Interim report
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Quarterly report Q3 2026 Philips delivers strong order intake growth, comparable sales growth and strong margin expansion in Q3; 2026 outlook reiterated Amsterdam, November 3, 2026 Q3 2026 Group performance • Comparable order intake increased by 8% , driven by strong Diagnosis & Treatment • Group sales of EUR 4.4 billion, reflecting 3% comparable sales growth • Income from operations of EUR 165 million • Adjusted EBITA margin increased 70 basis points to 13.0% , with expansion across all business segments • Operating cash flow of EUR 544 million; free cash flow of EUR 384 million • Respironics reached agreement in principle with the US Department of Justice • Philips reiterates its full-year 2026 outlook Roy Jakobs, CEO of Royal Philips: “We delivered an excellent 8% comparable order intake , led by broad-based order momentum in Diagnosis & Treatment, and 3% comparable sales growth in the third quarter, led by Personal Health and Connected Care. Our innovations and productivity measures drove continued margin expansion across all business segments. We are executing our plan to accelerate profitable growth, with strong customer demand for our latest AI-enabled innovations, including our new CT platforms Verida and Rembra, our latest ultrasound system Alturion, and our HealthSuite Imaging cloud solution. These innovations demonstrate how our platforms bring together hardware, software, data and AI to create greater value for customers. We look forward to showcasing our next innovations at RSNA later this month. We continue to make progress in resolving the consequences of the Sleep & Respiratory Care recall. The Respironics agreement in principle with the US Department of Justice marks an important step in this process. Our year-to-date results, together with our strong order book, give us confidence in delivering our full-year outlook and achieving our medium-term ambitions. As we move forward in collaboration with customers, our hardworking teams around the world are focused on putting quality at the heart of our operations as we deliver better care for more people.” Group and segment performance Comparable order intake grew 8%, driven by strong growth in Diagnosis & Treatment. Comparable sales increased by 3% , driven by Personal Health and Connected Care. Adjusted EBITA margin increased 70 basis points to 13.0%, mainly driven by higher sales, higher gross margin and productivity measures, partly offset by cost inflation. Net cash flows from operating activities increased to EUR 544 million, mainly driven by higher cash earnings and lower working capital outflows. Free cash flow increased to EUR 384 million. Diagnosis & Treatment comparable sales growth was flat. Growth in Image Guided Therapy was offset by a decline in Precision Diagnosis, mainly due to phasing of Ultrasound sales and lower sales in China as previously communicated at Q2. Adjusted EBITA margin increased 50 basis points to 12.3%, mainly driven by gross margin from innovation and productivity measures, partly offset by cost inflation. Connected Care comparable sales increased by 5%, driven by growth in all businesses. Adjusted EBITA margin increased 190 basis points to 13.3%, mainly driven by higher sales, higher gross margin, and productivity measures, partly offset by cost inflation. Personal Health comparable sales increased by 8%. Adjusted EBITA margin increased 60 basis points to 17.7%, mainly driven by higher sales and productivity measures, partly offset by advertising and promotion spend. Quarterly Report 2026 - Q3 1
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Innovation highlights • Philips is accelerating innovation in image-guided therapy. In the Netherlands, Philips is investing EUR 50 million in AI, robotics and advanced imaging, alongside over EUR 100 million from the Dutch government and a further EUR 150 million in private financing by Invest-NL and institutional investors, including pension funds. In the US, an ARPA-H award of up to USD 34 million will support AI-enabled robotic stroke care on the Azurion platform. • The Philips-coordinated European COMBINE-CT project advanced into clinical validation, launching five clinical studies to evaluate an integrated care pathway enabled by AI-powered CT and Spectral CT imaging solutions. • Philips extended its monitoring partnership with one of the largest US health systems through 2034. The national agreement covers equipment and services, expands the use of Philips’ Capsule platform, and supports future technology needs. • Ontario Health in Canada selected the Philips Enterprise Imaging Vendor Neutral Archive to modernize province-wide imaging infrastructure and connect patient information across care settings. This Vendor Neutral Archive will support the sharing of more than 20 million imaging studies annually across more than 150 hospitals and 50 imaging clinics, helping enable a holistic patient view and more timely access to care. • Philips is supporting major healthcare programs in Latin America, including the modernization of 50 public hospitals in Venezuela, and an expanded partnership with Mexico’s largest public healthcare institution, IMSS. The projects bring advanced imaging, image-guided therapy and monitoring technologies to more patients, expanding access to diagnostic, cardiac, neurological and stroke care. • Philips signed a long-term strategic partnership with Asia Medical Group to advance integrated cardiovascular care in China. The