RBC Tweaks Philips Forecast After Q2 Results; Sector Perform Maintained

06:34 AM EDT, 07/31/2026 (MT Newswires) -- RBC Capital Markets updated its earnings projections for Koninklijke Philips (PHIA.AS) following the health technology company's second-quarter report. "We reduce our FY 26 adj. EBITA (ex-tariff refund) by 2% post Q2, now sitting at the bottom end of the FY margin guidance range. This reflects the significant Q2 D&T margin miss on disproportionate cost inflation, FX and China mix, combined with Q4-weighted mitigations and a tougher PH comp, leaving a limited buffer, in our view," the research firm said Thursday. Philips reiterated its outlook for full-year 2026, with comparable sales growth of 3% to 4.5% and an adjusted EBITA margin of 13.5% to 14%, including a 1% US tariff refund benefit. Excluding the tariff refund, the group previously guided 12.5% to 13% in adjusted EBITA margin for the year. "While management reiterated confidence in FY delivery, we remain cautious on the magnitude of the Q4 step-up. We forecast +4% CER sales CAGR and c.160bps margin expansion over 2026-28E, and reiterate our EUR25 PT and Sector Perform rating," analysts wrote. Against this backdrop, RBC trimmed its revenue projections for 2026 to 2028, while its adjusted EPS forecasts for the three years were nudged higher.