Koninklijke Philips N.V. (PHG): Business Model Canvas [Dec-2025 Updated]

You're looking for the real, hard numbers on how Koninklijke Philips N.V. is actually making money now that they've fully pivoted to HealthTech, and honestly, the Q3 2025 results paint a clear picture. As someone who's spent two decades in the trenches analyzing these giants, I can tell you their model hinges on massive scale-improving 1.99 billion lives annually while driving EUR 800 million in productivity savings this year alone. This canvas breaks down exactly how they balance selling complex medical gear, which brought in EUR 4.3 billion in Q3 sales, with their aggressive push for circular revenue, which they aim to hit 25% of total revenue by year-end. Dive in below to see the nine blocks defining their current, focused strategy.

Koninklijke Philips N.V. (PHG) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that let Koninklijke Philips N.V. deliver its value propositions, especially in the shift toward services and digital health. These aren't just vendor agreements; they're strategic alignments that secure market access and technological capability. Honestly, these partnerships are where a lot of the near-term risk and opportunity for the 2025 outlook really sits.

Strategic Alliances with Major US Health Systems for Long-Term EMaaS Contracts

Koninklijke Philips N.V. is locking in recurring revenue through long-term Enterprise Monitoring as a Service (EMaaS) contracts with major US providers. This model shifts capital expenditure for hospitals to operational expenditure, which is a big selling point right now. For instance, in Q3 2025, Koninklijke Philips N.V. signed these long-term EMaaS partnerships with leading California health systems, specifically naming Hoag in Orange County and Rady Children's Hospital in San Diego. Also, they secured long-term monitoring partnerships with integrated delivery networks, including the Rush University System for Health in the Midwest.

The value proposition here isn't just the service; it's the sustainability impact that helps health systems meet their own ESG targets. Take the example from Jackson Health System, where a Life Cycle Assessment showed that moving to Koninklijke Philips N.V.'s next-generation monitoring solutions could cut carbon emissions by 47%, equivalent to 685 tons of CO2e, while saving the system an estimated USD 1.2 million over a 10-year device lifetime. Plus, Koninklijke Philips N.V. is backing its US growth with capital, planning to invest more than $150 million in U.S. manufacturing and R&D, which is expected to create 120 new manufacturing jobs in Reedsville, Pennsylvania, and over 150 jobs in Plymouth, Minnesota. The company already invests $900 million annually in U.S. R&D.

Technology Partnerships for Digital Health Platforms

The push into informatics and AI requires deep integration with hyperscalers. Koninklijke Philips N.V. maintains technology partnerships with major cloud providers like Microsoft and Google Cloud to power its digital health platforms, which is critical for its cloud-based, AI-driven imaging offerings. While specific revenue-sharing agreements aren't public, the market context shows these providers are central to healthcare cloud infrastructure spending, which reached $94 billion globally in Q1 2025.

The focus here is on making data actionable. Koninklijke Philips N.V.'s strategy involves embedding its software and AI directly where clinicians work. This is evident in their expanded collaboration with Cortechs.ai, a specialist firm in quantitative neuroimaging analytics. This partnership integrates Cortechs.ai's NeuroQuant® solutions directly into Koninklijke Philips N.V.'s MR systems via the Smart Reading environment, aiming for a zero-click process that automatically delivers quantitative reports for conditions like Alzheimer's, MS, and brain tumors. This level of deep integration is what drives the efficiency gains they promise to customers.

Key Supplier Relationships for Electronic and Medical Components

Securing the supply chain for advanced medical components is non-negotiable, especially given past global shortages. Historically, Koninklijke Philips N.V. had a significant, though now largely divested, relationship with TSMC, the foundry. At one point, Koninklijke Philips N.V. held a stake valued at approximately $8.5 billion in TSMC shares, stemming from a joint venture that started in 1987. While the company has been executing a phased exit from this shareholding, maintaining a stable supply of advanced semiconductors remains vital for their imaging and monitoring systems.

