Revenue growth remains negative at -3.1% in 2026Q1, while operating margins continue to fluctuate, peaking at only 10.6% in 2025Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 17.71B | 17.83B | 18.02B | 18.17B | 17.83B | 17.16B | 17.31B | 17.15B | 18.12B | 17.78B | 24.52B | 24.24B | 21.39B | 23.33B | 24.79B | 22.58B | 25.42B | 23.19B | 26.39B | 26.84B | 26.98B | 30.37B | 30.3B | 28.99B | 31.85B | 32.4B | 37.97B | 31.55B | 30.29B | 34.31B | 31.92B |
| Revenue Growth % | -1.52% | -1.04% | -0.81% | 1.92% | 3.91% | -0.91% | 0.97% | -5.38% | 1.92% | -27.48% | 1.12% | 13.34% | -8.31% | -5.89% | 9.78% | -11.17% | 9.62% | -12.11% | -1.68% | -0.52% | -11.18% | 0.25% | 4.52% | -8.99% | -1.69% | -14.67% | 20.33% | 4.17% | -11.71% | 7.48% | 2.02% |
| Cost of Goods Sold | 9.7B | 9.78B | 10.25B | 10.72B | 10.63B | 9.99B | 9.4B | 9.2B | 9.57B | 9.6B | 13.9B | 14.39B | 13.19B | 13.64B | 15.38B | 13.93B | 15.87B | 15.11B | 17.92B | 17.65B | 18.68B | 20.56B | 20.14B | 19.52B | 21.93B | 22.85B | 28.77B | 24.57B | 23.99B | 25.83B | 24.61B |
| COGS % of Revenue | - | 54.82% | 56.87% | 59.01% | 59.65% | 58.22% | 54.3% | 53.65% | 52.8% | 53.99% | 56.71% | 59.35% | 61.64% | 58.47% | 62.04% | 61.7% | 62.45% | 65.16% | 67.91% | 65.78% | 69.25% | 67.7% | 66.48% | 67.36% | 68.84% | 70.55% | 75.78% | 77.89% | 79.19% | 75.29% | 77.12% |
| Gross Profit | 8B | 8.06B | 7.77B | 7.45B | 7.19B | 7.17B | 7.91B | 7.95B | 8.55B | 8.18B | 10.61B | 9.86B | 8.21B | 9.69B | 9.41B | 8.65B | 9.55B | 8.08B | 8.47B | 9.18B | 8.3B | 9.81B | 10.16B | 9.46B | 9.92B | 9.54B | 9.2B | 6.98B | 6.3B | 8.48B | 7.3B |
| Gross Margin % | 45.2% | 45.18% | 43.13% | 40.99% | 40.35% | 41.78% | 45.7% | 46.35% | 47.2% | 46.01% | 43.29% | 40.65% | 38.36% | 41.53% | 37.96% | 38.3% | 37.55% | 34.84% | 32.09% | 34.22% | 30.75% | 32.3% | 33.52% | 32.64% | 31.16% | 29.45% | 24.22% | 22.11% | 20.81% | 24.71% | 22.88% |
| Gross Profit Growth % | - | 3.67% | 4.36% | 3.53% | 0.36% | -9.4% | -0.45% | -7.07% | 4.56% | -22.92% | 7.67% | 20.11% | -15.3% | 2.97% | 8.81% | -9.42% | 18.16% | -4.58% | -7.8% | 10.71% | -15.44% | -3.41% | 7.33% | -4.64% | 4% | 3.77% | 31.78% | 10.72% | -25.67% | 16.08% | -22.87% |
| Operating Expenses | 6.52B | 6.63B | 7.24B | 7.56B | 8.72B | 6.62B | 6.65B | 6.58B | 6.83B | 6.65B | 8.73B | 8.86B | 7.72B | 7.67B | 8.38B | 7.56B | 7.48B | 7.46B | 8.11B | 7.33B | 7.11B | 8.03B | 8.26B | 8.57B | 9.01B | 9.45B | 4.74B | 5.18B | 5.29B | 6.21B | 6.13B |
| OpEx % of Revenue | - | 37.2% | 40.2% | 41.63% | 48.93% | 38.56% | 38.4% | 38.39% | 37.72% | 37.42% | 35.6% | 36.56% | 36.08% | 32.87% | 33.8% | 33.49% | 29.43% | 32.19% | 30.74% | 27.31% | 26.37% | 26.43% | 27.27% | 29.56% | 28.28% | 29.17% | 12.5% | 16.41% | 17.48% | 18.09% | 19.22% |
| Selling, General & Admin | 4.9B | 4.97B | 5.07B | 5.13B | 5.29B | 4.86B | 4.55B | 4.56B | 5.13B | 4.97B | 6.73B | 7.02B | 5.87B | 6.02B | 6.27B | 6B | 5.98B | 5.89B | 6.51B | 5.84B | 5.68B | 5.93B | 5.85B | 6.06B | 6.43B | 6.27B | 6.28B | 5.57B | 5.48B | 6.34B | 6.29B |
