Philips reported Q3 2025 results with group sales of €4.3 billion, a 3 % increase in comparable sales, and an income from operations of €330 million. Adjusted EBITA rose to €530 million, giving a margin of 12.3 % of sales, and operating cash flow reached €327 million, while free cash flow was €172 million.
Compared with Q3 2024, Philips’ sales were flat on a comparable‑sales basis, and the Adjusted EBITA margin improved from 11.8 % to 12.3 %. The company’s free cash flow grew from €22 million in Q3 2024 to €172 million in Q3 2025, reflecting stronger operating performance and higher productivity savings.
Segment performance was as follows: Diagnosis & Treatment sales grew 1.3 % in comparable terms, with an Adjusted EBITA margin of 11.8 % (down 80 bps from the prior year, largely offset by tariffs). Connected Care sales increased 5.1 % and the margin improved 410 bps to 11.4 %. Personal Health sales rose 10.9 % and the margin increased 60 bps to 17.1 %.
CEO Roy Jakobs highlighted that margin expansion was driven by higher sales, favorable product mix, and €222 million in productivity savings in Q3 2025, bringing the year‑to‑date total to €566 million. He noted that tariffs continue to impact margins, with an estimated net effect of €150‑200 million for the full year, and that the company remains focused on innovation, cost discipline and patient safety amid regulatory scrutiny.
Philips reiterated its full‑year 2025 outlook, expecting the Adjusted EBITA margin to be at the upper end of the previously stated range. The company remains confident in its growth trajectory, with continued momentum in order intake and a focus on delivering new products such as the Lumea IPL, Rembra RT, Areta RT CT scanners and the helium‑free BlueSeal RT MR.
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