Philips, the Dutch electronics and medical device manufacturer, announced that it has returned to profitability for the first time since 2021, reporting a net profit of 897 million euros for the year 2025. This financial turnaround comes after the company faced considerable challenges, including scrutiny over faulty sleep apnoea machines that had marred its reputation. The CEO, Roy Jakobs, emphasized the company's resilience and ability to navigate a dynamic macroeconomic environment, highlighting robust margin expansion achieved despite external pressures such as tariffs.

The reported profit exceeded analysts' expectations, who had predicted a profit of around 775 million euros for the year. Alongside the profit announcement, Philips disclosed overall sales of 17.8 billion euros in 2025, a slight decline from 18.0 billion euros reported in 2024. Nevertheless, this figure still surpassed analysts' consensus forecast of 17.7 billion euros. The financial results signify a critical recovery phase for Philips, which has shifted its focus more towards medical care technology in recent years, divesting from its once iconic consumer electronics and lighting divisions.

Philips' journey to reclaim profitability reflects broader efforts within the company to strengthen its market position and enhance operational efficiency. The successful turnaround is seen as a necessary move to restore investor confidence and stabilize the company’s financial health after years of setbacks. As Philips continues to prioritize innovation in health technology, it remains to be seen how these strategic changes will affect its long-term growth and competitive standing in the industry.