Dutch healthcare technology giant Philips has raised its 2026 earnings outlook after receiving €186 million ($211 million) in refunds from the United States for import tariffs previously paid under former President Donald Trump’s trade measures. The refund significantly boosted the company’s second-quarter financial performance and improved its profitability.
Philips Chief Executive Officer Roy Jakobs said the company acted quickly after the US Supreme Court ruled earlier this year that most of the tariffs exceeded presidential authority. According to Jakobs, Philips was among the first companies to submit refund claims, allowing it to recover almost all of the levies it had paid.
The company reported a second-quarter net profit of €386 million, up from €240 million in the same period last year, while revenue increased to €4.4 billion, reflecting 4% comparable sales growth across its business segments. Philips also lifted its adjusted EBITA margin forecast for 2026 to 13.5%–14.0% and increased its free cash flow guidance to €1.5–1.7 billion, citing the tariff refund as a key factor.
Despite the improved financial outlook, Philips warned that it continues to face challenges from higher operating costs, delays in some large North American orders and weaker demand in China. Investors reacted cautiously, with the company’s shares falling after management highlighted ongoing market uncertainties despite the stronger earnings guidance.
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