Dutch medical technology company Philips has today reported third-quarter profit above market expectations, helped by measures to mitigate the impact of tariffs and the launch of artificial intelligence tools.
Adjusted earnings before interest, tax and amortisation (EBITA) came in at €531m, surpassing the €484m expected by analysts.
Its sales grew 3%, matching analysts expectations at €4.3 billion, driven by a strong performance in North America.
Philips, which makes most of its revenue in the US, flagged a lower-than expected impact from US tariffs.
CEO Roy Jakobs said in a call with reporters that the performance reflected investments in its supply chain to mitigate tariff impacts in the US and China.
"At the same time, we keep advocating that actually every dollar, euro, RMB spent on tariffs is not spent on patients. And actually healthcare is under enough pressure that they don't need additional pressure from tariffs," he added.
Jakobs brushed off concerns regarding Nexperia, saying Philips does not use their chips.
The chipmaker sparked Netherlands-China tensions when the Dutch government seized control in September.
Philips today also reiterated its full year sales and earnings guidance.
Philips is racing to develop AI-powered medical tools in patient monitoring, scanner and imagery, and diagnosis assistance.
From January to September of this year, Philips spent €1.23 billion on R&D.
Jakobs said that all its recent products featured AI and the company develops its own medical-tailored models using patient and customer data.
