Philips has recorded its first full-year net profit since 2021. The healthcare technology company maintained sales despite higher US import duties, while profitability improved through cost savings. Spending on the large-scale recall of sleep apnoea devices and related legal cases was also lower than in previous years.
In 2025, Philips reported revenue of €17.8 billion. After adjusting for currency effects and the sale of business units, this represented growth of 3 percent. Sales of personal care products, including shavers, saw a particular rise. Net profit totalled €897 million, compared with a €698 million loss the year before.
The company also announced new financial targets. Philips aims to achieve €1.5 billion in savings by 2028 and is targeting annual revenue growth of around 5 percent.
AI Applications
Over the past three years, Philips has reduced costs partly by cutting thousands of jobs. In the coming years, it hopes to work faster and more efficiently, supported in part by artificial intelligence. “You can already see this in our IT department, for example. A lot of programming is already done with AI, and it’s a real help there,” said Chief Executive Officer Roy Jakobs.
Philips is integrating more AI applications into its products. According to Jakobs, these tools support various types of medical scans, including image creation, patient positioning, and diagnosis. Commenting on the annual results, he also highlighted the large volumes of data in healthcare that can be used in AI development.
The company sees North America as its key growth market. At the same time, Jakobs warned that US import tariffs will cost several hundred million euros in the coming year. “For the first time, they will have an impact all year long. But we have measures in place to mitigate them and expect to increase profit margins,” he said.
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