Koninklijke Philips (PHG) AI Stock Analysis

• Market Cap: $29.74B
• Dividend Yield: 3.3%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 29.5
• Beta (1Y): 0.82
• Revenue Growth: -0.76%
• EPS Growth: -55.03%
• Country: US
• Employees: 67,247
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.71
• Shares Outstanding: 962,920,100
• 10 Day Avg. Volume: 1,555,772
• 30 Day Avg. Volume: 1,047,052
• PEG Ratio: -0.11
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 1.24
• P/FCF Ratio: 24.84
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 1.72
• Enterprise Value/Gross Profit: 3.80
• Enterprise Value/Ebitda: 11.77
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $32.00 ▲(7.38% Upside)
• Action: Reiterated Date: 02/12/26
• Date: Action: Reiterated 02/12/26

PHG scores as moderately attractive, led by a clear 2025 profitability recovery and a supportive technical uptrend. The score is capped by multi-year earnings and cash-flow volatility and meaningful 2026 headwinds (tariffs and Respironics-related uncertainty), while the ~3% dividend provides some valuation support despite a negative P/E.

Positive Factors

Innovation & M&A

Philips’ steady rollout of platform innovations (helium-free 3.0T MRI, AI CT, LumiGuide) plus targeted M&A (SpectraWAVE) strengthens its differentiated product portfolio. These moves broaden clinical offerings, deepen addressable markets in imaging and coronary intervention, and support sustainable mix-driven margin expansion and long-term service/software revenue growth.

Productivity & Cost Programs

Large, multi-year productivity delivery materially lowers structural cost base, improving operating leverage. Sustained savings provide durable margin support to offset tariffs and fund R&D and growth initiatives, increasing resilience of adjusted EBITDA margins and enabling reinvestment without sacrificing profitability over the medium term.

Order Momentum & Margin Improvement

Stronger order intake and visible order book growth signal durable demand and revenue visibility heading into 2026. Concurrent margin expansion reflects better mix, productivity and pricing power; together these trends support sustainable operating profitability and make targets for mid‑term margin improvement more credible.

Negative Factors

Respironics Legal & Recall Risk

Active regulatory actions and large settlement payments create enduring legal, compliance and cash‑flow uncertainty. These matters can require ongoing remediation spend, constrain capital allocation, distract management, and risk further liabilities or operational restrictions that could depress profitability and cash generation for multiple quarters or years.

Tariff Headwinds

Material, recurring tariff exposure meaningfully increases costs and pressures gross margins absent full mitigation. Over the medium term tariffs force pricing, localization and supply‑chain changes that can erode competitiveness, require sustained productivity offsets, and cap margin upside during uncertain trade policy environments.

Volatile Cash Generation

Free cash flow has shown sharp swings due to legal settlements, insurance receipts and working‑capital variability. This volatility reduces predictability for reinvestment, debt reduction and dividends, and elevates refinancing or liquidity risk if adverse events recur, limiting financial flexibility until cash conversion stabilizes.

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 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 streams, primarily by selling health technology products and solutions. The key revenue streams include the sale of medical devices, software and services related to healthcare, and consumer health products. The Health Systems segment, which includes imaging systems, ultrasound, and patient monitoring solutions, contributes significantly to the company's earnings. Additionally, Philips has established partnerships with healthcare providers, technology companies, and research institutions, enhancing its product offerings and expanding its market reach. The company's focus on innovation and digital health solutions, such as telehealth and remote patient monitoring, further drives revenue growth as healthcare systems increasingly integrate technology to improve efficiency and patient outcomes.

Koninklijke Philips Financial Statement Overview

Summary

Financials are improving but still volatile: 2025 returned to profitability with better gross and operating margins, and leverage appears manageable. However, results swung from strong profit (2021) to sizable losses (2022–2024), and cash flow has been uneven with a sharp free-cash-flow decline in 2025 versus 2024.

Income Statement

Profitability has improved meaningfully versus the loss-making period in 2022–2024, with 2025 returning to positive earnings (about 5.0% net margin) and stronger operating profitability than 2024. Gross margin also improved to ~45% in 2025 from ~43% in 2024 and ~40% in 2022–2023. However, revenue has been broadly flat across 2020–2024 and only rebounded in 2025, and the last several years show notable volatility (large losses in 2022–2024 versus strong profit in 2021), which lowers overall quality and consistency.

Balance Sheet

Leverage looks manageable for the sector, with debt-to-equity around 0.74 in 2025 (generally ~0.55–0.62 in 2022–2024), suggesting moderate balance-sheet risk. Equity remains substantial, though it has trended down from 2021–2022 levels, indicating some erosion in the capital base over time. Returns on equity have recovered to ~8% in 2025 after being negative in 2022–2024, but the recent history of negative returns highlights that profitability still needs to prove durability.