The current relationships focus on securing critical components for their high-tech products. The success of their productivity program, which targeted EUR 800 million in savings for 2025, relies heavily on cost discipline and supply chain agility.

Partnership with the Ellen MacArthur Foundation for Circular Economy Goals

Koninklijke Philips N.V.'s commitment to the circular economy is a core strategic pillar, formalized through its partnership with the Ellen MacArthur Foundation, which it renewed in 2024. The company set ambitious targets for 2025, aiming to generate 25% of its revenue from circular products, services, and solutions. The latest reported figure for Q3 2025 shows they are ahead of that goal, with circular revenues at 26.6% of sales. Furthermore, a key 2025 goal is to offer a responsible take-back program for 100% of all professional medical equipment sold directly to customers.

The progress is measurable:

• Targeted circular economy revenue for 2025: 25% of sales.
• Reported circular economy revenue in Q3 2025: 26.6%.
• Circular economy revenue in 2023: 20% of sales.
• Goal for new product design by 2025: 100% meet EcoDesign requirements.

Finance: draft 13-week cash view by Friday.

Koninklijke Philips N.V. (PHG) - Canvas Business Model: Key Activities

High-value Research & Development (R&D) in health technology

Koninklijke Philips N.V. research and development expenses for the twelve months ending September 30, 2025, were $1.898B. For the first quarter of 2025, R&D expenses totaled EUR 419 million.

Koninklijke Philips N.V. annual research and development expenses for 2023 were $2.046B.

Developing and integrating AI-powered precision diagnostics

The company launched Verida, the world's first detector-based spectral CT fully powered by AI, at RSNA 2025, with availability in select markets starting in 2026. Philips also launched Transcend Plus for EPIQ CVx and Affiniti CVx, which includes FDA-cleared AI Enhancements in Cardiovascular Ultrasound Systems.

Executing the EUR 800 million productivity savings program for 2025

Koninklijke Philips N.V. is on track to deliver its three-year, EUR 2.5 billion productivity program, which includes EUR 800 million of productivity savings targeted for 2025. The productivity initiatives delivered EUR 147 million in savings during the first quarter of 2025. For the third quarter of 2025, disciplined cost management and robust productivity initiatives delivered savings of EUR 222 million in the quarter.

Global manufacturing and supply chain optimization

The operational performance in the latter half of 2025 showed strong order momentum and sales acceleration.

Metric	Q2 2025 Result	Q3 2025 Result
Comparable Order Intake Growth	6%	8%
Group Sales (Comparable)	EUR 4.3 billion (1% increase)	EUR 4.3 billion (3% increase)
Adjusted EBITA Margin	12.4%	12.3%

Koninklijke Philips N.V. revenue for the twelve months ending September 30, 2025, was $19.082B, a 2.61% increase year-over-year.

Ensuring patient safety and quality control for medical devices

The company continues to put patient safety and quality as its number one priority.

• Q3 2025 costs related to quality actions amounted to EUR 23 million.
• Q3 2025 included EUR 20 million in Respironics field-action running costs.
• Q3 2025 included EUR 20 million of Respironics consent decree charges.
• The company signed Enterprise Monitoring as a Service partnerships with US health systems to enhance patient safety through advanced monitoring.

The full-year 2025 outlook for Adjusted EBITA margin is expected toward the upper end of the 11.3%-11.8% range.

Koninklijke Philips N.V. (PHG) - Canvas Business Model: Key Resources

You're looking at the core assets that power Koninklijke Philips N.V.'s health technology focus. These aren't just line items; they are the engines driving their market position, especially as they continue to simplify operations and focus on profitability.

Extensive portfolio of Intellectual Property (patents and licenses) is a massive moat for Koninklijke Philips N.V. This IP underpins their entire offering across diagnosis and treatment, connected care, and personal health. As of the latest disclosures from early 2025, the scale of this asset base is quite clear.

