Royal Philips NV's stock surged 9.55% during intraday trading on Tuesday, driven by the company's fourth-quarter 2025 financial results that significantly exceeded analyst expectations.

The Dutch health-technology company reported a 7% increase in comparable sales for the quarter, beating the consensus estimate of 4.9%. The performance was driven by growth across all business segments, with Personal Health leading at 14% growth. More importantly, the company's adjusted EBITA margin expanded strongly by 160 basis points to 15.1%, well above the expected 13.5%, as higher sales from profitable innovations and productivity measures more than offset tariff impacts.

The positive market reaction was further fueled by the company's 2026 guidance and mid-term targets. Philips expects comparable sales growth of 3% to 4.5% this year with an adjusted EBITA margin of 12.5% to 13%. Additionally, the company set 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. The proposed reappointment of CEO Roy Jakobs also signaled confidence in the company's leadership and strategic direction as it enters a new phase of driving profitable growth.