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Koninklijke Philips
(NYSE:PHG)
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Rating:58Neutral
Price Target:
$26.00
▼(-0.65% Downside)
Action:Reiterated
Date:07/28/26
The score is driven primarily by an improving but still volatile financial profile (earnings recovery tempered by uneven cash flow) and a constructive earnings call with reiterated guidance and strong order visibility, partially offset by meaningful near-term margin/execution risks. Technicals weigh on the result as the stock trades below all major moving averages. Valuation is supportive mainly through the ~4% dividend yield, but the P/E implies less room for disappointment.
Positive Factors
Record equipment order book
A record equipment order book gives durable revenue visibility for upcoming quarters and feeds follow‑on services, upgrades and consumables. For a capital‑goods medtech company, this reduces near‑term demand risk and supports predictable aftermarket revenue and margin leverage over 2–6 months.
Negative Factors
Earnings & cash‑flow volatility
Historical swings from profit to loss and volatile free cash flow weaken confidence in sustained earnings quality. This makes capital allocation and long‑term planning harder, raises execution risk if demand softens, and implies any margin gains must be repeatedly demonstrated to be durable.
Read all positive and negative factors
Positive Factors
Negative Factors
Record equipment order book
A record equipment order book gives durable revenue visibility for upcoming quarters and feeds follow‑on services, upgrades and consumables. For a capital‑goods medtech company, this reduces near‑term demand risk and supports predictable aftermarket revenue and margin leverage over 2–6 months.
Read all positive factors
Koninklijke Philips (PHG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.66B
Dividend Yield3.76%
Average Volume (3M)913.23K
Price to Earnings (P/E)19.4
Beta (1Y)0.87
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees64,317
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.16
Shares Outstanding982,884,770
10 Day Avg. Volume892,169
30 Day Avg. Volume913,230
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.82
Revenue Forecast (FY)$20.47B
Koninklijke Philips Business Overview & Revenue Model
Company Description
Koninklijke Philips NV is a technology company, which engages in the healthcare, lighting, and consumer well-being markets. It operates through the following segments: Diagnosis and Treatment; Connected Care; Personal Health; and Other. The Diagno...
How the Company Makes Money
Philips makes money mainly by selling health technology products and by providing recurring services and software tied to those products. A large portion of revenue comes from supplying healthcare providers with capital equipment and systems (e.g....
Koninklijke Philips Earnings Call Summary
Earnings Call Date:Jul 27, 2026
(Q2-2026)
| Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and financial tone: key growth metrics (comparable sales ~4%), strong order momentum (rolling 12‑month +5%), record equipment order book, robust Personal Health performance, notable commercial wins and continued productivity delivery supported the narrative. However, meaningful near‑term headwinds remain — elevated cost inflation, China centralized procurement pressure, D&T margin weakness ex‑refund, and timing/phasing of large cloud/platform deals — some of which depress near‑term underlying margins and introduce execution risk for the back‑loaded margin recovery. On balance, the positives (growth, order book, productivity progress, balance‑sheet improvement and reiterated guidance) outweigh the lowlights, but management highlighted areas requiring continued execution.Positive Updates
Comparable Sales Growth
Q2 comparable sales grew ~4% (4.1% reported, adjusted to 4%), with H1 comparable sales growth also ~4%. Company reiterated full-year comparable sales growth outlook of 3.0% to 4.5%.
Negative Updates
Underlying Margin Pressure Excluding Tariff Refund
Excluding the tariff refund, group underlying adjusted EBITA margin declined to 12.2% in Q2 (reported margin 16.4% incl refund). Company noted underlying margin was ~20 basis points below prior year on an ex‑refund basis for the quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
Comparable Sales Growth
Q2 comparable sales grew ~4% (4.1% reported, adjusted to 4%), with H1 comparable sales growth also ~4%. Company reiterated full-year comparable sales growth outlook of 3.0% to 4.5%.