IP Asset Type	Quantity (as of early 2025)
Patent Rights	50,500
Trademarks	30,500
Design Rights	150,000
Domain Names	3,200

This portfolio is actively managed, evidenced by Koninklijke Philips N.V. topping European Patent Office Medtech filings in 2024, and being included in the Clarivate Top 100 Global Innovators 2025 list for the 12th straight time.

Global workforce of approximately 67,000 employees represents the human capital necessary to maintain and advance their complex medical and consumer health solutions globally. As of the third quarter of 2025, the employee count stood at approximately ~67,000 people. For a more precise snapshot, the total employee count as of September 30, 2025, was reported at 67,823 total employees.

Advanced R&D facilities and clinical expertise are critical for maintaining a competitive edge in health technology. The investment here shows their commitment to future product pipelines. For the twelve months ending September 30, 2025, Koninklijke Philips N.V.'s research and development expenses were reported at $1.898B. To give you a recent quarterly view, R&D expenses in Q1 2025 and Q2 2025 were both reported at EUR 419 million, representing 10% of sales in those periods.

Here's a quick look at the investment scale:

• R&D Expenses (TTM ending Sep 30, 2025): $1.898B
• R&D Expenses (Q1 2025): EUR 419 million
• R&D Expenses (Q2 2025): EUR 419 million
• R&D as a % of Sales (Q1/Q2 2025): 10%

This R&D focus supports innovations like the Azurion Biplane and the AI-based CT 5300 scanner.

Strong, globally recognized brand equity in healthcare and consumer health allows Koninklijke Philips N.V. to command premium pricing and secure partnerships. While specific brand valuation figures for late 2025 aren't always public, their financial scale gives you a sense of the brand's weight. As of September 30, 2025, the company's market capitalization was $25.7B, and their trailing 12-month revenue stood at $19.6B.

Integrated digital health platforms and cloud infrastructure are increasingly vital, especially in the Connected Care segment, which accounts for under 30% of revenue. A key element here is the strategic partnership with Amazon Web Services to jointly enable scalable digital pathology in the cloud, which directly enhances diagnostic capabilities and productivity for their clinical customers.

Koninklijke Philips N.V. (PHG) - Canvas Business Model: Value Propositions

You're looking at the core promises Koninklijke Philips N.V. is making to the market as of late 2025. It's a health technology play, moving beyond just selling boxes to selling outcomes and sustainability, which is key for long-term valuation.

The sheer scale of their social impact claim is a major proposition. Koninklijke Philips N.V. reports 1.99 billion lives improved annually, based on their Q3 2025 metric. That's a massive footprint, showing how deeply embedded their products are in global health systems and consumer lives.

The professional side is heavily focused on pushing the envelope in diagnosis and therapy, largely through artificial intelligence integration. They aren't just selling scanners; they are selling faster, more accurate decision support. Here's a look at some of the concrete numbers supporting that push:

Value Proposition Detail	Metric/Data Point	Context/Segment
AI-Enabled Precision Diagnosis	Automated planning in as little as 30 seconds with SmartPlanning.	Diagnosis & Treatment (MR Innovations)
Image-Guided Therapy Advancement	Scans up to three times faster with images up to 80% sharper via SmartSpeed Precise.	Diagnosis & Treatment (MR Innovations)
Operational Efficiency in Imaging	New Verida spectral CT system integrates AI throughout the entire imaging chain.	Diagnosis & Treatment
Connected Care Sales Growth	Comparable sales grew 5.1% in Q3 2025.	Connected Care Segment
Personal Health Sales Momentum	Comparable sales grew 10.9% in Q3 2025.	Personal Health Segment

Sustainability is clearly baked into the financial story now, not just a side project. The circular economy commitment is quantified by the revenue it generates. For Q3 2025, Koninklijke Philips N.V. achieved 26.6% of its revenue from circular products and solutions. This is a significant step toward their stated goal, and it shows a real shift in their product design and service models.

