Philips reported first-quarter sales of 3.91 billion euros ($4.57 billion), down from 4.10 billion euros in the same period last year. The Dutch health-tech company nonetheless outperformed analyst expectations of 3.88 billion euros, providing a positive signal for investors after a challenging period of supply chain disruptions and product recalls that have weighed on the sector.

On a comparable basis, sales grew 4% year over year, driven by strong performance across North America, Western Europe, and its Personal Health segment. Europe saw growth on both nominal and comparable bases—a notable reversal from recent quarters where the company struggled in its home region. The Personal Health division, which includes consumer medical devices, contributed meaningfully to the comparable increase.

Net profit surged to 151 million euros from 76 million euros a year earlier, crushing analyst projections of 66 million euros. The significant profit beat, combined with top-line outperformance, suggests Philips is effectively managing costs while navigating a recovering healthcare equipment market.