Philips Reports Strong Q3 Profit Driven by AI Tools and Tariff Mitigation

November 06, 2025
Royal Philips reported third-quarter earnings above expectations, supported by new AI-powered medical tools and actions to offset tariff impacts. The company recorded €531 million in adjusted EBITA and a 3% increase in sales, led by strong North American performance.

Royal Philips reported third-quarter earnings that exceeded market expectations, supported by the launch of artificial intelligence tools and measures to offset the impact of trade tariffs. The company posted adjusted earnings before interest, tax, and amortization of 531 million euros, above analyst forecasts of 484 million euros. Sales rose 3% to 4.3 billion euros, driven by solid performance in North America.

Chief Executive Officer Roy Jakobs said the company successfully reduced the effect of U.S. tariffs through supply chain investments in the United States and China. He noted that tariffs divert resources from patient care, emphasizing that healthcare systems are already under financial strain.

From January to September 2025, Philips invested 1.23 billion euros in research and development, focusing on artificial intelligence across its product portfolio. The company is developing AI-powered tools for patient monitoring, medical imaging, and diagnostic support, using patient and customer data to build specialized models. Philips reaffirmed its full-year sales and earnings guidance.

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