For hospital operations, the value is in making systems work better together, which translates directly to the bottom line for their customers. They are pushing Enterprise Monitoring as a Service (EMaaS) partnerships to enhance clinical efficiency and patient safety. The overall Group performance in Q3 2025 showed an Adjusted EBITA margin of 12.3% of sales, helped by productivity savings of EUR 222 million in the quarter. That efficiency gain is what helps them deliver on these complex service promises. Honestly, the operational discipline is what underpins the value proposition.

On the consumer side, the focus remains on proactive health management, which is where the Personal Health segment shines. They offer products designed to help people manage their well-being before they need acute care. This segment showed strong momentum, with Q3 2025 comparable sales up 10.9%. The value here is convenience and prevention, supported by a strong brand.

The overall financial context for Q3 2025 was Group sales of EUR 4.3 billion, with a free cash flow of EUR 172 million. This financial stability is what allows Koninklijke Philips N.V. to continue investing in these high-value areas. You should definitely keep an eye on the margin expansion going forward.

• Improving 1.99 billion lives annually (Q3 2025 metric).
• Circular revenue reached 26.6% of Q3 2025 revenue.
• AI innovations aim for faster, sharper imaging results for confident, first-time-right diagnosis.
• Connected Care solutions are being deployed via long-term EMaaS partnerships in major US health systems.
• Personal Health segment drove strong growth with a 10.9% comparable sales increase in Q3 2025.

Finance: draft 13-week cash view by Friday.

Koninklijke Philips N.V. (PHG) - Canvas Business Model: Customer Relationships

You're looking at how Koninklijke Philips N.V. manages its connections with customers across its diverse healthcare and personal wellness portfolio as of late 2025. The approach clearly splits between high-touch, long-term B2B relationships and scalable digital B2C engagement.

Long-term service contracts and managed services (EMaaS) for B2B clients

For major hospital systems, Koninklijke Philips N.V. is locking in recurring revenue through Equipment as a Medical Service (EMaaS) agreements. This shifts the relationship from a one-time sale to a continuous partnership focused on uptime and clinical outcomes. For instance, in the third quarter of 2025, Koninklijke Philips N.V. signed long-term EMaaS partnerships with leading US health systems in California, specifically naming Hoag in Orange County and Rady Children's Hospital in San Diego. These solutions focus on enhancing clinical efficiency and patient safety through advanced monitoring and strengthened cybersecurity.

Dedicated, high-touch direct sales and clinical support for hospitals

The high-value medical equipment business relies heavily on direct, dedicated support. The Connected Care segment, which houses monitoring and informatics systems, saw its comparable sales grow by 5.1% in the third quarter of 2025. This growth reflects the success of deep, long-term engagements. A concrete example of this high-touch, large-scale relationship building is the multi-year agreement Koninklijke Philips N.V. secured with Indonesia's Ministry of Health in Q2 2025. This deal involves delivering nationwide coverage of the Azurion image-guided therapy system, aiming to expand access to cardiac, stroke, and cancer care for over 280 million people across all 38 provinces.

Here's a quick look at the segment performance driving these B2B relationships:

• Comparable sales growth for Connected Care (Q3 2025): 5.1%.
• Diagnosis & Treatment comparable sales (Q3 2025): decreased by 1%.
• Indonesia partnership scope: access for over 280 million people.

Automated, data-driven personalization and CRM for B2C consumers

On the Personal Health side, the relationship is driven by scale and digital interaction. The segment posted strong comparable sales growth of 10.9% in the third quarter of 2025. This indicates that data-driven personalization and CRM efforts are effectively driving consumer adoption. The launch of the Lumea IPL hair removal brand in the US saw an encouraging start with strong consumer interest, suggesting successful targeted marketing and CRM integration for new product rollouts.

