Koninklijke Philips (NYSE:PHG) reported a return to profitability in its fourth quarter, bolstered by a 7% rise in comparable sales and the successful rollout of AI-driven medical imaging systems.
For the quarter ended December 31, 2025, the Amsterdam-based health technology leader posted net income of $459.8 million, or $0.48 per share, a sharp reversal from the $333 million loss recorded in the same period last year.
When adjusted for one-time costs and gains, earnings reached $0.70 per share, surpassing the consensus analyst estimate of $0.62.
Revenue for the period totaled $5.93 billion (€5.1 billion), driven by broad-based demand across all business segments.
The company’s Diagnosis & Treatment business saw 4% growth, while Personal Health surged 14% on the back of strong holiday demand for high-end grooming and oral care products.
A key driver of the quarter’s performance was the margin expansion in Philips' connected care and diagnostic informatics units.
The company's adjusted EBITA margin rose 160 basis points to 15.1%, as productivity gains and a favorable product mix—including the world’s first AI-powered Spectral CT detector—offset the impact of rising global tariffs.