| SG&A % of Revenue | - | 27.87% | 28.12% | 28.25% | 29.69% | 28.31% | 26.29% | 26.59% | 28.32% | 27.98% | 27.46% | 28.97% | 27.45% | 25.82% | 25.28% | 26.58% | 23.53% | 25.41% | 24.67% | 21.77% | 21.05% | 19.52% | 19.3% | 20.89% | 20.18% | 19.35% | 16.53% | 17.64% | 18.1% | 18.47% | 19.69% |
| Research & Development | 1.64B | 1.7B | 1.75B | 1.89B | 2.09B | 1.81B | 1.91B | 1.79B | 1.76B | 1.76B | 2.02B | 1.93B | 1.64B | 1.73B | 1.81B | 1.61B | 1.58B | 1.63B | 1.78B | 1.63B | 1.67B | 2.55B | 2.53B | 2.61B | 3.05B | 3.32B | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 9.53% | 9.69% | 10.4% | 11.73% | 10.53% | 11.06% | 10.44% | 9.71% | 9.92% | 8.24% | 7.95% | 7.64% | 7.43% | 7.3% | 7.13% | 6.2% | 7.03% | 6.73% | 6.08% | 6.18% | 8.4% | 8.36% | 9.01% | 9.56% | 10.24% | - | - | - | - | - |
| Other Operating Expenses | -1000K | -36M | 429M | 541M | 1.34B | -48M | 183M | 232M | 9M | 21M | 0 | 0 | 211M | -32M | 326M | -50M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -466M | -137.12M | -1.53B | -388.57M | -189.29M | -130M | -151.86M |
| Operating Income | 1.48B | 1.42B | 529M | -115M | -1.53B | 553M | 1.26B | 1.37B | 1.72B | 1.52B | 1.88B | 992M | 486M | 1.99B | 1.03B | -269M | 2.06B | 614M | 54M | 1.85B | 1.18B | 1.78B | 1.61B | 487.53M | 420.26M | -1.37B | 4.29B | 1.76B | 681.28M | 2.23B | 835.61M |
| Operating Margin % | 8.37% | 7.98% | 2.94% | -0.63% | -8.58% | 3.22% | 7.3% | 7.97% | 9.49% | 8.53% | 7.68% | 4.09% | 2.27% | 8.53% | 4.16% | -1.19% | 8.12% | 2.65% | 0.2% | 6.91% | 4.38% | 5.85% | 5.3% | 1.68% | 1.32% | -4.24% | 11.31% | 5.57% | 2.25% | 6.49% | 2.62% |
| Operating Income Growth % | - | 169.19% | 560% | 92.48% | -376.49% | -56.25% | -7.47% | -20.54% | 13.32% | -19.39% | 89.72% | 104.12% | -75.59% | 93.3% | 482.9% | -113.03% | 236.32% | 1037.04% | -97.09% | 56.8% | -33.45% | 10.67% | 229.4% | 16.01% | 130.6% | -131.99% | 144.47% | 157.76% | -69.39% | 166.33% | -51.21% |
| EBITDA | 2.6B | 2.55B | 1.92B | 1.15B | 73M | 1.88B | 2.33B | 2.27B | 2.81B | 2.54B | 3.15B | 2.27B | 1.67B | 3.34B | 2.46B | 1.19B | 3.49B | 2.08B | 1.24B | 2.71B | 2.02B | 3.28B | 3.9B | 2.5B | 2.61B | 1.43B | 6.62B | 3.61B | 2.56B | 3.9B | 2.5B |
| EBITDA Margin % | 14.68% | 14.29% | 10.64% | 6.31% | 0.41% | 10.93% | 13.46% | 13.24% | 15.5% | 14.3% | 12.84% | 9.38% | 7.82% | 14.32% | 9.94% | 5.26% | 13.72% | 8.98% | 4.71% | 10.09% | 7.48% | 10.81% | 12.86% | 8.62% | 8.18% | 4.41% | 17.44% | 11.46% | 8.45% | 11.38% | 7.82% |
| EBITDA Growth % | 5.58% | 32.9% | 67.36% | 1469.86% | -96.11% | -19.52% | 2.69% | -19.16% | 10.46% | -19.28% | 38.54% | 35.86% | -49.91% | 35.61% | 107.5% | -65.96% | 67.4% | 67.44% | -54.05% | 34.22% | -38.59% | -15.72% | 55.96% | -4.13% | 82.46% | -78.42% | 83.14% | 41.16% | -34.42% | 56.46% | -20.37% |
| D&A (Non-Cash Add-back) | 1.12B | 1.13B | 1.39B | 1.26B | 1.6B | 1.32B | 1.07B | 904M | 1.09B | 1.02B | 1.27B | 1.28B | 1.19B | 1.35B | 1.43B | 1.46B | 1.42B | 1.47B | 1.19B | 852.54M | 834.22M | 1.51B | 2.29B | 2.01B | 2.19B | 2.8B | 2.33B | 1.86B | 1.88B | 1.68B | 1.66B |
| EBIT | 1.54B | 1.51B | 460M | -220M | -1.49B | 673M | 1.69B | 1.72B | 1.71B | 1.62B | 1.38B | 782M | 600M | 1.93B | 698M | -366M | 2.29B | 839M | 1.65B | 1.86B | 1.2B | 1.56B | 1.16B | 894.08M | 916.76M | 93.28M | 4.45B | 1.8B | 1.02B | 1.74B | 688.57M |