partnership will focus on clinical care, training, research and international collaboration, combining Philips’ diagnostic imaging and image-guided therapy capabilities with Asia Medical Group’s cardiovascular expertise. • Personal Health launched innovations across oral care, beauty and mother and child care. These include the AI-powered Sonicare DiamondClean 9900 Prestige, the first at-home IPL with real-time guidance Lumea 9900 Pro, and Philips Avent’s first fully wearable Natural Care breast pump, bringing more personalized and premium solutions to consumers. Productivity Disciplined cost management and productivity initiatives delivered EUR 170 million in net savings in the quarter and EUR 427 million year-to-date. The company remains on track to deliver EUR 1.5 billion in savings under its 2026-2028 productivity program. Progress on Respironics-related legal proceedings Philips Respironics reached an agreement in principle with the US Department of Justice (DOJ) to resolve the previously disclosed criminal and civil investigations related to the Respironics recall. As a result, Philips recorded a provision of EUR 288 million in the third quarter of 2026. The settlement is subject to finalization of the relevant documentation; payment is expected in the first quarter of 2027. Also in the third quarter, the Enterprise Chamber of the Amsterdam Court of Appeal denied requests from certain investors for an investigation into the affairs of Philips in connection with the Respironics recall. Outlook Philips reiterates its full-year 2026 outlook: • Comparable sales growth: 3%-4.5% • Adjusted EBITA margin: 13.5%-14.0%, including a US tariff refund benefit of approximately 1% • Free cash flow: EUR 1.5-1.7 billion, including a net US tariff refund benefit of approximately EUR 200 million Within the context of an uncertain macro-environment, Philips' 2026 outlook includes currently known tariffs and assumes payment of the US Department of Justice settlement in the first quarter of 2027. The outlook excludes other ongoing Philips Respironics-related proceedings, including the investigation by the US State Attorneys General. Capital allocation In the third quarter, Philips issued EUR 650 million fixed rate notes due 2034 (the “Notes”) under its European Medium Term Note program. The Notes are the healthcare industry's first EU Green Bond under the new European Green Bond Standard and were 2.7 times oversubscribed, reflecting strong investor demand. An amount equivalent to the gross proceeds will be used to finance taxonomy-aligned economic activities as referred to in the Philips European Green Bond Factsheet, supporting Philips in delivering on its 2030 Impact Ambitions. See here for more information on Philips' current debt structure. Further information: conference call, video webcast and website Roy Jakobs, CEO, and Charlotte Hanneman, CFO, will host a conference call for investors and analysts at 10:00 am CET on November 3, 2026, to discuss the results. A live webcast will be available on the Philips Investor Relations webpage and can be accessed here. A replay and related materials, including additional information on the outlook and forward-looking statements, will be available on the Philips Investor Relations webpage. Quarterly Report 2026 - Q3 2
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Third quarter highlights Key data in millions of EUR unless otherwise stated* Q3 2026 Q3 2025 Sales 4,393 4,302 Nominal sales growth 2% (2%) Comparable sales growth ¹ 3% 3% Comparable order intake ² 8% 8% Income from operations 165 330 as a % of sales 4% 8% Financial income (expenses), net (42) (57) Results of associates (1) 2 Income tax (expense) benefit (92) (87) Income from continuing operations 30 188 Discontinued operations, net of income taxes (2) (1) Net income 28 187 Earnings per common share (EPS) Income from continuing operations attributable to shareholders ³ (in EUR) - diluted 0.03 0.19 Adjusted income from continuing operations attributable to shareholders ³ (in EUR) - diluted ¹ 0.40 0.36 Net income attributable to shareholders ³ (in EUR) - diluted 0.03 0.19 EBITA ¹ 216 409 as a % of sales 4.9% 9.5% Adjusted EBITA ¹ 569 531 as a % of sales 13.0% 12.3% Adjusted EBITDA ¹ 772 738 as a % of sales 17.6% 17.2% 1 Non-IFRS financial measure. Refer to Reconciliation of non-IFRS information 2 Comparable order intake is presented when discussing the Philips Group's performance. For the definition of this measure, refer to chapter Further information, section Other Key Performance Indicators, of the Annual Report 2025. 3 Shareholders refers to shareholders of Koninklijke Philips N.V. • Comparable sales increased by 3% , mainly driven by mid-single-digit growth in Connected Care and high-single-digit growth in Personal Health. In Diagnosis & Treatment, comparable sales growth was flat. • Income from operations decreased by EUR 165 million, mainly due to a EUR 288 million Respironics DOJ settlement provision, partly offset by higher sales and lower cost of sales. • Adjusted EBITA increased to EUR 569 million and the margin improved to 13.0% , mainly driven by higher sales, higher gross margin, and productivity measures, partly offset by cost inflation. • Restructuring, acquisition-related and other items amounted to charges of EUR 353 million, compared with EUR 122 million in Q3 2025. Q3 2026 mainly includes a EUR 288 million Respironics DOJ settlement provision, EUR 34 million of other Respironics-related charges, and EUR 18 million restructuring and acquisition-related