Philips shares drop 10% as Q2 results reveal slowing orders

Philips reported its second‑quarter 2026 earnings, posting revenue of €4.36 billion, up 4% year‑on‑year, and net profit of €386 million, a 61% increase. Adjusted EBITDA rose to €717 million from €540 million, and free‑cash‑flow guidance was lifted to €1.5‑1.7 billion. The results were tempered by weaker order flows in the United States and China, where U.S. tariff reimbursements and higher commercial fees offset some gains. Investors reacted sharply, sending the Amsterdam‑listed share price down more than 10% on the opening bell, signalling concern that growth is increasingly reliant on cost optimisation rather than robust demand.

The company reaffirmed its 2026 outlook, expecting comparable‑sales growth of 3%‑4.5% and an adjusted EBITDA margin of 13.5%‑14%.