| Net Interest Income | -233.12M | -223.8M | -257M | -260M | -219M | -146M | -178.98M | -179.08M | -219M | -81M | -421M | -223M | -188M | -330M | -329M | -331M | -121M | -166M | 88M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 117.22M | 108.54M | 79M | 46M | 25M | 18M | 14.82M | 30.22M | 51M | 126M | 76M | 98M | 114M | 70M | 106M | 112M | 214M | 225M | 140M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 350.17M | 332.34M | 337M | 306M | 244M | 164M | 193.8M | 209.3M | 264M | 263M | 569M | 467M | 415M | 400M | 352M | 352M | 336M | 391M | 246M | 0 | 0 | 0 | 0 | 439.1M | 5.97B | 4.6B | 0 | 0 | 0 | 0 | 1.58B |
| Other Income/Expense | -211.31M | -242M | -406M | -412M | -202M | -44M | -53M | -119M | -216M | -140M | -75M | -329M | -239M | -194M | -329M | -541M | -131M | -166M | 88M | 2.62B | 28.03M | 1.28B | 666.13M | 204.86M | -3.6B | -1.66B | 5.91B | 390.56M | -103.17M | 213.64M | -714.28M |
| Pretax Income | 1.27B | 1.18B | 123M | -527M | -1.73B | 509M | 1.21B | 1.25B | 1.5B | 1.38B | 1.39B | 623M | 185M | 1.66B | 784M | -509M | 1.94B | 448M | 142M | 4.47B | 1.22B | 1.89B | 1.82B | 692.39M | -3.18B | -3.03B | 10.2B | 2.15B | 578.96M | 1.91B | 439.5M |
| Pretax Margin % | 7.18% | 6.63% | 0.68% | -2.9% | -9.71% | 2.97% | 6.99% | 7.27% | 8.29% | 7.74% | 5.67% | 2.57% | 0.86% | 7.12% | 3.16% | -2.25% | 7.64% | 1.93% | 0.54% | 16.66% | 4.51% | 6.21% | 6.01% | 2.39% | -9.99% | -9.35% | 26.87% | 6.8% | 1.91% | 5.56% | 1.38% |
| Income Tax | 299.72M | 282M | 963M | -73M | -113M | -103M | 212M | 258M | 193M | 349M | 327M | 239M | 26M | 466M | 308M | 283M | 509M | 100M | 256M | 622.77M | 137.14M | 585.95M | 357.77M | -15.09M | 26.68M | -421.47M | 571.77M | 336.89M | 40.93M | 431.82M | 106.06M |
| Effective Tax Rate % | 23.58% | 23.86% | 782.93% | 13.85% | 6.53% | -20.24% | 17.51% | 20.69% | 12.84% | 25.34% | 23.54% | 38.36% | 14.05% | 28.06% | 39.29% | -55.6% | 26.2% | 22.32% | 180.28% | 13.93% | 11.27% | 31.08% | 19.64% | -2.18% | -0.84% | 13.91% | 5.61% | 15.69% | 7.07% | 22.63% | 24.13% |
| Net Income | 972.48M | 895M | -702M | -466M | -1.61B | 3.32B | 1.19B | 1.17B | 1.09B | 1.66B | 1.45B | 645M | 415M | 1.17B | 226M | -1.29B | 1.45B | 410M | -92M | 4.17B | 5.38B | 2.87B | 2.83B | 693.19M | -3.21B | -2.61B | 9.63B | 1.8B | 6.02B | 2.57B | -272.38M |
| Net Margin % | 5.49% | 5.02% | -3.9% | -2.56% | -9.02% | 19.35% | 6.86% | 6.81% | 6.02% | 9.32% | 5.91% | 2.66% | 1.94% | 5.01% | 0.91% | -5.74% | 5.69% | 1.77% | -0.35% | 15.56% | 19.96% | 9.44% | 9.35% | 2.39% | -10.07% | -8.05% | 25.36% | 5.72% | 19.88% | 7.5% | -0.85% |
| Net Income Growth % | 160.72% | 227.49% | -50.64% | 71.02% | -148.45% | 179.61% | 1.71% | 7.06% | -34.22% | 14.43% | 124.5% | 55.42% | -64.5% | 417.26% | 117.45% | -189.56% | 252.68% | 545.65% | -102.2% | -22.45% | 87.81% | 1.14% | 308.86% | 121.6% | -23% | -127.09% | 433.51% | -70.02% | 134.07% | 1044.21% | -121.12% |
