Philips Delivers 1%-3% Growth in 2025 Comparable Sales Despite Chinese Market Challenges

Philips, the multinational corporation specializing in health technology, lighting, and consumer electronics, has reported a 1%-3% growth in 2025 comparable sales. Despite facing double-digit declines in demand in both consumer and health systems in China, the company has managed to maintain a strong performance in other regions and drive margin expansion. This article explores the key factors contributing to Philips' growth and the strategic initiatives that have enabled the company to overcome market challenges.



Philips' growth in 2025 can be attributed to several strategic focus areas and innovative solutions. The company's commitment to healthcare technology and innovation has driven its success in the market. One of the key innovations that contributed to Philips' growth was the FDA clearance of the Philips CT 5300 and Philips Spectral CT 7500 RT. These advancements in medical imaging technology have allowed Philips to provide more accurate and efficient diagnostic services, contributing to the company's growth in the Diagnosis & Treatment segment.



Another significant innovation was the expansion of Philips' strategic collaboration with Amazon Web Services (AWS). This partnership has enabled Philips to offer an integrated diagnostics portfolio in the cloud, including AI advanced visualization solutions that unify diagnostic workflows, improve access to critical insights, and drive better outcomes across clinical specialties. This collaboration has not only enhanced Philips' offerings in the Connected Care segment but has also expanded the company's reach to a broader range of healthcare providers and patients.

Philips' collaboration with Mayo Clinic using proprietary AI technologies to target breakthroughs in ease-of-use and efficiency for high-quality diagnostic MRI has also contributed to the company's growth. This partnership, along with others with Hôpital Fondation Rothschild in Paris and Erasmus Medical Center in Rotterdam, has allowed Philips to advance minimally invasive procedures and enroll patients in clinical trials, further solidifying its position as a leader in healthcare technology and innovation.



Philips' value creation plan, simplified operating model, and focus on execution excellence played a significant role in achieving the 1%-3% growth in 2025 comparable sales. The company's CEO, Roy Jakobs, emphasized the importance of these factors in driving improvements in profitability, cash flow, order intake, and sales growth. By enhancing execution and focusing on these areas, Philips was able to deliver better care for more people and maintain a strong balance sheet, allowing it to offer shareholders the option to receive the dividend in shares or cash.

In conclusion, Philips' 1%-3% growth in 2025 comparable sales, despite challenges in the Chinese market, can be attributed to its strategic focus on healthcare technology and innovation, as well as its value creation plan, simplified operating model, and focus on execution excellence. The company's commitment to enhancing patient safety, improving clinical workflows, and transforming supply chain management has led to the development of innovative products and solutions that cater to the evolving needs of both consumers and healthcare professionals. As Philips continues to invest in research and development and expand its strategic collaborations, it is well-positioned to maintain its competitive edge in the market and drive future growth.