charges. • Income tax expense increased by EUR 5 million, mainly due to the tax treatment of the Respironics DOJ settlement provision in Q3 2026. • Net income decreased to EUR 28 million, mainly due to income from operations as explained above, partly offset by lower net financial expenses. Sales per geographic area in millions of EUR unless otherwise stated % change Q3 2026 Q3 2025 nominal comparable ¹ Western Europe 971 933 4% 5% North America 1,864 1,833 2% 1% Other mature geographies 317 320 (1%) 3% Mature geographies 3,152 3,086 2% 3% Growth geographies 1,240 1,217 2% 3% Philips Group 4,393 4,302 2% 3% 1 Non-IFRS financial measure. Refer to Reconciliation of non-IFRS information • Comparable sales in Mature geographies showed 3% growth, mainly driven by Western Europe. • Growth geographies showed 3% comparable sales growth, mainly driven by Central Eastern Europe, the Indian subcontinent and certain markets in the Southeast Asia and Pacific region. Cash and cash equivalents balance in millions of EUR Q3 2026 Q3 2025 Beginning cash balance 1,789 1,822 Free cash flow ¹ 384 172 Net cash flows from operating activities 544 327 Net capital expenditures (160) (155) Other cash flows from investing activities 9 (4) Treasury shares transactions - 7 Changes in debt 603 (42) Dividend paid to shareholders (37) (33) Other cash flow items 2 (11) Ending cash balance 2,751 1,912 1 Non-IFRS financial measure. Refer to Reconciliation of non-IFRS information • Net cash flows from operating activities increased, mainly driven by higher cash earnings and lower working capital outflows. • Changes in debt in Q3 2026 includes the new EUR green bonds issuance amounting to EUR 646 million, partly offset by debt repayments. • Dividend paid to shareholders reflects the payment of the dividend- related withholding tax. • Other cash flow items mainly reflects the foreign currency impact on the cash balance. Quarterly Report 2026 - Q3 3 Amounts may not add up due to rounding.*
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Performance per segment Diagnosis & Treatment Key data in millions of EUR unless otherwise stated* Q3 2026 Q3 2025 Sales 2,085 2,080 Nominal sales growth 0% (3%) Comparable sales growth ¹ 0% 1% Income from operations 219 200 as a % of sales 10.5% 9.6% EBITA ¹ 239 217 as a % of sales 11.5% 10.5% Adjusted EBITA ¹ 255 246 as a % of sales 12.3% 11.8% Adjusted EBITDA ¹ 301 291 as a % of sales 14.5% 14.0% 1 Non-IFRS financial measure. Refer to Reconciliation of non-IFRS information • Comparable sales growth was flat. Mid-single-digit growth in Image Guided Therapy was offset by a mid-single-digit decline in Precision Diagnosis, mainly due to phasing of Ultrasound sales and lower sales in China. • Mature geographies showed low-single-digit growth. This was offset by a mid-single-digit decline in Growth geographies. • Adjusted EBITA increased to EUR 255 million and the margin improved by 50 basis points to 12.3% , mainly driven by gross margin from innovation and productivity measures, partly offset by cost inflation. • Restructuring, acquisition-related and other items amounted to EUR 17 million, compared with EUR 29 million in Q3 2025. Connected Care Key data in millions of EUR unless otherwise stated Q3 2026 Q3 2025 Sales 1,176 1,200 Nominal sales growth (2%) (1%) Comparable sales growth ¹ 5% 5% Income from operations (195) 12 as a % of sales (16.6%) 1.0% EBITA ¹ (170) 67 as a % of sales (14.5%) 5.6% Adjusted EBITA ¹ 157 137 as a % of sales 13.3% 11.4% Adjusted EBITDA ¹ 212 201 as a % of sales 18.0% 16.7% 1 Non-IFRS financial measure. Refer to Reconciliation of non-IFRS information • Comparable sales increased by 5% , driven by growth in all Businesses. • Comparable sales in Mature geographies showed mid-single-digit growth, and Growth geographies recorded double-digit growth. • Adjusted EBITA increased to EUR 157 million and the margin improved by 190 basis points to 13.3% , mainly driven by higher sales, gross margin, favorable mix effects, and productivity measures, partly offset by cost inflation. • Restructuring, acquisition-related and other items amounted to EUR 327 million, compared with charges of EUR 70 million in Q3 2025. Q3 2026 mainly includes a EUR 288 million Respironics DOJ settlement provision, and EUR 34 million of other Respironics-related charges. Personal Health Key data in millions of EUR unless otherwise stated Q3 2026 Q3 2025 Sales 953 883 Nominal sales growth 8% 6% Comparable sales growth ¹ 8% 11% Income from operations 165 143 as a % of sales 17.3% 16.2% EBITA ¹ 169 147 as a % of sales 17.7% 16.6% Adjusted EBITA ¹ 168 151 as a % of sales 17.7% 17.1% Adjusted EBITDA ¹ 195 172 as a % of sales 20.4% 19.4% 1 Non-IFRS financial measure. Refer to Reconciliation of non-IFRS information • Comparable sales increased by 8% , driven by double-digit growth in Growth geographies and mid-single-digit growth in Mature geographies. • Adjusted EBITA increased to EUR 168 million and the margin improved by 60 basis points to 17.7% , mainly driven by higher sales and productivity measures, partly offset by advertising and promotion spend. • Restructuring, acquisition-related and other items amounted to nil in Q3 2026, compared with charges of EUR 4 million in Q3 2025. Other Key data in millions of EUR unless otherwise stated Q3 2026 Q3 2025 Sales 179 140 Income from operations (24) (25) EBITA ¹ (21) (22) Adjusted EBITA ¹ of: (12) (3) IP Royalties 74 73 Innovation (18) (11) Central costs (67) (54) Other - (12) Adjusted EBITDA ¹ 64 74 1 Non-IFRS financial measure. Refer to Reconciliation of non-IFRS information • Segment Other sales increased by EUR 39 million, mainly reflecting activities related to a divestment, which is excluded from comparable sales growth. • Adjusted EBITA decreased by EUR 9 million, mainly due to phasing in central costs. • Restructuring, acquisition-related and other items amounted to charges of EUR 9 million, compared with EUR 19 million in Q3 2025. Quarterly Report 2026 - Q3 4 Amounts may not add up due to rounding.*