Self-service and e-commerce platforms for consumer products

Koninklijke Philips N.V. supports its B2C sales through direct digital channels, allowing for self-service transactions. The performance of these platforms provides direct insight into consumer purchasing behavior. For example, in October 2025, the main e-commerce site, philips.com, generated online sales of $23,233,072. The conversion rate for this period was between 0.50-1.00%, with an Average Order Value (AOV) falling in the $600-625 range. Desktop devices were responsible for the large majority of these transactions.

The regional e-commerce data also shows direct consumer activity, though on a smaller scale for specific markets:

Metric	Online Store	Period/Date	Value
Revenue (GMV)	philips.ro	November 2025	US$14m
Month-over-Month Growth	philips.ro	Oct 2025 to Nov 2025	55-60%
Online Sales	philips.com	October 2025	$23,233,072
Desktop Revenue Share	philips.com	October 2025	60%
Mobile Web Revenue Share	philips.com	October 2025	40%

Overall, the digital channel performance in October 2025 showed that 60% of sales on philips.com were finalized on desktop devices, with 40% coming from mobile web. Defintely, the mix of high-value B2B contracts and direct-to-consumer digital sales defines the current relationship strategy.

Koninklijke Philips N.V. (PHG) - Canvas Business Model: Channels

You're looking at how Koninklijke Philips N.V. gets its health technology and personal care products into the hands of hospitals and consumers as of late 2025. It's a dual approach, mixing high-touch sales for complex gear with broad consumer reach.

Direct Sales Force for complex medical systems and solutions (B2B)

The high-value, complex medical systems rely heavily on a specialized direct sales force engaging healthcare providers. This channel supports the Diagnosis & Treatment and Connected Care segments, which are central to Koninklijke Philips N.V.'s strategy.

Here's a look at the recent segment performance, which is largely driven by this direct engagement:

Segment	Q3 2025 Comparable Sales Growth	Adjusted EBITA Margin
Diagnosis & Treatment	1.3%	11.8% (down 80 bps)
Connected Care	5.1%	11.4% (up 410 bps)

The Diagnosis & Treatment segment recorded last year's revenue of EUR 8.79 billion. Furthermore, Koninklijke Philips N.V. is locking in long-term relationships through service contracts, such as signing Enterprise Monitoring as a Service (EMaaS) partnerships with leading US health systems like Hoag and Rady Children's Hospital in San Diego.

Wholesale distributors and major retail partners for Personal Health products

For the Personal Health division, the reach extends through established wholesale and retail networks, though direct digital sales are growing. This channel moves products like electric toothbrushes and grooming tools.

The Personal Health segment showed strong momentum in Q3 2025:

• Comparable sales growth: 10.9%.
• Adjusted EBITA margin: 17.1%.

Looking at the last twelve months sales breakdown for key Personal Health categories, you see the scale of the retail-driven business:

Personal Health Category	Last Twelve Months Sales
Personal Care	EUR 1.9 billion
Oral Healthcare	EUR 1.2 billion
Mother & Childcare	EUR 0.4 billion

To be fair, success in some retail channels is localized; for instance, a new localized product in China, the On-The-Go Compact Shaver, achieved a top ranking for new product sales from the major online retailer JD.com.

E-commerce platforms and the official Koninklijke Philips N.V. website

The company maintains a direct-to-consumer digital presence, which is a key channel for the Personal Health segment, even as the overall Group sales for Q3 2025 hit EUR 4.3 billion with a 3% comparable sales increase.

Data from October 2025 for the main consumer site, philips.com, shows significant traffic:

Metric (philips.com, Oct 2025)	Value
Online Sales (GMV)	$23,233,072
Sessions	4,392,724
Conversion Rate	0.50-1.00%

Even a regional site like philips.ro reported annual sales of US$109m in 2024, with a projected growth rate of 0-5% for 2025. This digital channel is definitely part of the strategy to reach consumers directly.

Shift to a Digital-First marketing and media strategy for consumer segments

The marketing approach is clearly leaning into digital platforms to drive adoption of personal health innovations. This supports the goal of improving the lives of 2.5 billion people a year by 2030.

