Healthcare technology giant Philips announced Wednesday that its first-quarter financial performance exceeded analyst predictions, driven by increased order volumes from customers in North America and Europe.
The Netherlands-based company, whose product lineup spans from electric toothbrushes to sophisticated medical imaging equipment, recorded revenue growth of 4% on a comparable basis, reaching 3.91 billion euros (equivalent to $4.59 billion) for the quarter that concluded on March 31.
The company achieved adjusted earnings before interest, taxes, and amortization of 353 million euros, representing a 9% margin, which the company attributed to effective cost-control measures.
Financial analysts had projected average sales of 3.88 billion euros, comparable growth of 3.4%, and adjusted EBITA of 325 million euros, based on a company-compiled survey.
Philips maintained its annual projections for comparable sales growth ranging from 3% to 4.5%, an adjusted EBITA margin between 12.5% and 13%, and free cash flow spanning 1.3 to 1.5 billion euros.
The company’s annual outlook factors in the ongoing effects of U.S. import tariffs, which Philips indicated in February would continue impacting operations through 2026, though it does not account for possible tariff refunds.
The U.S. Supreme Court overturned President Donald Trump’s tariffs in February, creating uncertainty about whether companies that previously paid these fees would receive reimbursements.
Trump stated that “other alternatives” remained available for implementing tariffs and declared a 10% global tariff using different legal authority than what was challenged in the court case, describing it as “over and above our normal tariffs already being charged.”