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Forward-looking statements and other information Forward-looking statements This document and the related oral presentation, including responses to questions following the presentation, contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. Examples of forward-looking statements include statements made about our strategy, estimates of sales growth, future Adjusted EBITA*, future restructuring and acquisition-related charges and other costs, future developments in Philips’ organic business and the completion of acquisitions and divestments. Forward- looking statements can be identified generally as those containing words such as “anticipates”, “assumes”, “believes”, “estimates”, “expects”, “should”, “will”, “will likely result”, “forecast”, “outlook”, “projects”, “may” or similar expressions. By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these statements. These factors include, but are not limited to, macro-economic and geopolitical changes – including the war in Ukraine and ongoing tensions in the Middle East – as well as measures such as enacted and proposed tariffs and trade actions introduced in response to rising global tensions; Philips’ ability to keep pace with the changing health technology environment; Philips’ ability to gain leadership in artificial intelligence and health informatics in response to developments in the health technology industry; integration of acquisitions and their delivery on business plans and value creation expectations; ability to meet expectations with respect to ESG-related matters; securing and maintaining Philips’ intellectual property rights, and unauthorized use of third-party intellectual property rights; failure of products and services to meet quality or security standards, adversely affecting patient safety and customer operations; the resilience of our supply chain; challenges in simplifying our organization and our ways of working; attracting and retaining personnel; breach of cybersecurity; challenges in driving operational excellence and speed in bringing innovations to market; treasury and financing risks; tax risks; reliability of internal controls; compliance with regulations and standards involving quality, product safety, (cyber) security and artificial intelligence; and compliance with business conduct rules and regulations including privacy, existing and upcoming ESG disclosure and due diligence requirements. As a result, Philips’ actual future results may differ materially from the plans, goals and expectations set forth in such forward-looking statements. For a discussion of factors that could cause future results to differ from such forward-looking statements, see also the Further information chapter included in the Annual Report 2025. Third-party market share data Statements regarding market share contained in this document, including those regarding Philips’ competitive position, are based on outside sources such as specialized research institutes, as well as industry and dealer panels, in combination with management estimates. Where information is not yet available to Philips, market share statements may also be based on estimates and projections prepared by management and/or based on outside sources of information. Management’s estimates of rankings are based on order intake or sales, depending on the business. Market Abuse Regulation This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation. Use of non-IFRS information In presenting and discussing the Philips Group’s financial position, operating results and cash flows, management uses certain non-IFRS financial measures. These non-IFRS financial measures should not be viewed in isolation as alternatives to the equivalent IFRS measure and should be used in conjunction with the most directly comparable IFRS measures. Non-IFRS financial measures do not have standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. A reconciliation of these non-IFRS measures to the most directly comparable IFRS measures is contained in this document. Further information on non-IFRS measures can be found in the Annual Report 2025. Presentation All amounts are in millions of euros unless otherwise stated. Due to rounding, amounts may not add up precisely to totals provided. All reported data is unaudited. Financial reporting is in accordance with the accounting policies as stated in the Annual Report 2025. Certain prior- year balances have been reclassified to conform to the current period presentation. * Non-IFRS financial measure. Refer to the Reconciliation of non-IFRS information Quarterly Report 2026 - Q3 5
