Philips posts strong order growth as margin expansion drives Q1 performance

Philips (NYSE:PHG) delivered a solid opening to 2026, reporting a significant uptick in new orders and improved operational efficiency.

The Amsterdam-based health technology giant saw its comparable order intake grow by 6% during the first quarter, signaling robust demand for its diagnostic and enterprise informatics solutions across global markets.

Group sales reached €3.9 billion for the quarter, reflecting a 4% increase in comparable sales.

This growth was supported by steady execution across the company’s core business segments, as healthcare providers continue to invest in automated workflows and precision diagnostics.

Profitability also showed positive momentum, with income from operations rising to €241 million.

The adjusted EBITA margin expanded by 40 basis points to 9%, driven by productivity measures and a more favorable product mix.

The company’s financial health remained stable during the period, with operating cash flow totaling €188 million and free cash flow reaching €28 million.

Based on the quarterly performance, Philips reiterated its full-year 2026 outlook.

The company expects comparable sales growth to fall between 3% and 4.5% for the year.

Management also remains committed to achieving an adjusted EBITA margin of 12.5% to 13% and generating free cash flow between €1.3 billion and €1.5 billion.