Dutch health technology company Philips reported a second-quarter net profit of 386 million euros on July 28, 2026.
The result was boosted by a 186 million euro refund from mistakenly paid United States import tariffs.
>>> BBC Launches Farmwatch with Simultaneous Radio Drama Broadcast
The company's quarterly revenue rose 4% year-over-year to 4.4 billion euros. This beat analysts' core profit margin expectations.
The windfall stems from a US Supreme Court ruling in February.
The ruling invalidated import tariffs levied on dozens of countries last year, allowing affected companies to submit reimbursement claims.
Chief Executive Officer Roy Jakobs explained that the company moved quickly to claim the funds.
"We started the procedure as soon as we could, which is why we are also among the first to have received the money back," said Jakobs.
While Philips received the bulk of the refunded sum, the US introduced new tariffs last week.
Jakobs described this as part of a new reality with little likelihood of being overturned.
Market Impact and China Headwinds
US-listed shares of Philips fell 4.4% to $25.02 on Monday.
Traders anticipated a 3% to 5% drop for Amsterdam-listed shares due to a 1% decline in comparable order intake and ongoing sales pressure in China.
>>> Shein Posts $99M Loss as U.S. Tariffs Impact Sales Ahead of IPO
Despite strong product demand in Europe that led Philips to raise its full-year profit forecast, order growth was impacted by delays in signing large US contracts.
"That is not a setback, but rather a timing issue," said Jakobs.
