Philips (Philips (PHG)) shares were moving higher on Wednesday after the healthcare technology company reported a solid first quarter that beat earnings expectations and showed strong order intake, even as the macroeconomic environment remains uncertain.
The company posted adjusted earnings of $0.27 per share, topping the consensus estimate of $0.23. Revenue came in at $4.57 billion (€3.91 billion), slightly below the $4.60 billion analysts were looking for. Comparable sales rose 4%, with growth across all segments, led by Personal Health.
Perhaps the most encouraging number was the 6% increase in comparable order intake, driven by growth in both Diagnosis & Treatment and Connected Care, with particularly strong performance in North America and the International Region. That suggests customers are still placing orders even as the macro environment throws up headwinds.
Segment Performance: Personal Health Shines
Breaking down the segments, Diagnosis & Treatment generated €1.85 billion in sales, with adjusted EBITA margin expanding 30 basis points to 9.8%. The improvement came from higher sales and productivity, partially offset by higher tariffs and cost inflation. Comparable sales in the segment rose 2%, with high single-digit growth in image-guided therapy offsetting a low single-digit decline in precision diagnosis.
Connected Care brought in €1.06 billion in revenue, but its adjusted EBITA margin slipped 60 basis points to 2.9%, hit by tariffs and cost inflation. Comparable sales still managed to grow 3%, thanks to mid-single-digit growth in Monitoring.
Personal Health was the standout, with sales of €818 million and comparable sales growth of 9%. The segment's adjusted EBITA margin improved 60 basis points to 15.8%, driven by higher sales and productivity, though tariffs, advertising spend, and cost inflation provided some offset.
Philips also reaffirmed its 2026 outlook, calling for comparable sales growth of 3% to 4.5%, an adjusted EBITA margin of 12.5% to 13.0%, and free cash flow of €1.3 billion to €1.5 billion.
Technical Picture: Mixed Signals
Despite the positive earnings news, the stock's technical picture is a bit mixed. At $27.04, Philips shares were trading 2.9% below their 20-day simple moving average of $27.80 and 4.4% below the 50-day SMA of $28.24. The MACD is below its signal line, suggesting that upward momentum may be fading unless the stock can reclaim those moving averages.
Key resistance sits at $28.50, which aligns with the 50-day SMA and could be a level where rallies stall. On the downside, support is at $26.50, a level where buyers have stepped in before.
On Wednesday, shares were up 2.72% to $27.17 at the time of publication, according to market data. So the market liked what it saw, but the technicals suggest the stock still has some work to do to convince traders that the uptrend has legs.
