Philips Q3 Profit Up as Comparable Sales Rise Despite Slight Revenue Drop

Post by : Bianca Suleiman

Netherlands-based technology group Philips reported an increase in third-quarter net profit even though total revenue edged lower. Net income rose to €184 million from €181 million a year earlier, while basic earnings per share remained at €0.19.

On an adjusted basis the picture was stronger: adjusted earnings per share climbed to €0.36 from €0.32, and adjusted EBITA increased to €531 million from €516 million. The adjusted EBITA margin widened to 12.3 percent, a 50 basis-point improvement driven by sales growth, a favourable product mix and productivity gains, partly offset by higher tariffs.

Total sales fell 2 percent to €4.3 billion, yet Philips reported comparable sales growth of 3.3 percent, with steady performance across its businesses. Comparable order intake rose 8 percent, led by strength in North America.

Looking forward, Philips reiterated its 2025 guidance, targeting adjusted EBITA margins toward the upper range of 11.3–11.8 percent. The company remains on track with its three-year €2.5 billion productivity programme, aiming for €800 million of savings in 2025, and expects full-year comparable sales growth of 1–3 percent, excluding ongoing matters related to Philips Respironics, including the US Department of Justice inquiry.

Overall, the quarter underscores Philips’ ability to manage costs and improve adjusted profitability while navigating softer top-line trends and regulatory headwinds.