Philips Earnings: Beats Expectations and Lifts 2023 Outlook, but Uncertainty Weighs on Shares

Narrow-moat Philips beat company-provided consensus expectations for the second quarter and also raised its financial outlook for the full year. The company achieved a 9% organic growth rate driven by all segments and geographies. The strongest contributor was the diagnostics and treatment division (almost 50% of revenue), which reached 12% organic growth thanks to ultrasound and image-guided therapy devices. In the personal health division, sales grew 3% organically with a 13.4% EBITA margin, up 100 basis points year over year.