Koninklijke Philips N.V. (PHG) AI Stock Analysis

Koninklijke Philips N.V., headquartered in Amsterdam, operates across three main segments: Diagnosis & Treatment Businesses, Connected Care Businesses, and Personal Health Businesses. The Diagnosis & Treatment segment provides diagnostic imaging solutions such as magnetic resonance imaging (MRI), computed tomography (CT) systems, X-ray systems, molecular imaging, integrated interventional systems, and diagnostic informatics software. The Connected Care segment delivers acute patient management, emergency care, sleep and respiratory care, and electronic medical records. The Personal Health segment manufactures and markets consumer health items, including power toothbrushes, infant feeding products, male grooming and beauty products, and interdental cleaning devices.

Revenue recorded a 5-year CAGR of 0.6% from FY2020 to FY2025. Annual revenue moved from $17.16B in FY2021 to $17.83B in FY2022, $18.17B in FY2023, $18.02B in FY2024, and $17.83B in FY2025. Following net income of -$1.61B in FY2022, -$466.0M in FY2023, and -$702.0M in FY2024, net income reached $895.0M in FY2025 as gross margin expanded to 45.2% and operating margin rose to 8.0%. Over the trailing twelve months ended June 30, 2026, revenue stood at $17.66B with an operating margin of 14.0% and EPS of $1.34. In the latest quarter, year-over-year revenue growth was 0.5% and quarterly earnings growth was 61.4%.

As of June 30, 2026, Philips held $1.79B in cash and short-term investments alongside total debt of $7.46B, resulting in net debt of $5.68B. Total assets stood at $26.70B compared to shareholders' equity of $11.45B, representing a debt-to-equity ratio of 0.65 and a current ratio of 1.26. In FY2025, the company generated $1.16B in operating cash flow and $893.0M in free cash flow. Capital expenditures totaled $269.0M, while dividends paid amounted to $328.0M.

At its last close of $25.74 on October 16, 2026, Philips traded at a market cap of $25.16B and an enterprise value of $30.99B. Its trailing P/E ratio is 19.2x, below the 24.6x median of its US-listed Healthcare peers. The forward P/E stands at 12.7x versus the peer median of 17.3x, and its EV/EBITDA is 9.0x compared to the peer median of 12.0x. Over the past year, the stock fell 5.6%, trailing the S&P 500 return of 16.8%. Over five years, the stock dropped 32.6% while the S&P 500 rose 83.0%.

Philips pays an annual dividend with a forward payout of $1.01 per share, representing a dividend yield of 3.94% and a payout ratio of 51.7%. The dividend has been paid for 3 consecutive years, with an annualized 5-year dividend growth rate of 0.7%. The last ex-dividend date occurred on May 13, 2026.

Wall Street analysts hold 2 Buy ratings and 3 Hold ratings on Philips, with no Strong Buy, Sell, or Strong Sell ratings. The mean price target of $32.02 is 24.4% above the last close of $25.74. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $1.75 on revenue of $17.93B. Philips beat EPS estimates in all 4 of the last 4 quarters, and its next earnings date is November 3, 2026.

This page is an AI-written research summary of Koninklijke Philips N.V. (PHG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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