Read all positive updates
Company Guidance
Philips reiterated full‑year guidance for comparable sales growth of 3.0–4.5% and an underlying (ex‑tariff refund) adjusted EBITA margin target of 12.5–13.0% (13.5–14.0% including the Q2 tariff refund); in Q2 comparable sales rose ~4%, adjusted EBITA margin was 16.4% including the refund and 12.2% excluding it, and Q2 free cash flow was EUR 222m. The company now expects reported full‑year free cash flow of EUR 1.5–1.7bn (underlying EUR 1.3–1.5bn excluding the refund), received virtually all of the tariff refund (including ~EUR 25m related to annual incentive accruals), and said Q3 comparable sales should be at the lower end of the full‑year range with Q3 adjusted EBITA margin below prior year while anticipating a meaningful Q4 step‑up into the upper end of the mid‑teens. Orders were resilient (rolling 12‑month intake +5%; Q2 intake -1%) and the equipment order book is at a record level; productivity delivered EUR 132m in Q2 (EUR 258m YTD) toward a EUR 1.5bn three‑year target. Balance‑sheet metrics: cash EUR 1.8bn, net debt EUR 5.7bn, leverage 1.8x (down from 2.2x), and Philips continues to assume high single‑digit cost inflation for 2026.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 | 17.66B | 17.83B | 18.02B | 18.17B | 17.83B | 17.16B |
| Gross Profit | 8.11B | 8.06B | 7.77B | 7.45B | 7.19B | 7.17B |
| EBITDA | 3.05B | 2.64B | 1.85B | 1.04B | 115.00M | 2.00B |
| Net Income | 1.11B | 895.00M | -702.00M | -466.00M | -1.61B | 3.32B |
Balance Sheet | ||||||
| Total Assets | 26.70B | 26.94B | 28.98B | 29.41B | 30.69B | 30.96B |
| Cash, Cash Equivalents and Short-Term Investments | 1.79B | 2.79B | 2.40B | 1.87B | 1.18B | 2.31B |
| Total Debt | 7.46B | 8.09B | 7.49B | 7.29B | 7.34B | 6.05B |
| Total Liabilities | 15.22B | 15.96B | 16.93B | 17.34B | 17.41B | 16.49B |
| Stockholders Equity | 11.45B | 10.96B | 12.01B | 12.03B | 13.25B | 14.44B |
Cash Flow | ||||||
| Free Cash Flow | 1.90B | 893.00M | 1.35B | 1.94B | -648.45M | 1.46B |
| Operating Cash Flow | 2.29B | 1.16B | 1.70B | 2.31B | -181.82M | 1.93B |
| Investing Cash Flow | -785.68M | -737.00M | -633.87M | -553.53M | -1.58B | -317.95M |
| Financing Cash Flow | -1.57B | 107.00M | -536.52M | -916.79M | 525.49M | -2.77B |
Koninklijke Philips Technical Analysis
Negative
26.17
Price Trends
26.64
Negative
26.60
Negative
27.20
Negative
Market Momentum
-0.13
Positive
42.88
Neutral
19.73
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHG, the sentiment is Negative. The current price of 26.17 is below the 20-day moving average (MA) of 26.72, below the 50-day MA of 26.64, and below the 200-day MA of 27.20, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 42.88 is Neutral, neither overbought nor oversold. The STOCH value of 19.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $28.13B | 32.22 | 36.19% | ― | 15.54% | 77.43% | |
72 Outperform | $182.75B | 33.99 | 10.52% | 2.41% | 8.06% | -61.33% | |
72 Outperform | $133.42B | 33.47 | 15.10% | 1.05% | 8.48% | 27.36% | |
66 Neutral | $68.37B | 18.84 | 14.82% | ― | 13.53% | 46.29% | |
58 Neutral | $25.66B | 19.44 | 10.05% | 3.78% | ― | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
41 Neutral | $32.38K | >-0.01 | -360.33% | ― | -8.54% | 40.91% |
* Healthcare Sector Average
PHG
Koninklijke Philips
26.30
0.68
2.67%
ABT
Abbott Laboratories
105.70
-18.71
-15.04%
BSX
Boston Scientific
46.73
-58.68
-55.67%
DXCM
Dexcom
83.45
4.17
5.26%
SSKN
Strata Skin Sciences
0.09
-1.86
-95.38%
SYK
Stryker
325.70
-48.28
-12.91%
Koninklijke Philips Corporate Events
Philips Sets 2025 Dividend Exchange Ratio and Issues Nearly 20 Million New Shares
Jun 2, 2026
On June 2, 2026, Royal Philips announced the exchange ratio for its 2025 dividend, setting one new common share for every 26.9341 existing shares, based on a late-May volume-weighted average price of EUR 22.8640. The stock dividend was structured ...
Philips shareholders back board slate and renew CEO mandate at 2026 AGM
May 8, 2026
Royal Philips (Koninklijke Philips N.V.) is a leading Netherlands-based health technology company focused on improving health and well-being through innovation for consumers and healthcare providers. The group is a major player in diagnostic imagi...
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...
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.