Philips books €897 million profit in 2025; First annual profit since 2021
Philips closed a year with a net profit for the first time since 2021. The healthcare technology recorded a profit of €897 million in 2025, compared to a loss of €698 million a year earlier, the company announced on Tuesday.
Philips managed to maintain sales despite additional import tariffs in the United States. The company also improved profitability through cost-saving measures and by spending less money on the massive recall of sleep apnea devices and related lawsuits.
In 2025, Philips recorded revenues of €17.8 billion, a 2 percent increase compared to 2024, adjusted for exchange rate fluctuations and the sale of business units, among other things. Sales of personal care products particularly increased.
Philips CEO Roy Jakobs is pleased with what the company achieved in 2025. “We strengthened our company while navigating a dynamic macro-environment. We ended the year with strong order growth and sales, robust margin expansion despite tariffs, solid cash generation, and we exited the year with a robust balance sheet.”
The company also announced its targets for the coming years. Philips wants to cut another €1.5 billion in costs by 2028 and is aiming for an annual revenue growth of around 5 percent. Philips already cut thousands of jobs and implemented other cost-saving measures in the past three years.
In the coming years, Philips wants to work faster and more cost-effectively, partly through the use of artificial intelligence. “Simplification and AI will drive enhanced productivity and speed,” the company said. The company is already using AI “extensively” for programming in its IT, Jakobs said. Philips is also incorporating AI into more of its products.
The company considers North America its most important growth market, but warned that the United States import tariffs will cost several hundred million euros in the coming year.
