and sales growth, margin expansion, strong productivity delivery, robust innovation and regulatory momentum, and meaningful balance sheet improvement. These positives were balanced against notable headwinds in China (centralized procurement), cost inflation (freight, components, plastics) and near-term margin timing effects from tariffs and inflation. Management reiterated full-year guidance (3%–4.5% comparable sales; 12.5%–13% adjusted EBITDA margin; EUR 1.3–1.5bn free cash flow) and emphasized mitigation actions (productivity, selective pricing, AI-enabled cost savings) while acknowledging geopolitical and legal uncertainties.Positive Updates
Order Intake and Sales Growth
Order intake grew 6% in Q1 with equipment order intake up 6% and continued momentum across businesses. Group comparable sales increased ~3.7%–4% year-on-year (management cited both 3.7% and ~4%), with growth across all segments and regions led by North America and Western Europe.
Negative Updates
China Market Headwinds and Centralized Procurement
Centralized procurement in China increased in Q1, especially impacting ultrasound and CT, leading to lower order conversion, longer decision cycles and more price-focused competition. Management expects China comparable sales to be broadly stable for the year but flagged continued pressure in equipment demand and reduced pricing in affected modalities.
Read all updates
Q1-2026 Updates
Positive
Negative
Order Intake and Sales Growth
Order intake grew 6% in Q1 with equipment order intake up 6% and continued momentum across businesses. Group comparable sales increased ~3.7%–4% year-on-year (management cited both 3.7% and ~4%), with growth across all segments and regions led by North America and Western Europe.
Read all positive updates
Company Guidance
Philips reiterated its full‑year 2026 guidance: comparable sales growth of 3.0–4.5%, adjusted EBITDA margin of 12.5–13.0% and free cash flow of €1.3–1.5 billion. Management said each quarter should be within that sales range, led by North America and the international region, with China comparable sales expected to be stable and segment guidance skewed to the upper end for Connected Care and Personal Health and to the lower end for Diagnosis & Treatment. The company acknowledged near‑term margin pressure from tariffs, freight, electronic components and plastics but pointed to Q1 momentum (order intake +6%, comparable sales +3.7%, adjusted EBITDA margin +40 bps to 9%, adjusted diluted EPS €0.23, free cash flow +€28m, cash €2.6bn, net debt €5.5bn and leverage ~1.8x) and €126m of Q1 productivity on track to €1.5bn over three years as offsets; guidance reflects currently known tariffs (marginally more favorable than February) and excludes potential tariff refunds and Philips Respironics‑related proceedings.Koninklijke Philips Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
53
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.31B | 17.83B | 18.02B | 18.17B | 17.83B | 17.16B |
| Gross Profit | 8.27B | 8.06B | 7.77B | 7.45B | 7.19B | 7.17B |
| EBITDA | 2.73B | 2.64B | 1.85B | 1.04B | 115.00M | 2.00B |
| Net Income | 995.66M | 895.00M | -702.00M | -466.00M | -1.61B | 3.32B |
Balance Sheet | ||||||
| Total Assets | 27.29B | 26.94B | 28.98B | 29.41B | 30.69B | 30.96B |
| Cash, Cash Equivalents and Short-Term Investments | 2.59B | 2.79B | 2.40B | 1.87B | 1.18B | 2.31B |
| Total Debt | 8.11B | 8.09B | 7.49B | 7.29B | 7.34B | 6.05B |
| Total Liabilities | 15.86B | 15.96B | 16.93B | 17.34B | 17.41B | 16.49B |
| Stockholders Equity | 11.40B | 10.96B | 12.01B | 12.03B | 13.25B | 14.44B |
Cash Flow | ||||||
| Free Cash Flow | 1.91B | 893.00M | 1.35B | 1.94B | -648.45M | 1.46B |
| Operating Cash Flow | 2.30B | 1.16B | 1.70B | 2.31B | -181.82M | 1.93B |
| Investing Cash Flow | -991.68M | -737.00M | -633.87M | -553.53M | -1.58B | -317.95M |
| Financing Cash Flow | 132.62M | 107.00M | -536.52M | -916.79M | 525.49M | -2.77B |
Koninklijke Philips Technical Analysis
Positive
29.80
Price Trends
26.54
Positive
27.68
Negative
27.21
Negative
Market Momentum
-0.23
Negative
54.30
Neutral
44.87
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHG, the sentiment is Positive. The current price of 29.8 is above the 20-day moving average (MA) of 25.95, above the 50-day MA of 26.54, and above the 200-day MA of 27.21, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 54.30 is Neutral, neither overbought nor oversold. The STOCH value of 44.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PHG.
Koninklijke Philips Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $27.57B | 30.31 | 33.83% | ― | 16.15% | 76.15% | |
68 Neutral | $84.23B | 17.42 | 14.82% | ― | 17.44% | 74.36% | |
63 Neutral | $123.25B | 42.22 | 15.22% | 0.95% | 8.84% | 16.34% | |
62 Neutral | $25.37B | 31.92 | 8.96% | 3.30% | ― | ― | |
62 Neutral | $153.94B | 41.63 | 12.20% | 1.88% | 6.59% | -53.44% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
42 Neutral | $741.91K | -9.36 | -476.74% | ― | -8.54% | 40.91% |
* Healthcare Sector Average
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Koninklijke Philips Corporate Events
Philips Starts 2026 with Solid Q1 Growth, Margin Expansion and Renewed Outlook
May 6, 2026
Philips reported first-quarter 2026 results on May 6, 2026, delivering a 6% increase in comparable order intake and 4% comparable sales growth to EUR 3.9 billion, with income from operations rising to EUR 241 million and an adjusted EBITA margin o...
Philips Refreshes Supervisory Board and Seeks CEO Re‑Appointment Ahead of May 2026 AGM
Mar 30, 2026
On March 23, 2026, Philips announced changes to its governance structure, proposing the appointment of U.S. MedTech executive John DeFord to its Supervisory Board and the re‑appointment of Paul Stoffels, Herna Verhagen and Sanjay Poonen. Mar...
Philips Sets May 8, 2026 AGM to Vote on Board, CEO Reappointment and Dividend
Mar 30, 2026
Royal Philips has convened its 2026 Annual General Meeting of Shareholders, publishing the agenda and related materials ahead of the session scheduled for May 8, 2026, in Amsterdam. The AGM will vote on the 2025 financial statements, a cash-or-sha...
Royal Philips Files 2025 Annual Report Highlighting Growth, Cash Generation and ESG Progress
Feb 19, 2026
On February 19, 2026, Koninklijke Philips N.V. filed a Form 6-K with the U.S. Securities and Exchange Commission to furnish its 2025 Annual Report and related press release to investors. The report, prepared under IFRS and Dutch market rules, deta...
Philips Moves to Extend CEO Roy Jakobs’ Mandate as Profitable Growth Strategy Advances
Feb 10, 2026
Royal Philips said on February 10, 2026, that it will propose the re-appointment of Roy Jakobs as President and CEO and as a member of the Board of Management at its May 8, 2026 annual general meeting. The move signals the Supervisory Board’...
Philips Posts Strong Q4 2025, Lifts Margins and Cash Flow as It Sets 2026–2028 Growth Targets
Feb 10, 2026
Philips reported its full-year and fourth-quarter 2025 results on February 10, 2026, showing a 6% rise in comparable order intake for the year and 7% in the fourth quarter, with 2025 group sales of EUR 17.8 billion and 2% comparable sales growth, ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.