Royal Philips reported a solid start to 2026, posting growth in orders, sales and profitability for the first quarter, as the company continued to benefit from strong demand for its AI-enabled health technology solutions.
“We delivered a good start to 2026, with strong order intake growth at 6 per cent, comparable sales growth of 4 per cent and margin expansion of 40 basis points, reflecting disciplined execution against our plan in an uncertain macro-environment,” said Roy Jakobs, CEO of Royal Philips.
The Dutch health technology major posted group sales of €3.9 billion for the quarter, reflecting a 4 per cent increase in comparable sales, while comparable order intake rose 6 per cent. Income from operations increased to €241 million, and adjusted EBITA margin improved by 40 basis points to 9.0 per cent.
Philips generated an operating cash flow of €188 million, with free cash flow of €28 million during the quarter.
Performance was supported by growth across all business segments, led by Personal Health, which recorded 9 per cent comparable sales growth and an adjusted EBITA margin of 15.8 per cent.
Diagnosis & Treatment posted 2 per cent comparable sales growth, with margin improving to 9.8 per cent, while Connected Care reported 3 per cent sales growth despite margin pressure from tariffs and inflation.
Jakobs said the company is advancing its strategy built around focused segment-specific growth, platform-based innovation, and disciplined execution.
During the quarter, Philips secured regulatory approvals for several AI-powered solutions, including SmartHeart for automated cardiac MR imaging planning and DeviceGuide, which provides real-time guidance for complex cardiac procedures on the Azurion platform.
The company also strengthened its CT imaging portfolio and expanded strategic partnerships with major healthcare providers, including WellSpan Health, University Health San Antonio, and AdventHealth.
Philips delivered €126 million in productivity savings during the quarter and said it remains on track to achieve €1.5 billion in savings under its 2026-2028 programme.
The company reiterated its full-year 2026 outlook, forecasting comparable sales growth of 3 per cent-4.5 per cent, adjusted EBITA margin of 12.5 per cent-13.0 per cent, and free cash flow of €1.3-1.5 billion.
