Dutch healthcare technology company Philips has reported second-quarter profit margins above market expectations, helped by US tariff refunds, and lifted its 2026 outlook to include benefits from the repaid levies.
Philips, which makes over 40% of its sales in North America, was among European companies hardest hit by US import tariffs, and it is one of the first to flag refunds, potentially ushering in a wave of rebates.
Philips said it now expects a full-year adjusted earnings before interest, taxes and amortisation (EBITA) margin of 13.5%-14%, up from 12.5%-13% previously, including a US tariff refund benefit of about 1%.
It also forecast free cash flow of €1.5-1.7 billion, up from €1.3-1.5 billion in a previous forecast.
Its adjusted EBITA margin grew to 16.4% in the second quarter, compared with analysts’ average forecast of 12.1%. That includes a U.S. tariff refund benefit of 4.2%.
“We largely completed the US tariff refund process during the quarter and continue to actively manage the broader macro environment, including inflation,” Philips CEO Roy Jakobs said in a statement.
Sales grew 4% to €4.4 billion on a comparable basis. Analysts had expected them to grow 3.8% to €4.26 billion on average, in a poll provided by Philips.
