MW Philips lifts profit outlook on tariff mitigation as Stellantis flags $1.7 billion hit from levies

By Steve Goldstein

Shares of health device maker Phillips rallied as much as 14% on Tuesday as the company lifted its earnings guidance despite a hefty hit from tariffs.

Phillips (NL:PHIA) $(PHG)$ said it was increasing its adjusted earnings margin range by a half-point, to a range of 11.3% to 11.8%, despite a cost of some EUR150 million to EUR200 million from tariffs. It previously had seen EUR250 million to EUR300 million drag from tariffs, but now says "substantial mitigation" has helped limit the losses.

Philips still says comparable sales will grow between 1% to 3%, after 1% growth in the second quarter. Comparable order intake improved by 6%.

Stellantis (IT:STLAM) $(STLA)$, which last week gave a profit warning on its second-quarter numbers, restored financial guidance as it flagged a tariff impact of EUR1.5 billion for the year.

The maker of Jeep and Ram trucks and Peugeot cars said it expects 2025 revenue to rise, a low single-digit margin after 0.7% in the first half, and improved free cash flow.

Barclays (UK:BARC) $(BCS)$ meanwhile reported stronger-than-forecast profits in the second quarter, helped by lower impairments and better income than forecast.

Barclays said it expects a modest slowdown to global growth from rising U.S. tariffs and retaliatory measures, though it said domestic demand in advanced economies is resilient.

Barclays expects the U.S. unemployment rate to peak at 4.6%, from 4.4% now, and the U.K. jobless rate to peak at its current level of 4.7%.

-Steve Goldstein

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July 29, 2025 03:46 ET (07:46 GMT)

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