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Condensed consolidated statements of income In millions of EUR unless otherwise stated* Q3 January to September 2026 2025 2026 2025 Sales 4,393 4,302 12,658 12,736 Cost of sales (2,353) (2,392) (6,702) (6,966) Gross margin 2,040 1,911 5,956 5,770 Selling expenses (1,016) (1,024) (3,077) (3,195) General and administrative expenses (158) (154) (490) (470) Research and development expenses (410) (414) (1,288) (1,273) Other business income 2 21 233 75 Other business expenses (293) (10) (318) (23) Income from operations 165 330 1,015 884 Financial income 42 21 106 75 Financial expenses (84) (78) (257) (238) Results of associates (1) 2 (6) (6) Income before taxes 122 275 858 716 Income tax (expense) benefit (92) (87) (296) (208) Income from continuing operations 30 188 562 508 Discontinued operations, net of income taxes (2) (1) (2) (8) Net income 28 187 560 499 Attribution of net income Net income attributable to shareholders ¹ 27 184 562 500 Net income attributable to non-controlling interests 1 3 (2) (1) 1 Shareholders refers to shareholders of Koninklijke Philips N.V. Philips Group Earnings per common share attributable to shareholders of Koninklijke Philips N.V. Q3 January to September 2026 2025 2026 2025 Weighted average number of common shares outstanding (after deduction of treasury shares) during the period (in thousands): Basic 977,553 950,790 961,566 947,264 Diluted 989,899 963,844 976,687 960,389 Basic earnings per common share attributable to shareholders of Koninklijke Philips N.V (in EUR) Income from continuing operations 0.03 0.19 0.59 0.54 Income from discontinued operations - - - (0.01) Net income 0.03 0.19 0.58 0.53 Diluted earnings per common share attributable to shareholders of Koninklijke Philips N.V. (in EUR) Income from continuing operations 0.03 0.19 0.58 0.53 Income from discontinued operations - - - (0.01) Net income 0.03 0.19 0.58 0.52 Quarterly Report 2026 - Q3 6 Amounts may not add up due to rounding.*
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Condensed consolidated statements of comprehensive income in millions of EUR* Q3 January to September 2026 2025 2026 2025 Net income for the period 28 187 560 499 Pensions and other post-employment plans: Remeasurement, before tax - - 1 1 Income tax effect on remeasurements 1 (1) 4 2 Financial assets fair value through OCI: Net current-period change, before tax (7) (3) (19) (28) Income tax effect on net current-period change 3 - 4 4 Total of items that will not be reclassified to Income statement (3) (3) (11) (21) Currency translation differences: Net current-period change, before tax 94 (41) 468 (1,627) Reclassification adjustment for (gain) loss realized - (13) 8 (13) Income tax effect on net current-period change and reclassification - 2 (1) 3 Cash flow hedges: Net current-period change, before tax (23) 8 (17) 45 Reclassification adjustment for (gain) loss realized (11) (3) (45) (5) Income tax effect on net current-period change and reclassification 8 (1) 15 (11) Total of items that are or may be reclassified to Income statement 67 (48) 429 (1,607) Other comprehensive income for the period 64 (51) 419 (1,629) Total comprehensive income for the period 91 136 979 (1,130) Total comprehensive income attributable to: Shareholders of Koninklijke Philips N.V. 91 133 981 (1,125) Non-controlling interests 1 2 (2) (4) Quarterly Report 2026 - Q3 7 Amounts may not add up due to rounding.*
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Condensed consolidated balance sheets in millions of EUR* Non-current assets: Property, plant and equipment 2,204 2,217 Goodwill 9,741 9,271 Intangible assets excluding goodwill 2,538 2,569 Non-current receivables 211 210 Investments in associates 153 148 Other non-current financial assets 723 704 Deferred tax assets 1,829 1,773 Other non-current assets 120 119 Total non-current assets 17,520 17,012 Current assets: Inventories 3,404 2,870 Other current assets 687 529 Current derivative financial assets 50 81 Income tax receivable 49 60 Current receivables 3,567 3,530 Assets classified as held for sale - 67 Cash and cash equivalents 2,751 2,794 Total current assets 10,507 9,932 Total assets 28,027 26,944 Equity: Shareholders’ equity 11,580 10,957 Non-controlling interests 29 32 Group equity 11,609 10,990 Non-current liabilities: Long-term debt 6,985 6,934 Long-term provisions 877 915 Deferred tax liabilities 74 93 Non-current contract liabilities 490 458 Other non-current liabilities 84 47 Total non-current liabilities 8,509 8,446 Current liabilities: Short-term debt 1,154 1,151 Current derivative financial liabilities 64 34 Income tax liabilities 258 174 Accounts payable 2,136 1,927 Accrued liabilities 1,495 1,616 Current contract liabilities 1,635 1,490 Short-term provisions 815 712 Liabilities directly associated with assets held for sale - 9 Other current liabilities 351 395 Total current liabilities 7,909 7,509 Total liabilities 16,418 15,954 Total liabilities and group equity 28,027 26,944 September 30, 2026 December 31, 2025 Quarterly Report 2026 - Q3 8 Amounts may not add up due to rounding.*
