Philips Raises Outlook After €186m US Tariff Refund

Philips said its earnings outlook improved after the Dutch healthcare technology group secured €186 million, or $211 million, in US tariff refunds.

Director general Roy Jakobs said Philips recovered almost all the money it had paid after applying for refunds following a US Supreme Court ruling.

The court ruled in February that most of US President Donald Trump’s tariff measures exceeded his authority to regulate commerce.

Jakobs said Philips submitted the required documents quickly and was among the first companies to recover nearly all the cash. The group generates almost half its sales in North America and had been heavily affected by the tariffs.

The refund helped Philips report better-than-expected second-quarter profit margins. The remainder is due to be paid during the third quarter, although the company still faces more recently imposed US customs duties.

Philips reported second-quarter net profit of €386 million, up from €240 million in the same period in 2025.

Quarterly sales increased to €4.4 billion from €4.3 billion a year earlier. The company maintained its forecast for annual revenue growth of between 3% and 4.5%.

Philips, once known for products including light bulbs and televisions, has shifted its focus to medical equipment.

The company continues to face legal proceedings linked to its 2021 recall of DreamStation sleep apnoea machines over concerns that users could inhale pieces of noise-cancelling foam and that the material could potentially cause cancer.

In April 2024, Philips agreed to pay $1.1 billion to settle US lawsuits over the devices without admitting liability.