Philips beats second-quarter profit estimates helped by tariff refunds
Philips beats second-quarter profit estimates helped by tariff refunds
Mon, July 27, 2026 at 8:37 PM UTC
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July 27 (Reuters) - Dutch healthcare technology company Philips reported second-quarter profit margins above market expectations on Monday, helped by U.S. 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 U.S. 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%-14.0%, up from 12.5%-13.0% previously, including a U.S. 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.
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• 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 U.S. 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.
($1 = 0.8797 euros)
(Reporting by Alessandro Parodi and Lucie Barbier in Gdansk, editing by Rosalba O'Brien)
Source: “AOL Money”
