Philips posts €897 million profit in 2025
Philips bounces back after reorganizations and costly years.
Published on February 11, 2026
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Philips posted a profit of €897 million last year, according to its annual report. From 2021 onwards, the company faced many problems due to the sleep apnoea affair, in which CPAP and ventilation devices did not perform well. Internal cost-cutting measures, radical reorganisations, and a recovery in sales of shavers and toothbrushes are helping the healthcare group out of its slump.
According to CEO Roy Jakobs, sales of medical equipment are doing particularly well in the US despite import tariffs. For example, Philips has entered into a five-year strategic partnership with AdventHealth. AdventHealth is a large non-profit healthcare system in the US with more than 50 hospital campuses in nine states.
The collaboration includes the replacement and upgrade of patient monitors across the entire network.
Use of AI
According to the annual report, AI is central to the company's healthcare strategy. It is integrated into medical equipment and software to improve diagnostics, optimise image analysis, automate workflows, and support clinical decision-making.
Cloud-based, AI-powered platforms help manage large amounts of health data. They also enable remote and home care and reduce administrative tasks for healthcare professionals, allowing them to focus more on patients.
Partnerships with AI companies and healthcare systems support the development of advanced solutions such as predictive analytics and precision diagnostics, improving the accuracy, consistency, and speed of care delivery.
Reorganisations
Over the past year, Philips has undergone several reorganisations. Among other things, the finance and IT departments were restructured, and the medical campus in Best was also affected. In each case, small groups of several dozen jobs were cut.
A reorganisation in 2025, increased sales, and reduced expenditure helped the company recover. Despite American import duties, turnover rose to €17.8 billion. The consumer division, known for its electric toothbrushes and shavers, saw a particular increase in demand. This branch, the smallest within the company, focuses primarily on healthcare technology.