Philips has raised its full-year profit forecast after receiving 186 million euros ($211 million) in refunded US import tariffs, following a Supreme Court ruling in February 2026 that struck down the bulk of President Donald Trump's levies. The Dutch health technology company now expects an adjusted EBITA margin of 13.5% to 14%, up from its prior guidance of 12.5% to 13%.
Second-quarter sales grew 4% to 4.4 billion euros, with net profit reaching 386 million euros, up from 240 million euros a year earlier. The tariff refund contributed 4.2 percentage points to the quarter's 16.4% adjusted margin. Chief Executive Roy Jakobs said Philips was among the first companies to reclaim the funds.
Despite the stronger earnings, Philips shares fell roughly 10% in early trading as orders from China declined amid weak economic conditions and policies curbing medical equipment imports. The company also maintains its annual revenue growth forecast of 3% to 4.5% while facing ongoing litigation tied to its 2021 DreamStation device recall.