Royal Philips reported solid second-quarter 2026 results, supported by growth across all business segments and continued investment in AI-enabled healthcare technologies. While financial performance reflected the impact of a one-off US tariff refund, the quarter was also marked by the introduction of several new diagnostic and imaging innovations, expanded cloud-based collaborations and large-scale healthcare modernization projects. Together, these developments underline Philips’ strategy of combining digital platforms, artificial intelligence and connected care to improve clinical workflows and expand access to healthcare.
Group sales reached EUR 4.4 billion, representing 4% comparable sales growth compared with the same period last year. Comparable order intake declined by 1%, largely due to the timing of several large Connected Care contracts that shifted into the third quarter. Europe delivered strong double-digit order growth, while demand for Philips' healthcare innovations remained stable, according to the company.
AI and imaging drive innovation
The strongest technology announcements during the quarter centred on Philips' imaging and AI portfolio. The company introduced SmartIQ for its Azurion image-guided therapy platform, a new technology designed to address the balance between image quality and radiation exposure during coronary interventions. According to Philips, SmartIQ enables an ultra-low-dose imaging protocol that uses more than 50% less X-ray radiation than current low-dose settings, supported by published clinical evidence.
Philips also unveiled the Titanion MR, a next-generation 3.0 Tesla MRI system featuring ultra-high-gradient technology, alongside what it describes as the first 4D MRI solution designed specifically for radiation therapy planning. The new imaging platform aims to improve visualization of moving tumours, enabling more precise treatment planning and supporting clinical decision-making in radiation oncology. In addition, Philips announced that several AI-powered healthcare innovations received new regulatory clearances during the quarter, although the company did not specify which products obtained approval.
Expanding connected and home-based care
Beyond product launches, Philips continued to expand collaborations aimed at strengthening digital healthcare infrastructure. In Poland, the company partnered with healthcare providers to modernize more than 200 hospitals through over 300 healthcare technology projects under the country's National Recovery and Resilience Plan. The initiative includes the deployment of imaging systems, image-guided therapy solutions and patient monitoring technologies intended to improve access to healthcare across the country.
Philips also secured a contract with Region Stockholm, following a tender led by Karolinska University Hospital, to support a hospital-at-home programme capable of serving up to 15,000 patients annually. The programme combines remote patient monitoring with AI-supported clinical services to enable more care to be delivered outside the traditional hospital setting.
The company further expanded its enterprise imaging strategy by signing long-term cloud-based imaging partnerships with a major US health system and Imperial College Healthcare NHS Trust in the United Kingdom. These collaborations aim to connect care teams across organisations, streamline diagnostic workflows and improve access to medical imaging data through cloud-based platforms.
Financial performance supported by productivity
Philips reported income from operations of EUR 609 million, benefiting from a EUR 186 million US tariff refund. The company's Adjusted EBITA margin increased to 16.4%, although much of that improvement reflected the tariff reimbursement. Excluding this one-off effect, profitability continued to face pressure from inflation, higher tariffs and product mix, partly offset by productivity measures and higher sales.
Comparable sales increased by 2% in both the Diagnosis & Treatment and Connected Care businesses, while Personal Health recorded 8% comparable sales growth. During the quarter Philips realised EUR 132 million in productivity savings and stated that its multi-year productivity programme remains on track to deliver EUR 1.5 billion in cumulative savings between 2026 and 2028.
Outlook unchanged despite uncertain environment
Despite ongoing macroeconomic uncertainty and higher trade costs, Philips maintained its outlook for 3% to 4.5% comparable sales growth for full-year 2026. The company increased its guidance for Adjusted EBITA margin to 13.5%–14.0% and raised expected free cash flow to EUR 1.5–1.7 billion, both reflecting the impact of the US tariff refund.
Chief Executive Officer Roy Jakobs said Philips continues to focus on differentiated platform innovations, commercial execution and strengthening supply chain resilience while keeping quality central to its operations. Judging by the second-quarter innovation pipeline, AI-enabled imaging, cloud-connected diagnostics and home-based care remain central pillars of the company's strategy as healthcare providers continue to invest in more digital and data-driven models of care.
References
Financial results Q2 (pdf)
