Royal Philips shares fell after the Dutch medical-technology company reported a decline in order intake for the second quarter due to delays in some large North America contracts.

Shares in Philips fell as much as 11% in early European morning trade, wiping out the stock's gains since the start of the year.

The company said order intake fell 1% in the second quarter on a comparable basis after some large orders in North America shifted to the third quarter.

Order intake moved back to negative territory after solid trends for six quarters in a row, and this might cap sales growth for the group's diagnosis-and-treatment and connected-care divisions, analysts at Jefferies wrote in a note to clients.

Philips reiterated its full-year guidance for comparable sales growth ranging from 3% to 4.5%, but said its third-quarter result is likely to fall at the lower end of the range.

The company raised its adjusted earnings before interest, taxes and amortization margin outlook by one percentage point to between 13.5% and 14% to reflect U.S. tariff-refund benefits. For the third quarter, Philips expects its adjusted Ebita margin to be lower than a year before, it said.

This means Philips will need margins to improve in the fourth quarter to achieve its full-year target and, together with weak order trends and tougher year-earlier comparisons in the second half, makes its guidance far from safe, analysts at Jefferies said.

The company reported second-quarter sales of 4.36 billion euros ($4.96 billion), up 4% on year on a comparable basis. Adjusted Ebita rose to 717 million euros from 540 million euros, with an increase in its margin to 16.4% from 12.4%.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

July 28, 2026 03:48 ET (07:48 GMT)

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