Evidence of this digital-first push includes:

• Launching Lumea IPL in the US market.
• Renewing mid-range Sonicare electric toothbrushes in Europe.
• Focusing on AI-powered innovations to enhance reach.

The company is also driving productivity to support these initiatives, expecting EUR 800 million in productivity savings in 2025 alone as part of a larger EUR 2.5 billion program.

Finance: draft 13-week cash view by Friday.

Koninklijke Philips N.V. (PHG) - Canvas Business Model: Customer Segments

You're looking at the customer base for Koninklijke Philips N.V. as of late 2025. The company is firmly focused on health technology, serving professional and consumer markets across more than 100 countries.

The customer segments are served primarily through the Diagnosis & Treatment, Connected Care, and Personal Health divisions. For context, the trailing twelve-month revenue as of September 30, 2025, stood at $19.6B. The Q3 2025 Group sales were EUR 4.3 billion.

B2B Healthcare Providers: Hospitals, clinics, and diagnostic centers globally

This group is the core of the professional side, largely served by the Diagnosis & Treatment segment. These providers use advanced imaging and therapy systems. For example, partnerships are in place with leading US health systems like Hoag in Orange County and Rady Children's Hospital in San Diego for Enterprise Monitoring as a Service (EMaaS) solutions. The segment is a major revenue driver, historically accounting for nearly 50% of the company's revenue.

• Diagnosis & Treatment comparable sales growth (Q3 2025): 1.3%.
• Diagnosis & Treatment Adjusted EBITA margin (Q3 2025): 11.8%.
• Products include Azurion systems for minimally invasive care.

B2C Health-Conscious Consumers: Individuals seeking personal care and home health solutions

This segment is driven by the Personal Health division, focusing on consumer well-being through products like oral care and personal grooming devices. Consumers are increasingly looking for tailored experiences and better self-care technology. This segment posted strong growth in the third quarter of 2025.

Here's a look at the scale of the Personal Health sub-segments based on recent last twelve months data:

Personal Health Sub-Segment	Recent Sales Amount	Market Position Example
Personal Care (e.g., grooming)	EUR 1.9 billion	#1 Electric shaving & grooming
Oral Healthcare (e.g., toothbrushes)	EUR 1.2 billion	#2 Globally, #1 US Rechargeable power toothbrush

• Personal Health comparable sales growth (Q3 2025): 10.9%.
• Personal Health Adjusted EBITA margin (Q3 2025): 17.1%.
• The Lumea IPL hair removal brand saw an encouraging start following its US launch.

Government Health Institutions and large-scale public health programs

Koninklijke Philips N.V. engages directly with governmental bodies for large-scale health initiatives, which often involve providing access to advanced medical technology across a region or nation. This is a key area for expanding the reach of their professional solutions.

• Secured a landmark, nationwide agreement with Indonesia's Ministry of Health in 2025.
• The company serves customers in over 100 countries.

Home Healthcare Users: Patients requiring home respiratory and monitoring devices

These customers are served through the Connected Care segment, which includes the sleep and respiratory care business. This area focuses on monitoring and analytics systems, providing solutions for patients outside the traditional hospital setting. The segment showed solid growth momentum in Q3 2025.

• Connected Care comparable sales growth (Q3 2025): 5.1%.
• Connected Care Adjusted EBITA margin (Q3 2025): 11.4%.
• This segment historically represents under 30% of revenue.

Finance: draft 13-week cash view by Friday.

Koninklijke Philips N.V. (PHG) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Koninklijke Philips N.V.'s operations as of late 2025. This structure is heavily weighted toward innovation and managing complex, regulated manufacturing.

High fixed costs from R&D investment and manufacturing facilities are a bedrock of the cost base, reflecting the capital intensity of medical technology. Research and development expenses for the twelve months ending September 30, 2025, totaled $1.898B. This sustained investment fuels the pipeline for advanced imaging and informatics systems.

