Dutch healthcare technology giant Philips (AMS: PHIA) has projected a 1% to 3% growth in comparable sales for 2025, despite facing headwinds from China and recently announced U.S.-China tariffs.
Q4 Earnings Miss Expectations

Total sales for Q4 2024 stood at €5.04 billion ($5.27 billion), slightly below analysts’ expectations of €5.07 billion.
Adjusted EBITA was €679 million, falling just short of the forecasted €683 million.
The company proposed an annual dividend of €0.85 per share, consistent with its 2023 payout.

China’s Declining Contribution

China sales saw a double-digit decline, leading to a mid- to high-single-digit drop expected for 2025.
CEO Roy Jakobs noted that China’s revenue share had shrunk from over 13% to about 10% over the past decade.
Philips employs over 7,000 people in China, making it a critical market despite ongoing demand slumps.

Impact of U.S.-China Tariffs

The company acknowledged that trade tensions could further pressure profitability and growth.
Tariffs on medical equipment and technology could increase supply chain costs and impact future sales in both regions.

Market Outlook
Despite short-term challenges, Philips aims to sustain modest growth in 2025. The company’s healthcare and medical imaging segments remain key revenue drivers, while its consumer electronics division may continue to face macroeconomic hurdles.
Relevant Financial APIs

Financial Growth API – Track Philips’ earnings trajectory and revenue trends.
Industry P/E Ratio API – Assess how Philips compares to its healthcare industry peers.

Conclusion
While Philips faces growth constraints in China and the impact of tariffs, its steady dividend policy and focus on healthcare technology provide long-term resilience. Investors will closely watch how the company navigates geopolitical risks while maintaining its sales momentum.