AMSTERDAM, Feb 10, 2026, 16:10 CET — Regular session
- Philips surged in Amsterdam, lifted by its latest results and a stronger margin forecast.
- The group is targeting an adjusted EBITA margin between 12.5% and 13.0% for 2026, with free cash flow forecast at 1.3 to 1.5 billion euros.
- Mid-single-digit sales growth and mid-teens margins are back in the spotlight, as the company lays out fresh 2026-2028 targets.
Shares in Koninklijke Philips N.V. surged Tuesday, as the Dutch health tech firm mapped out a profit-margin boost for 2026 and rolled out fresh targets running to 2028, though it flagged a more muted sales growth outlook.
The shift in Philips shares stands out—margin recovery and cash flow have been the company’s main pitches to investors still sizing up how lasting the turnaround might be. Revenue growth remains exposed to swings in hospital spending, and the burden from trade policy costs isn’t getting any lighter.
Management, meanwhile, is working to steer attention to its long-range strategy. The market’s response Tuesday? Shares rallied on signals of more predictable execution and a drop in unexpected twists.
Philips jumped 11.5% to 27.50 euros by 16:10 CET, reaching both its peak of 27.50 and dipping to 26.04 during the session. Monday’s close stood at 24.67 euros. 1
Philips is targeting comparable sales growth in the 3% to 4.5% range for 2026. That measure ignores currency effects and shifts to the company’s structure. For adjusted EBITA margin—essentially operating profit before interest, taxes, amortization, and one-offs—the forecast lands between 12.5% and 13.0%. Free cash flow? Management projects between 1.3 and 1.5 billion euros, representing cash left after investments. The company also put forward a proposed 2025 dividend of 0.85 euro per share and said it has now completed its three-year, 2.5 billion-euro productivity plan. 2
Philips surprised investors with a margin outlook that topped what many had penciled in—a relief after months of hand-wringing over tariffs and sluggish Chinese demand. “Confirmation that Philips moves into right direction,” noted analysts at Kepler Cheuvreux. J.P. Morgan echoed the upbeat take, calling the margin guidance higher than consensus. CEO Roy Jakobs, highlighting the company’s edge in healthcare data, said, “We don’t need to acquire data. We work together with customers on data.” 3
Philips disclosed in a filing that its supervisory board plans to seek shareholder approval to re-appoint Jakobs as CEO at the annual general meeting scheduled for May 8, 2026. Feike Sijbesma, supervisory board chairman, credited Jakobs with “clear leadership” and “strong execution” as Philips advanced its productivity plan and dealt with the aftermath of the Respironics recall. 4
Still, the path ahead remains tight. Philips’ 2026 guidance factors in “currently known tariffs” but leaves out the ongoing Respironics probes, such as the U.S. Department of Justice investigation. Any movement on those fronts — or if weak demand from Chinese hospitals drags on — could weigh on margins and cash flow.
Philips, a player in hospital equipment, monitoring tech, and consumer health, finds itself up against some of the heavier hitters in imaging and med-tech. The takeaway for the sector? Investors are shelling out for hard evidence that margins can climb—even when growth wobbles.
Focus shifts to Philips’ Capital Markets Day, where management is set to outline its path to the 2026-2028 targets and the anticipated costs involved. The event continues through 16:00 GMT on Tuesday. 5