The Significant cost of goods sold (COGS) for complex medical equipment forms the largest single cost component. For the twelve months ending September 30, 2025, Koninklijke Philips reported a Cost of Goods Sold of $10.413B. To give you a sense of scale, this compares to trailing twelve-month revenue of $19.6B as of September 30, 2025. The quarterly Cost of Sales for the fiscal quarter ending in June of 2025 was EUR 2.33B.

Cost Metric	Period Ending Sept 30, 2025 (TTM)	Q2 2025 (Quarterly)
Cost of Goods Sold (COGS)	$10.413B	EUR 2.33B
Revenue	$19.6B	EUR 4.34 billion (Q2 Revenue)

External trade dynamics are creating measurable headwinds. The Tariff costs with an estimated full-year 2025 net impact of EUR 150 million to EUR 200 million is the current expectation after substantial mitigation efforts. This is a reduction from the earlier forecast of up to EUR 300 million.

Operating expenses are being actively managed through internal efficiency drives. Koninklijke Philips is on track to deliver EUR 800 million of productivity savings in 2025, which is part of a larger three-year, EUR 2.5 billion productivity program initiated in 2023. In Q1 2025 alone, productivity initiatives delivered EUR 147 million in savings. Disciplined cost management and these productivity initiatives contributed to an Adjusted EBITA margin expansion in Q2 2025.

Finally, you have the specific, non-recurring, and ongoing Costs associated with regulatory compliance and quality remediation, which are significant, especially given the ongoing focus on quality systems. For the third quarter of 2025, these specific charges included:

• EUR 23 million for quality actions.
• EUR 20 million in Respironics field-action running costs.
• EUR 20 million of Respironics consent decree charges.

To put the scale of the legacy issue in context, the Free Cash Flow for Q1 2025 included a EUR 1,025 million payment related to Philips Respironics recall settlements in the US. The FDA issued a Warning Letter in September 2025 following inspections earlier in the year.

Koninklijke Philips N.V. (PHG) - Canvas Business Model: Revenue Streams

You're looking at how Koninklijke Philips N.V. (PHG) brings in its money, which is a mix of selling hardware and locking in recurring income. The main streams flow from selling their health technology devices and then supporting those devices over time. Honestly, the recurring part is what analysts watch closely for stability.

Product Sales revenue is driven by their core segments, which include the big-ticket medical equipment and the consumer-facing personal health items. You can break down the sales focus like this:

• Diagnostic Imaging equipment sales.
• Image-Guided Therapy systems sales.
• Personal Health devices, like oral care and grooming products.

Service Revenue is the glue that keeps the high-value systems running and generates predictable income. This includes things like long-term maintenance contracts, software subscriptions for their informatics and monitoring platforms, and professional services for system integration and clinical workflow optimization. To give you a sense of the current weighting, nearly 50% of the company's revenue comes from the Diagnosis & Treatment segment, with the Connected Care segment bringing in under 30% of revenue, and the remainder from Personal Health.

Here's a look at the performance driving those segment revenues in the third quarter of 2025:

Segment	Q3 2025 Comparable Sales Growth	Adjusted EBITA Margin
Diagnosis & Treatment	+1.3%	11.8%
Connected Care	+5.1%	11.4%
Personal Health	+10.9%	17.1%

The top-line numbers for the period ending late 2025 show solid activity. For the third quarter ending September 30, 2025, Koninklijke Philips N.V. reported total sales of EUR 4.3 billion. Looking at the bigger picture, the annualized revenue (TTM as of September 2025) stood at $19.6 billion. That TTM figure shows the scale of the business over the last twelve months.

Plus, the push toward sustainability is directly tied to revenue generation now. As of the latest reports, Koninklijke Philips N.V. gains 24% of its sales from circular revenues, which reflects their commitment to circular economy models in their product lifecycle management.