| Net Income (Continuing) | 971.4M | 900M | -840M | -454M | -1.62B | 612M | 999M | 989M | 1.31B | 1.03B | 831M | 160M | 221M | 1.03B | -166M | -1.05B | 1.47B | 424M | -95M | 4.61B | 900.89M | 2.88B | 2.58B | 707.48M | -3.21B | -2.61B | 9.63B | 1.81B | 541.44M | 1.22B | 128.56M |
| Discontinued Operations | -1000K | -4M | 142M | -10M | 13M | 2.71B | 196M | 183M | 0 | 843M | 660M | 479M | 190M | 138M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 26.03M | 32M | 37M | 33M | 34M | 36M | 31M | 28M | 29M | 24M | 907M | 118M | 101M | 13M | 34M | 34M | 46M | 49M | 46M | 41.84M | 131.08M | 331.81M | 282.53M | 174.69M | 179.16M | 202.3M | 470.62M | 333.91M | 240.45M | 1.08B | 699.02M |
| EPS (Diluted) | 1.00 | 0.93 | -0.75 | -0.49 | -1.68 | 0.64 | 1.23 | 1.20 | 1.09 | 1.64 | 1.46 | 0.66 | 0.42 | 1.19 | 0.23 | -1.27 | 1.44 | 0.41 | -0.09 | 3.58 | 4.27 | 2.15 | 2.07 | 0.51 | -2.36 | -1.91 | 6.79 | 1.32 | 4.26 | 1.88 | -0.19 |
| EPS Growth % | 152.5% | 224% | -53.06% | 70.83% | -362.5% | -47.97% | 2.5% | 10.09% | -33.54% | 12.33% | 121.21% | 57.14% | -64.71% | 417.39% | 118.11% | -188.19% | 251.22% | 573.44% | -102.42% | -16.16% | 98.6% | 3.86% | 305.88% | 121.61% | -23.56% | -128.13% | 414.39% | -69.01% | 126.6% | 1089.47% | -182.61% |
| EPS (Basic) | - | 0.95 | -0.75 | -0.49 | -1.68 | 0.67 | 1.25 | 1.21 | 1.11 | 1.67 | 1.48 | 0.66 | 0.42 | 1.20 | 0.23 | -1.28 | 1.44 | 0.41 | -0.09 | 3.61 | 4.30 | 2.15 | 2.08 | 0.51 | -2.36 | -1.91 | 6.86 | 1.32 | 4.29 | 1.88 | -0.19 |
| Diluted Shares Outstanding | 968.53M | 962.5M | 933.37M | 948.79M | 952.46M | 950.28M | 957.56M | 972.79M | 997.48M | 1.01B | 989.95M | 984.45M | 983.48M | 982.79M | 987.99M | 1.02B | 1.01B | 990.22M | 1.06B | 1.17B | 1.26B | 1.34B | 1.37B | 1.36B | 1.36B | 1.36B | 1.42B | 1.37B | 1.37B | 1.37B | 1.4B |
| Basic Shares Outstanding | 951.57M | 962.37M | 933.37M | 948.79M | 952.46M | 907.46M | 948.26M | 962.2M | 983.77M | 989.96M | 978.47M | 976.41M | 975.46M | 971.07M | 987.99M | 1.02B | 1B | 986.43M | 1.06B | 1.16B | 1.25B | 1.33B | 1.36B | 1.36B | 1.36B | 1.36B | 1.4B | 1.37B | 1.37B | 1.37B | 1.4B |
| Dividend Payout Ratio | - | 36.65% | - | - | - | 17.17% | 0.08% | 43.45% | 36.79% | 23.17% | 22.79% | 46.2% | 70.36% | 23.27% | 112.83% | - | 20.47% | 154.63% | - | - | 9.71% | 17.56% | 16.22% | 66.21% | - | - | 4.16% | 20.04% | 5.4% | 9.72% | - |
Regulatory and litigation overhang
As indicated by the most recent quarterly data, Philips continues to struggle with top-line growth, reporting a 3.1% revenue decline in 2026Q1, which underscores the ongoing difficulty in reversing a multi-quarter trend of negative year-over-year performance across its core medical technology and consumer segments.
The consistent inability to achieve positive revenue growth suggests that the company is losing market share or facing significant headwinds in its hospital equipment installation cycles. Investors should monitor whether the shift toward informatics and software-led revenue can eventually offset the structural decline in legacy hardware sales.
According to the provided financial statements, gross margins have fluctuated significantly, dropping to 38.9% in 2024Q4 before recovering to 45.2% in 2026Q1, reflecting the company's ongoing struggle to maintain pricing power amidst supply chain disruptions and the high costs of remediating its product portfolio.
