Philips Q4 loading weighs on the shares

Research evidence excerpt

Philips Q4 loading weighs on the shares

J P M O R G A N Europe Equity Research

29 July 2026

Philips Neutral

PHG.AS, PHIA NA

Q4 loading weighs on the shares Price (28 Jul 26):€22.19

▲Price Target (Dec-27):€23.50

Prior (Jun-27):€22.60

Q2 overall was OK on an underlying basis (ex the one-off tariff refunds), with soft

D&T margins offset by better PH margins. However, the bar was higher after European Medical Technologies &

Servicesseveral quarters of significant beats and the shares holding up relatively well YTD

vs a soggy sector. Soft orders and commentary on the call around a softer Q3 than David Adlington AC

likely expected leaves another Q4 loaded year which means investors are likely to (44-20) 7134-5828

david.adlington@jpmorgan.com

conclude the high end of the guidance range is off the table, and may be skewed

to the bottom of the range. We update our price target to Dec-27 €23.5 (previously Anchal Verma

(44-20) 3493-6144

Jun-27 €22.6) as we update for the latest sector multiples and roll forward to using anchal.verma@jpmorgan.com

2027 forecasts.

Philip S Omnou

• Order slowdown expected to be temporary. Like SHL last quarter, orders (44-20)philip.omnou@jpmorgan.com3493-5648

(-1%) slowed on the timing of some large orders in CC. D&T order gowth was J.P. Morgan Securities plc

LSD (on a +DD comp). Order growth is expected to return to MSD in Q3.

Specialist Sales contact details:

• Market conditions. US remains strong, with Europe improving. However,

this is offset by China where centralized procurement is expected to have a Marjan Daeipour - Specialist Sales -

European Healthcare

prolonged implementation period that is likely to slow the market.

(44 20) 7134-1329

• Q3 commentary leaves a lot to do in Q4. Q3 revenue growth is expected to marjan.daeipour@jpmorgan.com