Philips warned that ongoing trade tensions—particularly U.S.-China tariffs—may slash €250–300 million from its 2025 earnings, prompting a cut to its adjusted EBITA margin forecast. The company now expects a margin of 10.8–11.3%, down from 11.8–12.3%, though it reaffirmed its 1–3% comparable sales growth target.
Q1 Performance and Outlook
- Q1 2025 Net Income: €72M (vs. €998M loss in Q1 2024)
- Revenue: €4.097B
- Diagnosis & Treatment sales: down 4% YoY, impacted by double-digit decline in China
- Free cash flow: expected to remain slightly positive after €1.025B Respironics settlements
CEO Roy Jakobs noted efforts to enhance supply chain agility and cut costs to offset macroeconomic pressures, including the ongoing DOJ probe into the CPAP device recall.
Strategic Advances Amid Headwinds
Despite global headwinds, Philips has continued pushing innovation:
- Launched AI-powered SmartSpeed Precise MRI solution
- Expanded EU MDR-certified remote scanning capabilities
- Strengthened AI pathology workflow partnership with Ibex
- Announced a data infrastructure collaboration with Mass General Brigham
With strong U.S. order intake and steady Personal Health growth, Philips remains focused on long-term profitability and patient-focused innovation.
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