Amsterdam, Netherlands / Milan, Italy – Shares of Philips (PHG.AS) dropped by over 7% on Thursday, marking their largest single-day decline in nearly 10 months, following comments from the Dutch health technology company that tempered investor expectations for future growth.

The fall comes after Philips’ CEO Roy Jakobs addressed investors at Citi’s Global Healthcare Conference, signaling that organic sales growth is expected to improve in 2026 from roughly 2% projected for 2025, but is unlikely to double. Analysts had previously anticipated growth of 4.5%, according to Citi.

“Management reiterated its goal to improve margins in 2026 but cautioned that tariff headwinds are expected to nearly double next year,” Citi said in a note following the conference.

Market Performance and Investor Concerns

Philips shares fell more than 7.2% by 0942 GMT, making it the leading decliner on the STOXX 600 index and marking the company’s largest one-day drop since February 2025. Including Thursday’s decline, the stock has dropped over 8% for the year.

Despite the sharp drop, Philips reported strong results in its third quarter, with profits exceeding market expectations. The company attributed the performance to proactive measures to mitigate tariff impacts and the launch of artificial intelligence tools. Total sales grew by 3% in the quarter.

Regional and Global Market Outlook

Philips highlighted that the global hospital capital spending environment in 2026 is expected to be largely similar to 2025. Strong demand is projected in the U.S., with solid performance across Europe and international markets, while conditions in China remain muted.

Market observers note that while Philips continues to innovate in health technology and AI-powered solutions, tariff pressures and slower-than-expected sales growth have weighed on investor sentiment.