Koninklijke Philips N.V. (PHG)
NYSE:PHG
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Koninklijke Philips
(NYSE:PHG)
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Rating:64Neutral
Price Target:
$29.00
▼(-2.68% Downside)
Action:ReiteratedDate: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
Profitability recovery & margin expansion
Philips returned to sustained profitability in 2025 with meaningful margin expansion driven by mix, productivity and innovation. Management targets 2026 adjusted EBITDA margin ~12.5%–13% and mid‑teens by 2028, indicating a durable structural push to embed higher margins via cost programs and premium offerings.
Negative Factors
Tariff headwinds
Material tariffs are a structural margin headwind for 2026, potentially eroding operating profitability and free cash flow unless offset by pricing, localization or productivity. Even with mitigation levers, a recurring EUR 250–300m drag constrains near‑term margin progression and requires sustained execution to neutralize.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability recovery & margin expansion
Philips returned to sustained profitability in 2025 with meaningful margin expansion driven by mix, productivity and innovation. Management targets 2026 adjusted EBITDA margin ~12.5%–13% and mid‑teens by 2028, indicating a durable structural push to embed higher margins via cost programs and premium offerings.
Read all positive factors
Koninklijke Philips (PHG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.53B
Dividend Yield3.3%
Average Volume (3M)912.03K
Price to Earnings (P/E)24.8
Beta (1Y)0.90
Revenue Growth-0.76%
EPS Growth-55.03%
CountryUS
Employees67,247
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.71
Shares Outstanding962,920,100
10 Day Avg. Volume944,742
30 Day Avg. Volume912,029
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 Cap1.06
Enterprise Value/Revenue1.57
Enterprise Value/Gross Profit3.48
Enterprise Value/Ebitda10.66
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.78
Revenue Forecast (FY)$20.83B
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:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call conveys a broadly positive operational and financial performance: strong Q4 order intake and sales acceleration, substantial margin expansion, robust Personal Health and Connected Care momentum, significant productivity delivered and an active innovation pipeline. These positives are balanced by tangible near‑term headwinds — notably tariffs (annualized impact in 2026), ongoing Respironics‑related legal and regulatory matters, China tender dynamics, and some D&T margin pressure and Q1 phasing risk. Management has mitigations in place (productivity programs, pricing, localization) and a clear guide for 2026 (3%–4.5% sales growth; 12.5%–13% EBITDA margin), which supports confidence in execution despite the known risks.Positive Updates
Strong Q4 Orders and Sales Momentum
Order intake up 7% in Q4 and 6% for full year; comparable sales growth accelerated to 7% in Q4 (full year 2.3% in line with outlook); order book grew 5% year‑on‑year, providing stronger visibility into 2026.
Negative Updates
Tariffs Creating Ongoing Headwinds
Incremental tariffs materially impacted margins; full impact in 2025 was somewhat better than the EUR 150–200m expectation after mitigation, but 2026 annualized tariffs are expected to be a EUR 250–300m net headwind (assuming current levels), pressuring margins especially early in 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Q4 Orders and Sales Momentum
Order intake up 7% in Q4 and 6% for full year; comparable sales growth accelerated to 7% in Q4 (full year 2.3% in line with outlook); order book grew 5% year‑on‑year, providing stronger visibility into 2026.
Read all positive updates
Company Guidance
Philips guided 2026 comparable sales growth of 3.0%–4.5% with a 2026 adjusted EBITDA margin target of 12.5%–13.0%; management said all four quarters should fall within that sales range with Q1 at the lower end and a slight Q1 margin decline expected. Known tariffs are expected to be fully annualized in 2026 with a net headwind of EUR 250–300 million (after mitigations); adjusting items are forecast at ~200 basis points, of which restructuring is ~80 bps and other charges ~120 bps (including Respironics-related items). The company expects EUR 1.3–1.5 billion of free cash flow in 2026, is launching an additional EUR 1.5 billion productivity program for 2026–2028 (having delivered ~EUR 2.5 billion since 2023 and EUR 815 million in 2025), and said the guide already assumes continued operational improvements, productivity and partial tariff mitigation (2025 results: adjusted EBITDA margin 12.3% FY / 15.1% Q4).Koninklijke Philips Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
53
Neutral
| 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 | 2.64B | 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
Positive
29.80
Price Trends
29.19
Negative
28.56
Negative
27.72
Positive
Market Momentum
-0.55
Negative
50.78
Neutral
64.86
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 27.37, above the 50-day MA of 29.19, and above the 200-day MA of 27.72, indicating a neutral trend. The MACD of -0.55 indicates Negative momentum. The RSI at 50.78 is Neutral, neither overbought nor oversold. The STOCH value of 64.86 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $25.32B | 30.97 | 32.44% | ― | 14.21% | 5.66% | |
68 Neutral | $92.98B | 48.91 | 12.53% | ― | 21.62% | 54.80% | |
66 Neutral | $127.08B | 41.38 | 15.04% | 0.95% | 10.95% | -18.32% | |
64 Neutral | $26.53B | 24.78 | 8.21% | 3.30% | -0.76% | -55.03% | |
62 Neutral | $180.37B | 33.55 | 12.89% | 1.88% | 6.37% | 142.39% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
43 Neutral | $1.00M | -9.36 | -476.74% | ― | -5.19% | -0.81% |
* Healthcare Sector Average
PHG
Koninklijke Philips
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Koninklijke Philips Corporate Events
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.