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Amsterdam-based electronics and healthcare company Philips returned to profitability in 2025, reporting its first annual profit in four years as it continues to manage the fallout from a recall of sleep apnoea devices.
The Dutch manufacturer posted a net profit of 897 million euros last year, reversing three consecutive years of losses. Analysts had expected a profit of around 775 million euros, according to consensus estimates compiled by the company.
Chief Executive Roy Jakobs said the company had strengthened its operations amid challenging global conditions. “We strengthened our company while navigating a dynamic macro environment. We ended the year with strong, robust margin expansion despite tariffs,” he said in a statement.
Philips reported annual sales of 17.8 billion euros, slightly down from 18.0 billion euros in 2024 but above analysts’ expectations of 17.7 billion euros. The company has increasingly focused on medical technology in recent years, divesting consumer electronics and other non-core businesses to concentrate on healthcare solutions.
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The results mark a milestone for the Amsterdam-based firm, which has faced scrutiny and financial pressure following a global recall of certain sleep apnoea devices linked to potential health risks. The recall forced the company to absorb significant costs in prior years, contributing to its three-year run of losses.
Jakobs highlighted that the company’s operational improvements and portfolio focus were key factors in returning to profit. “We achieved margin expansion and maintained resilience despite trade headwinds and regulatory challenges,” he said.
Analysts said the results signal Philips’ gradual recovery from its device-related crisis, though they cautioned that the company will need to sustain performance while managing the ongoing legal and regulatory ramifications of the recall.
The company’s 2025 performance reflects a continued shift toward medical care technology, including imaging systems, patient monitoring, and connected healthcare devices. Philips’ strategy emphasizes higher-value healthcare segments and global expansion, a move analysts say has contributed to revenue stability despite declining consumer electronics sales.
Investors reacted positively to the results, with the profit exceeding expectations and sales broadly in line with forecasts. Market analysts noted that achieving profitability in the wake of a multi-year recall demonstrates the company’s operational adjustments and strategic refocusing.
Philips’ recovery comes amid a broader European medical technology sector rebound, as demand for healthcare devices and services has remained resilient despite inflationary pressures and international trade disruptions.
The company did not provide detailed guidance for 2026 in its statement but indicated that it would continue to prioritize operational efficiency, portfolio rationalization, and expansion in high-growth healthcare markets.
