Philips (NYSE: PHG) Exceeds EPS Estimates Amidst Revenue Miss in Medical Equipment Sector
Key points
- Philips (NYSE: PHG) surpassed earnings per share (EPS) expectations, reporting $0.46 against an estimate of $0.37.
- Despite a revenue miss, a stronger gross margin and increased sales contributed to the profit beat for the healthcare technology company.
- The company achieved 3% comparable sales growth and an 8% increase in comparable order intake, driven by its Diagnosis & Treatment segment.
Philips (NYSE: PHG) makes medical equipment and personal health products. It reported earnings per share of $0.46, above the $0.37 estimate. Revenue was $4.93 billion, below the $5.01 billion estimate. The results show that Philips earned more per share than expected even though revenue fell short.
Higher sales and a stronger gross margin helped Philips beat quarterly profit estimates, as highlighted by Reuters. Gross margin is the share of sales left after the direct cost of making and selling products. A stronger margin can support profit even when total revenue misses an estimate.
Philips reported 3% comparable sales growth and an 8% increase in comparable order intake, as highlighted by GlobeNewswire. “Comparable” growth adjusts for changes such as currency movements. CEO Roy Jakobs said demand in Diagnosis & Treatment drove orders, while Personal Health and Connected Care led sales growth.
Group sales were €4.4 billion, and income from operations was €165 million. Adjusted EBITA margin rose 70 basis points, or 0.70 percentage points, to 13.0%. Operating cash flow reached €544 million, while free cash flow was €384 million. Philips reiterated its full-year 2026 outlook.
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