Royal Philips NV (PHG) shares surged 9.08% in overnight trading, driven by the company's better-than-expected fourth-quarter financial performance and optimistic mid-term targets.
The Dutch health-technology company reported a 7% increase in comparable sales for Q4 2025, surpassing analyst consensus. Adjusted EBITA margin expanded strongly to 15.1%, significantly above expectations, as higher sales from profitable innovations and productivity measures more than offset tariff impacts. The company also announced new financial targets for 2026-2028, including mid-single-digit comparable sales growth and a mid-teens adjusted EBITA margin by 2028, which analysts view as providing upside to consensus estimates.
Market analysts highlighted that Philips' results beat guidance across key metrics, with the stronger outlook supported by operational improvements and execution. The company's proposal to re-appoint CEO Roy Jakobs further signals confidence in its leadership and strategic direction as it enters a new phase of driving profitable growth.