Dutch health technology company Philips has revised down its projected impact from US import tariffs after a recent trade agreement between the United States and the European Union set a 15% tariff rate on most EU goods.
In a statement released Tuesday, the company said it now expects the cost of the tariffs to range between €150 million and €200 million, significantly lower than its earlier estimate of €250 million to €300 million. Philips noted that the situation “has evolved and continues to be dynamic,” reflecting ongoing adjustments in global trade conditions.
The update came alongside Philips’ second-quarter earnings results, which showed stronger-than-expected profitability. The firm reported an adjusted EBITA margin of 12.4% for the quarter, surpassing analysts’ average forecast of 9.9%, according to company-compiled data. As a result, Philips raised its full-year core profit margin outlook to between 11.3% and 11.8%, up from its previous forecast of 10.8% to 11.3%.
Sales for the quarter came in at €4.3 billion, in line with market expectations. The company reported a 6% growth in comparable order intake, driven by demand for its advanced diagnostic technologies, particularly AI-enabled systems.
“Our results this quarter reflect strong operational performance and continued momentum in strategic areas,” the company said, highlighting innovation in medical imaging and diagnostics as key growth drivers.
Philips, which operates across Personal Health, Diagnosis & Treatment, and Connected Care divisions, manufactures a range of products including toothbrushes, diagnostic scanners, and critical care systems. The company has increasingly positioned itself as a leader in medical technology, shifting focus from consumer electronics to healthcare innovation.
One of the notable developments during the quarter was the signing of a long-term agreement with the Indonesian Ministry of Health. Under the deal, Philips will supply its Azurion image-guided therapy system to support cardiac, stroke, and cancer care across the country. The agreement aligns with Philips’ growing push into emerging markets and further supports its focus on expanding its presence in the hospital and clinical care sectors.
While the newly imposed tariffs will still have a financial impact, the reduced burden offers relief to the Amsterdam-based firm, which has been navigating a complex global trade environment alongside supply chain challenges and regulatory pressures in recent years.
The positive earnings and outlook revision come as Philips seeks to rebuild investor confidence following previous setbacks related to product recalls and litigation in its respiratory business.
