Philips shares drop over 7% after management lowers growth outlook
Shares of Dutch health technology company Philips (PHG.AS) fell more than 7% on Thursday, marking their biggest decline in nearly 10 months, following comments from CEO Roy Jakobs at Citi’s Global Healthcare Conference.
Shares of Dutch health technology company Philips (PHG.AS) fell more than 7% on Thursday, marking their biggest decline in nearly 10 months, following comments from CEO Roy Jakobs at Citi’s Global Healthcare Conference, News.Az reports, citing Reuters.
Jakobs signaled that organic sales growth is expected to improve in 2026 from the roughly 2% projected for this year, but cautioned that growth is “unlikely” to double, below the 4.5% consensus estimate. Management also highlighted tariff headwinds, which are expected to nearly double next year, and a hospital capital spending environment similar to 2025, with strong U.S. demand, steady European markets, and muted conditions in China.
Philips reported third-quarter profit above expectations in November, supported by AI product launches and tariff mitigation measures, with sales up 3%. By 0942 GMT Thursday, the stock was down 7.2%, leading losses on the STOXX 600 index and down over 8% year-to-date.
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