Royal Philips NV (PHG) stock surged 10.17% in pre-market trading on Tuesday after the Dutch health technology company raised its full-year profit outlook and reported better-than-expected second-quarter results.

The company increased its adjusted EBITA margin forecast for 2025 to a range of 11.3% to 11.8%, up 50 basis points from its previous outlook. This upward revision comes as Philips successfully mitigated the impact of tariffs, which is now estimated to be between €150 million and €200 million, down from the earlier projection of €250 million to €300 million.

Philips' second-quarter performance exceeded analyst expectations, with earnings per share of $0.41 beating the consensus estimate of $0.29. Sales for the quarter reached $4.92 billion, surpassing the projected $4.35 billion. The company also reported a 6% growth in comparable order intake, signaling strengthening fundamentals and momentum in its business. Notably, the Personal Health segment showed robust growth with a 6% increase in comparable sales, offsetting declines in other divisions. CEO Roy Jakobs stated, "We did what we said we would do in the first half of the year and remain on track," emphasizing the company's focus on driving profitable growth and delivering better care for more people.