Cash Flow

Cash generation is positive in recent years, with 2025 producing operating cash flow of ~$1.16B and free cash flow of ~$0.89B, and free cash flow covering roughly three-quarters of net income. That said, cash flow has been volatile (including negative operating and free cash flow in 2022), and 2025 free cash flow declined sharply versus 2024 (negative growth). Operating cash flow relative to revenue also appears modest versus prior years, suggesting working-capital or cash-conversion pressures.

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	2.55B	1.85B	1.04B	115.00M	2.00B
Net Income	895.00M	-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	7.29B	7.34B	6.05B
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	893.00M	1.35B	1.94B	-648.45M	1.46B
Operating Cash Flow	1.16B	1.70B	2.31B	-181.82M	1.93B
Investing Cash Flow	-737.00M	-633.87M	-553.53M	-1.58B	-317.95M
Financing Cash Flow	107.00M	-536.52M	-916.79M	525.49M	-2.77B

Koninklijke Philips Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.80
• 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 PHG, the sentiment is Positive. The current price of 29.8 is below the 20-day moving average (MA) of 30.24, above the 50-day MA of 28.91, and above the 200-day MA of 26.91, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 58.70 is Neutral, neither overbought nor oversold. The STOCH value of 36.47 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYK	72 Outperform	$144.40B	44.93	15.08%	0.95%	10.95%	-18.32%
BSX	71 Outperform	$113.19B	39.05	12.60%	―	21.62%	54.80%
DXCM	71 Outperform	$28.02B	34.53	34.50%	―	14.21%	5.66%
ABT	65 Neutral	$197.00B	30.37	13.03%	1.88%	6.37%	142.39%
PHG	64 Neutral	$29.74B	29.52	―	3.30%	-0.76%	-55.03%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SSKN	46 Neutral	$1.12M	-0.07	-207.19%	―	-5.19%	-0.81%

Koninklijke Philips Corporate Events

Philips Moves to Extend CEO Roy Jakobs’ Mandate as Profitable Growth Strategy Advances

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’s desire for continuity in leadership as the company pursues its next phase of profitable growth in the global health technology market.

The Supervisory Board cited progress since 2022, including addressing the Respironics recall, strengthening a culture of patient safety and quality, simplifying the organization and delivering €2.5 billion in productivity savings. It also highlighted restored growth, higher margins, positive cash generation and a stronger balance sheet, underscoring confidence that Jakobs can sustain operational improvements and long-term value creation for shareholders and other stakeholders.

The most recent analyst rating on (PHG) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Koninklijke Philips stock, see the PHG Stock Forecast page.

Philips Posts Strong Q4 2025, Lifts Margins and Cash Flow as It Sets 2026–2028 Growth Targets

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, accelerating to 7% in the final quarter. Income from operations reached EUR 1,424 million for 2025, while the adjusted EBITA margin expanded by 80 basis points to 12.3% for the year and 160 basis points to 15.1% in Q4, supported by productivity gains that offset higher tariffs and underpinned solid cash generation.

Free cash flow for 2025 came in at EUR 512 million, including a EUR 1,025 million payment related to Respironics recall settlements in the U.S., while Q4 free cash flow surged to EUR 1,200 million, contributing to what management called a robust balance sheet. All main segments grew in the fourth quarter, with Connected Care and Personal Health delivering notable sales and margin improvements and Diagnosis & Treatment stabilizing margins despite tariff pressure, as Philips completed a three-year EUR 2.5 billion productivity program.

Operationally, Philips highlighted strong momentum in innovation and strategic partnerships, including the launch of helium-free 3.0T MR and AI-powered imaging platforms, new enterprise-scale patient monitoring solutions, and the acquisition of SpectraWAVE, signed in December 2025 and closed in January 2026, which broadens its coronary intervention portfolio. New long-term agreements with large U.S. healthcare providers for monitoring and cloud-based imaging IT, along with locally tailored consumer health launches in China, underscore Philips’ push to deepen its presence in key markets and support AI-enabled clinical workflows.

At its Capital Markets Day, Philips set 2026–2028 financial targets, aiming for a mid-single-digit comparable sales CAGR and a mid-teens adjusted EBITA margin by 2028, anchored in segment-specific growth strategies, innovation-led expansion, and continued disciplined execution. The company also proposed a 2025 dividend of EUR 0.85 per share and introduced updated 2030 impact ambitions, signaling to investors a focus on profitable growth, sustained productivity, and integrated sustainability goals after a three-year period of operational strengthening and quality remediation.

The most recent analyst rating on (PHG) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Koninklijke Philips stock, see the PHG Stock Forecast page.