Upside case
Bull case
$97+254.5%
PHG would need investors to value it at roughly 62x earnings — about 45x more generous than today's 18x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated May 1, 2026
Koninklijke Philips N.V. (PHG) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
22
analysts
9 bullish · 0 bearish · 22 covering PHG
Strong Buy
0
Buy
9
Hold
13
Sell
0
Strong Sell
0
Consensus Target
—
— vs today
Scenario Range
— – $97
Model bear to bull value window
Coverage
22
Published analyst ratings
Valuation Context
17.6x
Forward P/E · Market cap $25.9B
PHG price targets
Three scenarios for where PHG stock could go
Current
~$27
Confidence
50 / 100
Updated
May 1, 2026
Where we are now
Current · $27
Base
$18
Bull
$97
Market caseClosest to today
Base case
$18-34.7%
At 11x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
—
The bear case reflects a scenario where earnings shortfalls or multiple compression combine to materially reduce the stock from its current level.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Koninklijke Philips N.V.
PHG · NYSEHealthcareMedical - DevicesDecember year-end
Philips is a global health technology company that develops medical devices, diagnostic equipment, and personal health products. It generates revenue primarily from its Diagnosis & Treatment segment (~45% of sales) — including imaging systems like MRI and CT scanners — along with Connected Care (~30%) and Personal Health (~25%) businesses. The company's competitive advantage lies in its integrated ecosystem of hardware, software, and services that creates switching costs for healthcare providers.
Market Cap
$25.9B
Revenue TTM
$17.8B
Net Income TTM
$895M
Net Margin
5.0%
PHG Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
75%Exceptional
12 quarters tracked
Revenue Beat Rate
50%Exceptional
vs consensus estimates
Avg EPS Surprise
+29.0%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 4 of 4Q2 2025
EPS
$0.27/$0.14
Revenue
$4.6B/$4.6B
Q3 2025
EPS
$0.41/$0.32
Revenue
$5.1B/$4.3B
Q4 2025
EPS
$0.37/$0.37
Revenue
$5.0B/$5.0B
Q1 2026
EPS
$0.70/$0.56
Revenue
$6.1B/$5.9B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $0.27/$0.14 | +92.9% | $4.6B/$4.6B | +1.9% |
| Q3 2025 | $0.41/$0.32 | +29.2% | $5.1B/$4.3B | +18.7% |
| Q4 2025 | $0.37/$0.37 | +0.0% | $5.0B/$5.0B | +0.1% |
| Q1 2026 | $0.70/$0.56 | +23.9% | $6.1B/$5.9B | +3.1% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$17.8B
-0.1% YoY
FY2
$17.9B
+0.3% YoY
EPS Outlook
FY1
$0.84
-9.3% YoY
FY2
$0.71
-15.2% YoY
Trailing FCF (TTM)$755M
FCF Margin: 4.2%
Next Earnings
May 6, 2026
Expected EPS
$0.24
Expected Revenue
$4.5B
PHG beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
PHG Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2024
Total disclosed revenue $18.0B
Product Mix
Latest annual revenue by segment or product family
Segment breakdown not available for this company.
Geographic Mix
Latest annual revenue by reported region
UNITED STATES
40.1%
YoY unavailable
Tap, hover, or focus a slice to inspect segment detail.
UNITED STATES is the largest reported region at 40.1%, with no year-over-year comparison yet.
PHG Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Undervalued
Fair value est. $40 — implies +53.0% from today's price.
