Philips reported comparable sales growth of 4% for the second quarter of 2026, with group sales of 4.4 billion euros ($5 billion), driven by growth across all business segments, according to the company.
Income from operations was 609 million euros ($693 million), including a 186 million euro ($211 million) benefit from a U.S. tariff refund. Adjusted EBITA margin increased to 16.4%, which included an effective 4.2% benefit from the tariff refund, the company said. Operating cash flow was 376 million euros ($428 million), with free cash flow of 222 million euros ($252 million).
Within the company’s Diagnosis & Treatment segment, comparable sales increased by 2%, and adjusted EBITA margin rose to 13.9%, including a roughly 4.6% benefit from the tariff refund. Excluding that benefit, adjusted EBITA declined due to cost inflation, higher tariffs, and unfavorable mix effects, partly offset by productivity measures, according to Philips.
Among recent developments, Philips highlighted the launch of SmartIQ for its Azurion image-guided therapy platform, which uses more than 50% less x-ray radiation than current low-dose settings for coronary procedures, the company said. Philips also introduced the Titanion MR, a 3-tesla MRI system, along with a 4D MR system for radiation therapy planning. Separately, the company signed long-term enterprise imaging partnerships with a U.S. health system and Imperial College Healthcare NHS Trust in the U.K.
Philips reiterated its full-year 2026 outlook for comparable sales growth of 3% to 4.5%, while raising its adjusted EBITA margin and free cash flow outlook to reflect the tariff refund.