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Condensed consolidated statements of cash flows in millions of EUR* Q3 January to September 2026 2025 2026 2025 Cash flows from operating activities: Net income (loss) 28 187 560 499 Results of discontinued operations - net of income tax 2 1 2 8 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation, amortization and impairment of assets 254 303 901 846 Share-based compensation 43 32 124 111 Net loss (gain) on sale of assets 1 (1) (80) (2) Interest income (24) (17) (73) (61) Interest expense on debt, borrowings and other liabilities 77 68 225 200 Results of associates 1 (1) - 7 Income tax expense 92 87 296 208 Decrease (increase) in working capital: (66) (206) (460) (542) Decrease (increase) in receivables and other current assets (13) (24) (89) 190 Decrease (increase) in inventories (201) (102) (540) (470) Increase (decrease) in accounts payable, accrued and other current liabilities 148 (80) 168 (263) Decrease (increase) in non-current receivables and other assets 3 20 (3) (68) Increase (decrease) in other liabilities 22 12 59 4 Increase (decrease) in provisions 261 (66) 31 (1,206) Other items (42) (5) (107) 80 Interest received 21 17 71 60 Interest paid (75) (63) (248) (213) Dividends received from investments in associates 2 2 8 13 Income taxes received/ (paid) (56) (43) (197) (164) Net cash provided by (used for) operating activities 544 327 1,108 (219) Cash flows from investing activities: Net capital expenditures (160) (155) (473) (469) Purchase of intangible assets (26) (23) (80) (92) Expenditures on development assets (61) (67) (189) (198) Capital expenditures on property, plant and equipment (75) (68) (212) (186) Proceeds from sales of property, plant and equipment 2 3 9 7 Net proceeds from (cash used for) derivatives and current financial assets 12 - 9 (71) Purchase of other non-current financial assets (3) (9) (41) (35) Proceeds from other non-current financial assets 7 3 36 42 Purchase of businesses, net of cash acquired (4) 3 (236) 2 Sale of interests in businesses, net of cash disposed of (2) - 130 (9) Net cash provided by (used for) investing activities (150) (158) (576) (541) Cash flows from financing activities: Proceeds from issuance of (payments on) short-term debt (1) (9) (42) 6 Principal payments on short-term portion of long-term debt (57) (55) (910) (296) Proceeds from issuance of long-term debt 661 22 754 1,041 Re-issuance of treasury shares 1 7 15 8 Purchase of treasury shares - - (69) - Dividends paid to shareholders of Koninklijke Philips N.V. (37) (33) (358) (328) Dividends paid to shareholders of non-controlling interests (1) - (2) (2) Net cash provided by (used for) financing activities 566 (68) (610) 429 Net cash provided by (used for) continuing operations 960 100 (79) (330) Net cash provided by (used for) discontinued operations - - - (10) Net cash provided by (used for) continuing and discontinued operations 960 100 (79) (340) Effect of change in exchange rates on cash and cash equivalents 3 (11) 36 (149) Cash and cash equivalents at the beginning of the period 1,789 1,822 2,794 2,401 Cash and cash equivalents at the end of the period 2,751 1,912 2,751 1,912 Quarterly Report 2026 - Q3 9 Amounts may not add up due to rounding.*
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Condensed consolidated statements of changes in equity in millions of EUR* Common shares Capital in excess of par value Cash flow hedges Currency translation differences Treasury shares Share-based compensation Fair value through OCI Retained earnings Total shareholders’ equity Non- controlling interests Group equity Reserves Balance as of December 31, 2024 188 6,755 1 2,014 (411) (102) (90) 3,650 12,006 37 12,043 Net income - - - - - - - 500 500 (1) 499 Other comprehensive income (loss) - - 29 (1,632) - - (25) 3 (1,625) (4) (1,629) Total comprehensive income (loss) - - 29 (1,632) - - (25) 503 (1,125) (4) (1,130) Dividend distributed 5 457 - - - - - (789) (328) (2) (330) Transfer on disposal of equity investments at FVTOCI - - - - - - (2) 2 - - - Forward contracts - - - - - - - (125) (125) - (125) Share-based compensation plans - - - - 99 57 - (33) 124 - 124 Balance as of September 30, 2025 193 7,212 30 382 (312) (45) (116) 3,208 10,552 31 10,583 Balance as of December 31, 2025 193 7,212 33 347 (298) (17) (89) 3,575 10,957 32 10,990 Net income - - - - - - - 562 562 (2) 560 Other comprehensive income (loss) - - (46) 475 - - (16) 5 419 - 419 Total comprehensive income (loss) - - (46) 475 - - (16) 567 981 (2) 979 Dividend distributed 4 453 - - - - - (815) (358) (2) (359) Transfer on disposal of equity investments at FVTOCI - - - - - - 2 (2) - - - Forward contracts - - - - - - - (73) (73) - (73) Share-based compensation plans - - - - 188 (74) - (41) 73 - 73 Balance as of September 30, 2026 197 7,665 (13) 823 (110) (91) (103) 3,212 11,580 29 11,609 Quarterly Report 2026 - Q3 10 Amounts may not add up due to rounding.*
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Reconciliation of non-IFRS information Certain non-IFRS financial measures are presented when discussing the Philips Group’s performance: • Comparable sales growth • Adjusted income from continuing operations attributable to shareholders • Adjusted income from continuing operations attributable to shareholders per common share (in EUR) - diluted (Adjusted EPS) • EBITA • Adjusted EBITA • Adjusted EBITDA • Free cash flow • Net debt : group equity ratio For the definitions of the non-IFRS financial measures listed above, refer to chapter Further information, section Reconciliation of non-IFRS information, of the Annual Report 2025 and to the Forward-looking statements and other information. Comparable order intake is not a financial measure, but is presented when discussing the Philips Group’s performance. Refer to Forward- looking statements and other information. Sales growth composition in % Q3 2026 January to September nominal growth consolidation changes currency effects comparable growth nominal growth consolidation changes currency effects comparable growth 2026 versus 2025 Diagnosis & Treatment 0.2% (0.1%) (0.5%) (0.3%) (1.8%) 0.0% 3.1% 1.3% Connected Care (2.0%) 7.0% (0.1%) 5.0% (6.4%) 5.6% 4.2% 3.4% Personal Health 7.9% 0.0% (0.2%) 7.7% 4.9% 0.0% 3.4% 8.3% Philips Group 2.1% 1.0% (0.3%) 2.7% (0.6%) 0.7% 3.4% 