Upside to Fair Value
53.0%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
PHG
24.9x
vs
S&P 500
25.2x
In line with benchmark
vs Healthcare Trailing P/E
PHG
24.9x
vs
Healthcare
22.1x
+13% premium
vs PHG 5Y Avg P/E
Today
24.9x
vs
5Y Average
41.2x
39% discount
Forward PE
17.6x
S&P 500
19.1x
-8%
Healthcare
19.0x
-8%
5Y Avg
—
—
Trailing PE
24.9x
S&P 500
25.2x
-1%
Healthcare
22.1x
+13%
5Y Avg
41.2x
-39%
PEG Ratio
—
S&P 500
1.75x
—
Healthcare
1.52x
—
5Y Avg
—
—
EV/EBITDA
10.7x
S&P 500
15.3x
-30%
Healthcare
14.1x
-24%
5Y Avg
17.5x
-39%
Price/FCF
24.7x
S&P 500
21.3x
+16%
Healthcare
18.7x
+33%
5Y Avg
20.0x
+24%
Price/Sales
1.2x
S&P 500
3.1x
-60%
Healthcare
2.8x
-57%
5Y Avg
1.3x
-7%
Dividend Yield
1.47%
S&P 500
1.88%
-22%
Healthcare
1.40%
+5%
5Y Avg
1.21%
+21%
| Metric | PHG | S&P 500 | Healthcare | 5Y Avg PHG |
|---|---|---|---|---|
| Forward PE | 17.6x | 19.1x | 19.0x | — |
| Trailing PE | 24.9x | 25.2x | 22.1x+13% | 41.2x-39% |
| PEG Ratio | — | 1.75x | 1.52x | — |
| EV/EBITDA | 10.7x | 15.3x-30% | 14.1x-24% | 17.5x-39% |
| Price/FCF | 24.7x | 21.3x+16% | 18.7x+33% | 20.0x+24% |
| Price/Sales | 1.2x | 3.1x-60% | 2.8x-57% | 1.3x |
| Dividend Yield | 1.47% | 1.88% | 1.40% | 1.21% |
PHG trades above S&P 500 benchmarks on 1 of 5 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolPHG Financial Health
Verdict
Stressed
PHG returns 1.5% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$17.8B
Revenue Growth
TTM vs prior year
-1.0%
Gross Margin
Gross profit as a share of revenue
45.2%
Operating Margin
Operating income divided by revenue
8.0%
Net Margin
Net income divided by revenue
5.0%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$0.93
Free Cash Flow (TTM)
Cash generation after capex
$755M
FCF Margin
FCF as share of revenue — the primary cash quality signal
4.2%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
6.4%
ROA
Return on assets, trailing twelve months
3.4%
Cash & Equivalents
Liquid assets on the balance sheet
$2.8B
Net Debt
Total debt minus cash
$5.3B
Debt Serviceability
Net debt as a multiple of annual free cash flow
7.0× FCF
~7.0 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
8.2%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
1.5%
Dividend
1.5%
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
$0.34
Payout Ratio
Share of earnings distributed as dividends
36.6%
Shares Outstanding
Current diluted share count
951M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pagePHG Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Product Recalls and Quality Issues
Philips has recalled millions of sleep and respiratory devices due to degrading foam that can release toxic particles. This has resulted in substantial financial provisions, legal costs, and damage to the company's brand reputation, with potential for further recalls if quality control issues persist.
High Risk
Ongoing Litigation and Legal Costs
The fallout from the Respironics recall has led to significant lawsuits, with potential damages estimated in the billions of euros. This ongoing litigation creates uncertainty regarding Philips' financial health and necessitates a discount compared to its peers.
High Risk
Weak Balance Sheet and High Debt
Philips is facing financial challenges due to a weak balance sheet and an increased debt load stemming from past legal issues. This situation limits the company's financial flexibility and could impact its ability to invest in growth opportunities.
Medium
Supply Chain Disruptions
Philips has been affected by an unreliable supply chain, particularly a shortage of electronic components. Although improvements are being made, this remains a vulnerability that could impact production and delivery timelines.
Medium
FDA Scrutiny and Warning Letters
The U.S. FDA has issued warning letters to Philips for multiple violations in its medical device facilities, including quality control and reporting issues. Failure to address these concerns could lead to further regulatory actions and fines.
Medium
Tariffs and Trade Tensions
Tariffs, especially between the U.S. and China, are projected to significantly impact Philips' bottom line, potentially costing hundreds of millions of dollars in 2025. This geopolitical risk could affect pricing and market access.
Lower
Weak Demand in China
Philips is experiencing weak demand in China for both consumer products and health systems, which poses challenges for revenue growth in one of its key markets. This trend could hinder overall performance if it continues.
Lower
Brand Reputation Damage
The product recall issues have significantly damaged Philips' brand reputation, which could affect customer loyalty and sales. Rebuilding trust in the brand will require time and effective communication strategies.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why PHG Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Healthcare Technology Leadership
Philips is a leader in diagnostic imaging and image-guided therapies, with a strong presence in these high-growth sectors. The company is also at the forefront of healthcare AI, which is expected to drive future growth.
Product Innovation and Market Recovery
Philips is poised to be an early market entrant with its helium-free 3.0T MR, which could help it regain market share lost due to supply chain issues. Recent FDA clearances for AI-powered systems also highlight its innovation pipeline.
Margin Expansion and Productivity
The company is implementing productivity initiatives expected to yield significant savings, contributing to margin expansion. A target dividend payout ratio of 40-50% also supports earnings growth.
Litigation Resolution
The resolution of past litigation, particularly the settlement of U.S. respiratory device cases, is seen as a positive catalyst that can improve investor confidence.
