Philips(US:PHG) ZACKS·2026-02-11 18:21Core Insights - Koninklijke Philips (PHG) reported a fourth-quarter 2025 earnings of €0.41 per share, recovering from a loss of €0.35 per share in the same quarter last year [1] - The company's sales increased by 1.1% year-over-year to €5.09 billion, with comparable sales rising by 7% across all segments [1][2] - The company anticipates 3%-4.5% comparable sales growth and an adjusted EBITA margin between 12.5% and 13% for 2026 [10] Sales Performance - Comparable order intake increased by 7% year-over-year in the fourth quarter, with growth geographies showing a 15% increase, primarily driven by Personal Health [2] - Sales in Mature geographies grew by 4%, mainly due to strong contributions from North America and Connected Care [2] - Personal Health revenues grew by 9% year-over-year to €1.11 billion, with comparable sales increasing by 14% [4] Segment Analysis - Diagnosis & Treatment revenues declined by 2% year-over-year to €2.40 billion, although comparable sales increased by 4% [3] - Connected Care revenues remained stable at €1.42 billion year-over-year, with comparable sales up by 7% [3] - Other segment sales amounted to €155 million, reflecting a 2.6% year-over-year increase [4] Financial Metrics - Gross margin contracted by 600 basis points to 44.9% year-over-year [5] - Adjusted EBITA increased by 13.4% year-over-year to €770 million, with an EBITA margin expanding by 160 basis points to 15.1% [6] - Free cash flow was reported at €1.2 billion, compared to €1.28 billion in the year-ago quarter [9] Balance Sheet Overview - As of December 31, 2025, cash and cash equivalents were €2.40 billion, up from €1.91 billion as of September 30, 2025 [9] - Total debt decreased to €8.084 billion from €8.385 billion as of September 30, 2025 [9] - Operating cash flow was €1.39 billion, slightly down from €1.45 billion in the previous year [9]