Philips sees strong profit growth in first quarter

Philips reported that its first-quarter profits doubled year on year, while maintaining its sales outlook as the company continues efforts to move beyond a long-running scandal involving defective sleep apnea devices.

The Dutch electronics and medical technology firm posted net profits of 146 million euros ($171 million), up from 72 million euros in the same quarter last year, News.Az reports, citing AFP.

This compares with 397 million euros in the fourth quarter of 2025.

“We delivered a good start to 2026... reflecting disciplined execution against our plan in an uncertain macro-environment,” chief executive Roy Jakobs said in a statement.

The company reaffirmed its full-year 2026 sales forecast, expecting growth between 3.0 and 4.5 percent, noting that the guidance accounts for potential uncertainties, including US tariff risks.

Philips reported first-quarter sales of 3.9 billion euros, down from 4.1 billion euros in the same period in 2025. The company said performance was supported by strong demand in Europe and North America.

Earlier in February, Philips posted its first annual profit after three consecutive years of losses, reporting a better-than-expected gain of 897 million euros.

Once known globally for products ranging from lightbulbs to televisions, the Amsterdam-based company has in recent years shifted its focus toward healthcare technology.

However, Philips has been dealing with the aftermath of a major crisis involving its DreamStation sleep apnea devices, part of its respiratory care line. Since 2021, millions of machines have been recalled amid concerns that sound-dampening foam could degrade and be inhaled by users, raising potential health risks, including cancer concerns.

In April 2024, the company reached a $1.1 billion settlement in the United States to resolve related lawsuits over the faulty devices.

News.Az 

By Nijat Babayev