Financial Performance Improvement
Recent earnings reports have shown a swing to net income from a prior loss, with sales showing modest growth. The company has also reaffirmed sales growth targets and improved EBITA margins.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
PHG Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$27.23
52W Range Position
46%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$21.95
+24.1% from the low
52-Week High
$33.44
-18.6% from the high
1 Month
+0.11%
3 Month
-7.57%
YTD
+0.6%
1 Year
+13.0%
3Y CAGR
+9.2%
5Y CAGR
-12.6%
10Y CAGR
+1.2%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
PHG vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
17.6x
vs 16.6x median
+6% above peer median
Revenue Growth
-0.1%
vs +9.9% median
-101% below peer median
Net Margin
5.0%
vs 12.9% median
-61% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
PHG PHG Koninklijke Philips N.V. | $25.9B | 17.6x | -0.1% | 5.0% | Hold | — |
SYK SYK Stryker Corporation | $112.0B | 19.5x | +9.9% | 12.9% | Buy | +38.1% |
BSX BSX Boston Scientific Corporation | $83.2B | 16.6x | +12.8% | 14.4% | Buy | +63.1% |
EW EW Edwards Lifesciences Corporation | $48.0B | 27.7x | +9.9% | 17.6% | Buy | +16.0% |
BAX BAX Baxter International Inc. | $8.8B | 8.9x | +2.9% | -9.7% | Hold | +16.3% |
ZBH ZBH Zimmer Biomet Holdings, Inc. | $16.2B | 9.8x | +3.8% | 9.1% | Hold | +18.2% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
PHG Dividend and Capital Return
PHG returns 1.5% total yield, led by a 1.51% dividend.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
1.5%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
1.51%
Payout Ratio
36.6%
How PHG Splits Its Return
Div 1.51%
Dividend 1.51%Buybacks 0.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.34
Growth Streak
Consecutive years of dividend increases
1Y
3Y Div CAGR
0.1%
5Y Div CAGR
3.9%
Ex-Dividend Date
—
Payment Cadence
Semi-Annual
2 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$0
Estimated Shares Retired
0
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
951M
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $1.01 | — | — | — |
| 2025 | $0.97 | +5.7% | 0.0% | 1.3% |
| 2024 | $0.92 | — | 1.9% | 1.9% |
| 2022 | $0.96 | -6.7% | 1.4% | 4.4% |
| 2021 | $1.03 | +29.1% | 6.0% | 7.7% |
FAQ
6 questionsPHG Investor Questions
Common questions answered from live analyst data and company financials.
01Is Koninklijke Philips N.V. (PHG) stock a buy or sell in 2026?
Koninklijke Philips N.V. (PHG) is rated Hold by Wall Street analysts as of 2026. Of 22 analysts covering the stock, 9 rate it Buy or Strong Buy, 13 rate it Hold, and 0 rate it Sell or Strong Sell.
02Is Koninklijke Philips N.V. (PHG) stock overvalued in 2026?
PHG trades at 17.6x times forward earnings. The stock's valuation is broadly in line with the broader market. Based on current multiples versus the peer group, the relative model signals significantly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
03What are the main risks for Koninklijke Philips N.V. (PHG) stock in 2026?
The primary risks for PHG in 2026 are: (1) Product Recalls and Quality Issues — Philips has recalled millions of sleep and respiratory devices due to degrading foam that can release toxic particles. (2) Ongoing Litigation and Legal Costs — The fallout from the Respironics recall has led to significant lawsuits, with potential damages estimated in the billions of euros. (3) Weak Balance Sheet and High Debt — Philips is facing financial challenges due to a weak balance sheet and an increased debt load stemming from past legal issues. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
04What is Koninklijke Philips N.V.'s revenue and earnings forecast?
Analyst consensus estimates PHG will report consensus revenue of $17.8B (-0.1% year-over-year) and EPS of $0.84 (-9.3% year-over-year) for the upcoming fiscal year. The following year, analysts project $17.9B in revenue.
05When does Koninklijke Philips N.V. (PHG) report its next earnings?
Koninklijke Philips N.V. is expected to report its next earnings on approximately 2026-05-06. Consensus expects EPS of $0.24 and revenue of $4.5B. Over recent quarters, PHG has beaten EPS estimates 75% of the time.
06How much free cash flow does Koninklijke Philips N.V. generate?
Koninklijke Philips N.V. (PHG) generated $755M in free cash flow over the trailing twelve months — a free cash flow margin of 4.2%. PHG returns capital to shareholders through dividends (1.5% yield) and share repurchases ($0 TTM).