3.5% Adjusted income from continuing operations attributable to shareholders 1 in millions of EUR unless otherwise stated Q3 January to September 2026 2025 2026 2025 Net income 28 187 560 499 Discontinued operations, net of income taxes 2 1 2 8 Income from continuing operations 30 188 562 508 Income from continuing operations attributable to non-controlling interests (1) (3) 2 1 Income from continuing operations attributable to shareholders ¹ 29 185 565 508 Adjustments for: Amortization and impairment of acquired intangible assets 52 79 189 189 Restructuring and acquisition-related charges 18 57 (45) 169 Other items: 335 65 479 182 Respironics DOJ settlement provision 288 - 288 - Respironics consent decree charges 31 20 80 68 Portfolio realignment charges - - 50 - Respironics field-action running costs 3 20 39 91 Quality actions 6 23 16 42 Contract settlement gain - - - (23) Remaining items 7 2 7 4 Net finance expenses (14) (1) (14) 3 Tax impact on adjusting items (24) (42) (75) (126) Adjusted income from continuing operations attributable to shareholders ¹ 395 343 1,098 926 Earnings per common share: Income from continuing operations attributable to shareholders ¹ per common share (in EUR) - diluted 0.03 0.19 0.58 0.53 Adjusted income from continuing operations attributable to shareholders ¹ per common share (in EUR) - diluted 0.40 0.36 1.12 0.96 1 Shareholders refers to shareholders of Koninklijke Philips N.V. Amounts may not add up due to rounding. Quarterly Report 2026 - Q3 11
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Reconciliation of Net income to Adjusted EBITA and Adjusted EBITDA in millions of EUR Philips Group Diagnosis & Treatment Connected Care Personal Health Other Q3 2026 Net income 28 Discontinued operations, net of income taxes 2 Income tax expense (benefit) 92 Results of associates 1 Financial expenses 84 Financial income (42) Income from operations 165 219 (195) 165 (24) Amortization and impairment of acquired intangible assets 52 19 25 3 4 EBITA 216 239 (170) 169 (21) Restructuring and acquisition-related charges 18 11 5 - 3 Other items: 335 5 322 - 7 Respironics DOJ settlement provision 288 - 288 - - Respironics consent decree charges 31 - 31 - - Respironics field-action running costs 3 - 3 - - Quality actions 6 5 - - - Remaining items 7 - - - 7 Adjusted EBITA 569 255 157 168 (12) Depreciation, amortization and impairment of fixed assets and other intangible assets 203 46 55 26 76 Adding back impairment of fixed assets included in Restructuring and acquisition-related charges and Other items - - - - - Adjusted EBITDA 772 301 212 195 64 January to September 2026 Net income 560 Discontinued operations, net of income taxes 2 Income tax expense (benefit) 296 Results of associates 6 Financial expenses 257 Financial income (106) Income from operations 1,015 665 (96) 493 (46) Amortization and impairment of acquired intangible assets 189 58 110 10 11 EBITA 1,204 723 14 503 (35) Restructuring and acquisition-related charges (45) (12) (72) 4 36 Other items: 479 15 458 - 7 Respironics DOJ settlement provision 288 - 288 - - Respironics consent decree charges 80 - 80 - - Portfolio realignment charges 50 - 50 - - Respironics field-action running costs 39 - 39 - - Quality actions 16 15 2 - - Remaining items 7 - - - 7 Adjusted EBITA 1,638 726 399 507 7 Depreciation, amortization and impairment of fixed assets and other intangible assets 712 139 262 68 243 Adding back impairment of fixed assets included in Restructuring and acquisition-related charges and Other items (101) - (101) - - Adjusted EBITDA 2,250 864 560 575 250 Amounts may not add up due to rounding. Quarterly Report 2026 - Q3 12
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Philips Group Diagnosis & Treatment Connected Care Personal Health Other Q3 2025 Net income 187 Discontinued operations, net of income taxes 1 Income tax expense (benefit) 87 Results of associates (2) Financial expenses 78 Financial income (21) Income from operations 330 200 12 143 (25) Amortization and impairment of acquired intangible assets 79 18 55 3 3 EBITA 409 217 67 147 (22) Restructuring and acquisition-related charges 57 6 33 4 13 Other items: 65 22 36 - 7 Respironics consent decree charges 20 - 20 - - Respironics field-action running costs 20 - 20 - - Quality actions 23 22 1 - - Remaining items 2 - (5) - 7 Adjusted EBITA 531 246 137 151 (3) Depreciation, amortization and impairment of fixed assets and other intangible assets 224 45 80 22 77 Adding back impairment of fixed assets included in Restructuring and acquisition-related charges and Other items (17) - (15) (1) - Adjusted EBITDA 738 291 201 172 74 January to September 2025 Net income 499 Discontinued operations, net of income taxes 8 Income tax expense (benefit) 208 Results of associates 6 Financial expenses 238 Financial income (75) Income from operations 884 579 (3) 381 (73) Amortization and impairment of acquired intangible assets 189 56 114 11 9 EBITA 1,074 635 111 392 (65) Restructuring and acquisition-related charges 169 36 66 13 55 Other items: 182 43 132 - 7 Respironics consent decree charges 68 - 68 - - Respironics field-action running costs 91 - 91 - - Quality actions 42 43 (2) - - Contract settlement gain (23) - (23) - - Remaining items 4 - (2) - 7 Adjusted EBITA 1,425 714 309 405 (3) Depreciation, amortization and impairment of fixed assets and other intangible assets 656 138 204 76 239 Adding back impairment of fixed assets included in Restructuring and acquisition-related charges and Other items (26) (1) (16) (9) - Adjusted EBITDA 2,056 852 497 472 235 Amounts may not add up due to rounding. Quarterly Report 2026 - Q3 13
