Philips shares slump over 6% after Citi flags weaker growth

By Leo Marchandon and Danilo Masoni

MILAN, Dec 4 (Reuters) - Shares of Philips PHG.AS fell over 6% on Thursday, making it the worst performer on Amsterdam's AEX .AEX index, after an analyst note raised concerns about its growth trajectory.

The sharp decline, Philips' largest one-day drop since February, followed remarks made by CEO Roy Jakobs at Citi's Global Healthcare Conference.

In a note summarizing the event, Citi said Philips expected organic sales growth to improve from 2% this year to 2026 but was "unlikely" to meet the 4.5% consensus forecast.

In a follow-up statement, Philips said that it had not issued formal guidance and reaffirmed plans to release its detailed 2026 outlook on February 10. It said it still expects to accelerate toward mid-single-digit growth by 2026 but noted this does not imply doubling growth annually.

According to Citi analysts, the company reiterated its goal to improve margins in 2026 but warned that tariff headwinds next year are expected to almost double.

Philips also pointed to a similar global hospital capital spending environment in 2026 compared with 2025, with strong U.S. demand, solid Europe and international markets and muted conditions in China, Citi analysts added.

In November, Philips reported third-quarter profit above market expectations, helped by measures to mitigate the impact of tariffs and the launch of artificial intelligence tools. Its sales grew 3%.