Finance
Philips cuts 2026 sales growth forecast
Published by Global Banking & Finance Review®
Posted on February 10, 2026
1 min readLast updated: February 10, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 10, 2026
1 min readLast updated: February 10, 2026
Philips revises its 2026 sales growth forecast to 3-4.5% due to increased U.S. tariffs, impacting margins despite cost cuts. Free cash flow is expected between 1.3 and 1.5 billion euros.
Feb 10 - Dutch healthtech company Philips on Tuesday forecast comparable sales growth of 3% to 4.5% for 2026, below the roughly 4.5% expected previously.
The company also said that it expects to generate free cash flow of between 1.3 billion and 1.5 billion euros.
CEO Roy Jakobs said in December that the impact of U.S. tariffs was expected to "almost double" this year, pressuring margins despite ongoing cost cuts.
(Reporting by Leo Marchandon in Gdansk)
Free cash flow is the cash generated by a company after accounting for capital expenditures. It indicates how much cash is available for distribution among all security holders.
U.S. tariffs are taxes imposed on imported goods and services. They are used to protect domestic industries and can influence prices and trade relationships.
Comparable sales refer to the sales of similar products or services in a specific market. They are used to gauge performance and set future sales expectations.
Margin pressure occurs when a company's profit margins are squeezed due to rising costs or competitive pricing, impacting overall profitability.
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