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Composition of free cash flow in millions of EUR Q3 January to September 2026 2025 2026 2025 Net cash flows from operating activities 544 327 1,108 (219) Net capital expenditures (160) (155) (473) (469) Purchase of intangible assets (26) (23) (80) (92) Expenditures on development assets (61) (67) (189) (198) Capital expenditures on property, plant and equipment (75) (68) (212) (186) Proceeds from sales of property, plant and equipment 2 3 9 7 Free cash flow 384 172 635 (688) Composition of net debt to group equity in millions of EUR unless otherwise stated September 30, 2026 December 31, 2025 Long-term debt 6,985 6,934 Short-term debt 1,154 1,151 Total debt 8,139 8,084 Cash and cash equivalents 2,751 2,794 Net debt 5,387 5,290 Shareholders’ equity 11,580 10,957 Non-controlling interests 29 32 Group equity 11,609 10,990 Net debt : group equity ratio 32:68 32:68 Amounts may not add up due to rounding. Quarterly Report 2026 - Q3 14
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Philips statistics Quarterly statistics in millions of EUR unless otherwise stated 2026 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales 3,905 4,360 4,393 4,097 4,338 4,302 5,097 Nominal sales growth (5%) 1% 2% (1%) (3%) (2%) 1% Comparable sales growth ¹ 4% 4% 3% (2%) 1% 3% 7% Comparable order intake ² 6% (1%) 8% 2% 6% 8% 7% Gross margin 1,766 2,150 2,040 1,849 2,011 1,911 2,288 as a % of sales 45% 49% 46% 45% 46% 44% 45% Selling expenses (1,007) (1,053) (1,016) (1,087) (1,084) (1,024) (1,147) as a % of sales (26%) (24%) (23%) (27%) (25%) (24%) (23%) G&A expenses (177) (154) (158) (161) (155) (154) (158) as a % of sales (5%) (4%) (4%) (4%) (4%) (4%) (3%) R&D expenses (394) (484) (410) (457) (402) (414) (427) as a % of sales (10%) (11%) (9%) (11%) (9%) (10%) (8%) Income from operations 241 609 165 154 400 330 540 as a % of sales 6% 14% 4% 4% 9% 8% 11% Net income 146 386 28 72 240 187 397 Income from continuing operations attributable to shareholders ³ per common share (in EUR) - diluted 0.16 0.40 0.03 0.09 0.25 0.19 0.41 Adjusted income from continuing operations attributable to shareholders ³ per common share (in EUR) - diluted ¹ 0.23 0.49 0.40 0.25 0.36 0.36 0.60 EBITA ¹ 292 697 216 211 453 409 591 as a % of sales 7.5% 16.0% 4.9% 5.2% 10.5% 9.5% 11.6% Adjusted EBITA ¹ 353 717 569 354 540 531 770 as a % of sales 9.0% 16.4% 13.0% 8.6% 12.4% 12.3% 15.1% Adjusted EBITDA ¹ 567 910 772 571 747 738 991 as a % of sales 14.5% 20.9% 17.6% 13.9% 17.2% 17.2% 19.4% At the end of period: Number of common shares outstanding (after deduction of treasury shares) in thousands 952,018 977,427 977,614 925,084 950,574 950,979 951,289 Shareholders’ equity per common share in EUR 11.97 11.71 11.85 12.64 10.92 11.10 11.52 Net debt : group equity ratio ¹ 33:67 33:67 32:68 35:65 39:61 38:62 32:68 Philips employees 64,317 63,670 63,909 65,553 65,566 65,284 64,817 1 Non-IFRS financial measure. Refer to the Reconciliation of non-IFRS information 2 Comparable order intake is presented when discussing the Philips Group's performance. For the definition of this measure, refer to chapter Further information, section Other Key Performance Indicators, of the Annual Report 2025. 3 Shareholders refers to shareholders of Koninklijke Philips N.V. Quarterly Report 2026 - Q3 15
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Year-to-date statistics in millions of EUR unless otherwise stated 2026 2025 January- March January-June January- September January- December January- March January-June January- September January- December Sales 3,905 8,265 12,658 4,097 8,434 12,736 17,834 Nominal sales growth (5%) (2%) (1%) (1%) (2%) (2%) (1%) Comparable sales growth ¹ 4% 4% 3% (2%) (1%) 1% 2% Comparable order intake ² 6% 2% 4% 2% 4% 6% 6% Gross margin 1,766 3,916 5,956 1,849 3,859 5,770 8,058 as a % of sales 45% 47% 47% 45% 46% 45% 45% Selling expenses (1,007) (2,060) (3,077) (1,087) (2,171) (3,195) (4,342) as a % of sales (26%) (25%) (24) % (27%) (26%) (25%) (24%) G&A expenses (177) (332) (490) (161) (316) (470) (628) as a % of sales (5%) (4%) (4) % (4%) (4%) (4%) (4%) R&D expenses (394) (878) (1,288) (457) (859) (1,273) (1,700) as a % of sales (10%) (11) % (10) % (11%) (10%) (10%) (10%) Income from operations 241 851 1,015 154 554 884 1,424 as a % of sales 6% 10% 8% 4% 7% 7% 8% Net income 146 532 560 72 312 499 897 Income from continuing operations attributable to shareholders ³ per common share (in EUR) - diluted 0.16 0.55 0.58 0.09 0.34 0.53 0.93 Adjusted income from continuing operations attributable to shareholders ³ per common share (in EUR) - diluted ¹ 0.23 0.73 1.12 0.25 0.61 0.96 1.56 EBITA ¹ 292 988 1,204 211 665 1,074 1,665 as a % of sales 7.5% 12.0% 9.5% 5.2% 7.9% 8.4% 9.3% Adjusted EBITA ¹ 353 1,069 1,638 354 894 1,425 2,195 as a % of sales 9.0% 12.9% 12.9% 8.6% 10.6% 11.2% 12.3% Adjusted EBITDA ¹ 567 1,478 2,250 571 1,317 2,056 3,046 as a % of sales 14.5% 17.9% 17.8% 13.9% 15.6% 16.1% 17.1% 1 Non-IFRS financial measure. Refer to the Reconciliation of non-IFRS information 2 Comparable order intake is presented when discussing the Philips Group's performance. For the definition of this measure, refer to chapter Further information, section Other Key Performance Indicators, of the Annual Report 2025. 3 Shareholders refers to shareholders of Koninklijke Philips N.V. © 2026 Koninklijke Philips N.V. All rights reserved. https://www.philips.com/investorrelations