Upside case
Bull case
$12-56.4%
The bull case prices PHG at 7x on FY1 earnings, assuming continued execution and no meaningful deceleration in the core business.
Analysis OverviewHoldUpdated Jun 18, 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
$6 – $12
Model bear to bull value window
Coverage
22
Published analyst ratings
Valuation Context
17.1x
Forward P/E · Market cap $25.5B
PHG price targets
Three scenarios for where PHG stock could go
Current
~$27
Confidence
45 / 100
Updated
Jun 18, 2026
Where we are now
Current · $27
Bear
$6
Base
$9
Bull
$12
Market caseClosest to today
Base case
$9-66.9%
At 6x 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
$6-79.2%
If investor confidence fades or macro conditions deteriorate, a 14x multiple contraction could push PHG down roughly 79% from where it trades now.
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
$25.5B
Revenue TTM
$17.7B
Net Income TTM
$972M
Net Margin
5.5%
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
+27.9%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 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
Q2 2026
EPS
$0.27/$0.24
Revenue
$4.6B/$4.5B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| 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% |
| Q2 2026 | $0.27/$0.24 | +12.5% | $4.6B/$4.5B | +2.2% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$18.0B
+1.6% YoY
FY2
$18.7B
+4.3% YoY
EPS Outlook
FY1
$0.64
-36.0% YoY
FY2
$0.36
-43.8% YoY
Trailing FCF (TTM)$1.9B
FCF Margin: 10.8%
Next Earnings
July 28, 2026
Expected EPS
$0.41
Expected Revenue
$5.0B
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 2025
Total disclosed revenue $17.8B
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
40.0%
-1.3% YoY
Tap, hover, or focus a slice to inspect segment detail.
UNITED STATES is the largest reported region at 40.0%, down 1.3% YoY.
PHG Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Slightly cheap versus peers
Fair value est. $30 — implies +13.0% from today's price.
Upside to Fair Value
13.0%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
PHG
25.0x
vs
S&P 500
24.4x
In line with benchmark
vs Healthcare Trailing P/E
PHG
25.0x
vs
Healthcare
22.1x
+13% premium
vs PHG 5Y Avg P/E
Today
25.0x
vs
5Y Average
41.2x
39% discount
Forward PE
17.1x
S&P 500
18.8x
-9%
Healthcare
18.3x
-6%
5Y Avg
—
—
Trailing PE
25.0x
S&P 500
24.4x
+2%
Healthcare
22.1x
+13%
5Y Avg
41.2x
-39%
PEG Ratio
—
S&P 500
1.66x
—
Healthcare
1.59x
—
5Y Avg
—
—
EV/EBITDA
10.8x
S&P 500
15.2x
-29%
Healthcare
14.2x
-24%
5Y Avg
17.5x
-38%
Price/FCF
24.8x
S&P 500
20.7x
+20%
Healthcare
18.5x
+34%
5Y Avg
20.0x
+24%
Price/Sales
1.2x
S&P 500
3.1x
-60%
Healthcare
2.6x
-53%
5Y Avg
1.3x
-6%
Dividend Yield
1.46%
S&P 500
1.91%
-23%
Healthcare
1.50%
-2%
5Y Avg
1.21%
+21%
| Metric | PHG | S&P 500 | Healthcare | 5Y Avg PHG |
|---|---|---|---|---|
| Forward PE | 17.1x | 18.8x | 18.3x | — |
| Trailing PE | 25.0x | 24.4x | 22.1x+13% | 41.2x-39% |
| PEG Ratio | — | 1.66x | 1.59x | — |
| EV/EBITDA | 10.8x | 15.2x-29% | 14.2x-24% | 17.5x-38% |
| Price/FCF | 24.8x | 20.7x+20% | 18.5x+34% | 20.0x+24% |
| Price/Sales | 1.2x | 3.1x-60% | 2.6x-53% | 1.3x |
| Dividend Yield | 1.46% | 1.91% | 1.50% | 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
Strong
PHG generates $1.9B in free cash flow at a 10.8% margin — returns 1.5% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$17.7B
Revenue Growth
TTM vs prior year
-1.5%
Gross Margin
Gross profit as a share of revenue
45.2%
Operating Margin
Operating income divided by revenue
8.4%
Net Margin
Net income divided by revenue
5.5%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$1.00
Free Cash Flow (TTM)
Cash generation after capex
$1.9B
FCF Margin
FCF as share of revenue — the primary cash quality signal
10.8%
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
3.6%
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
2.8× FCF
~2.8 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
9.0%
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
952M
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 June 18, 2026
High Risk
Margin Pressure
Philips faces €250 million to €300 million in net tariff costs, potentially impacting its 2026 adjusted EBITA margin target of 13.0%.