The volatility in gross margins suggests that Philips lacks the consistent pricing power seen in its more specialized med-tech peers. This instability appears to be a direct consequence of operational inefficiencies and the high cost of maintaining quality control in its complex manufacturing environment.
Based on reported figures, operating margins have remained thin, peaking at 10.6% in 2025Q4 but frequently dipping into low single digits, which indicates that the company has failed to achieve meaningful operating leverage despite its significant scale and long-standing presence in the global healthcare market.
The persistent gap between gross profit and operating income suggests that SG&A expenses remain disproportionately high, likely due to ongoing restructuring and legal costs. This lack of scalability implies that the current operating model may be too bloated to deliver the margin expansion expected by shareholders.
As evidenced by the extreme variance in net income, ranging from a $999 million loss in 2024Q1 to a $451 million profit in 2024Q2, the quality of reported earnings appears highly compromised by non-recurring litigation charges and significant restructuring expenses that obscure underlying operational performance.
The erratic nature of EPS suggests that investors should rely more on normalized cash flow metrics rather than reported net income to gauge the company's true health. The frequent inclusion of large, non-operating charges warrants deep skepticism regarding the sustainability of current bottom-line profitability.
While management emphasizes a pivot toward high-margin software, the income statement data reveals that R&D spending remains elevated at over $400 million per quarter without yielding a clear inflection in revenue growth, suggesting that the company's technological investments may not be translating into competitive market advantages.
Short-sellers would likely focus on the fact that the company continues to burn through significant capital while struggling to stabilize its core business. The reliance on recurring service revenue may not be sufficient to offset the potential for further market share loss in the competitive respiratory and imaging sectors.
Quick answers to the most common questions about buying PHG stock.
For fiscal year 2025, Koninklijke Philips N.V. (PHG) reported total revenue of $17.83B. This represents a 44.1% decline compared to $31.92B in 1996.
Koninklijke Philips N.V. (PHG) is profitable, generating $895.0M in net income for the fiscal year ending 2025 with a net profit margin of 5.0%.
Koninklijke Philips N.V. (PHG) reported an operating income of $1.42B, resulting in an operating profit margin of 8.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Koninklijke Philips N.V. (PHG) generated $8.06B in gross profit for the year, representing a gross profit margin of 45.2%. This demonstrates the company's core pricing power and production efficiency.