Core Insights - Philips has demonstrated strong order growth and sales in 2025, with a robust balance sheet and margin expansion despite external challenges [2][6][7] Financial Performance - For the full year 2025, comparable order intake increased by 6%, while comparable sales growth was 2%. In Q4, comparable order intake rose by 7%, and group sales reached EUR 5.1 billion, reflecting a 7% increase [6][7] - Adjusted EBITA margin improved by 80 basis points to 12.3% for the full year and by 160 basis points to 15.1% in Q4, driven by higher sales and productivity [6][7] - Free cash flow for 2025 was EUR 512 million, with Q4 free cash flow at EUR 1,200 million [6][8] Segment Performance - Diagnosis & Treatment segment saw a 4% increase in comparable sales in Q4, with an adjusted EBITA margin of 11.8% [9] - Connected Care segment experienced a 7% increase in comparable sales in Q4, with an adjusted EBITA margin of 16.5% [10] - Personal Health segment reported a 14% increase in comparable sales in Q4, with an adjusted EBITA margin of 23.0% [11] Innovation and Strategic Initiatives - Philips launched several innovations, including the Azurion neuro biplane platform and a helium-free 3.0T MR system, enhancing its product offerings in healthcare [3][15] - The company has entered a five-year strategic partnership with AdventHealth to upgrade patient monitoring systems across its network [15] - Philips aims to drive profitable growth through segment-specific strategies, innovation, and disciplined execution, with a focus on integrating AI and data into healthcare solutions [19][20][21] Future Outlook - For 2026, Philips anticipates mid-single-digit comparable sales growth CAGR and a mid-teens adjusted EBITA margin by 2028 [24][23] - The company plans to achieve cumulative free cash flow of EUR 4.5-5.0 billion over the 2026-2028 period and EUR 1.5 billion in productivity savings [24]