High Risk
CEO Warning
The CEO's caution about 2026 growth targets led to a stock price drop, indicating market sensitivity to execution risks.
Medium
Geopolitical Risks
Forecasts incorporate geopolitical factors, which could disrupt Philips' global operations and supply chain.
Medium
Dividend Uncertainty
Future dividend rights depend on volatile share price performance, creating uncertainty for income-focused investors.
Lower
Technical Analysis Risk
Stock predictions rely on technical analysis, which may not fully capture fundamental business risks.
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 June 18, 2026
Operational efficiency focus
Philips is viewed positively due to its focus on operational efficiency and profitability improvement, which is expected to drive shareholder value.
Margin recovery potential
The company is undergoing operational simplification and margin recovery, which could enhance its financial performance in the medtech landscape.
Attractive valuation metrics
Philips has a forward P/E ratio of 14.90, suggesting potential undervaluation compared to its trailing P/E of 151.71, indicating improved earnings expectations.
Strong shareholder returns
Philips delivered a 19% total shareholder return in 2024, reflecting strong performance and investor confidence.
Strategic health tech focus
The company has successfully transitioned from lighting and consumer electronics to a focused health technology organization, positioning it for growth in a high-demand sector.
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
$26.78
52W Range Position
42%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$21.95
+22.0% from the low
52-Week High
$33.44
-19.9% from the high
1 Month
+2.80%
3 Month
-2.16%
YTD
-1.1%
1 Year
+21.4%
3Y CAGR
+10.8%
5Y CAGR
-10.8%
10Y CAGR
+1.4%
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
17.1x
vs 13.5x median
+27% above peer median
Revenue Growth
+1.6%
vs +9.7% median
-84% below peer median
Net Margin
5.5%
vs 12.9% median
-58% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
PHG PHG Koninklijke Philips N.V. | $25.5B | 17.1x | +1.6% | 5.5% | Hold | — |
SYK SYK Stryker Corporation | $117.9B | 20.5x | +10.1% | 12.9% | Buy | +25.9% |
BSX BSX Boston Scientific Corporation | $67.3B | 13.5x | +9.7% | 14.4% | Buy | +83.0% |
EW EW Edwards Lifesciences Corporation | $50.4B | 29.0x | +9.8% | 17.6% | Buy | +10.5% |
BAX BAX Baxter International Inc. | $10.3B | 10.4x | +2.3% | -9.7% | Hold | +4.1% |
ZBH ZBH Zimmer Biomet Holdings, Inc. | $17.2B | 10.4x | +4.2% | 9.1% | Hold | +9.5% |
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 1.46% dividend.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
1.5%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
1.46%
Payout Ratio
36.6%
How PHG Splits Its Return
Div 1.46%
Dividend 1.46%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
Annual
1 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
952M
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.99 | — | — | — |
| 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. The bear case scenario is $6 and the bull case is $12.
02Is Koninklijke Philips N.V. (PHG) stock overvalued in 2026?
PHG trades at 17.1x 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 slightly cheap versus peers. 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) Margin Pressure — Philips faces €250 million to €300 million in net tariff costs, potentially impacting its 2026 adjusted EBITA margin target of 13. (2) CEO Warning — The CEO's caution about 2026 growth targets led to a stock price drop, indicating market sensitivity to execution risks. (3) Geopolitical Risks — Forecasts incorporate geopolitical factors, which could disrupt Philips' global operations and supply chain. 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 $18.0B (+1.6% year-over-year) and EPS of $0.64 (-36.0% year-over-year) for the upcoming fiscal year. The following year, analysts project $18.7B 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 2026-07-28. Consensus expects EPS of $0.41 and revenue of $5.0B. 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 $1.9B in free cash flow over the trailing twelve months — a free cash flow margin of 10.8%. PHG returns capital to shareholders through dividends (1.5% yield) and share repurchases ($0 TTM).