Philips shares surge 12% amid 'clear step up in sales'; European stocks close down

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• KER-FR
• BARC-GB
• BP.-GB
• AZN-GB
• PHIA-NL

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City of London skyline with 20 Fenchurch Street, affectionately nicknamed the Walkie Talkie as light fades at dusk on 27th November 2025 in London, United Kingdom.

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European stocks finished Tuesday in negative territory amid a flurry of corporate earnings releases.

The pan-European Stoxx 600 ended the session down just below the flatline, reversing earlier gains, with most major bourses and sectors mixed.

Tuesday was a busy day for corporate earnings releases, with some of Europe’s most prominent firms updating investors on their finances.

Among them is Philips, which published its full-year 2025 earnings before the bell on Tuesday morning.

The company posted comparable order intake growth of 6% and returned to profit following a net loss in 2024. It issued fresh guidance for 2026, saying it now expects comparable sales growth to fall in the range of 3% to 4.5%.

Net income for the year rose by 1.6 million euros ($1.9 million), which Philips attributed to higher income from operations, lower income tax charges, and smaller expenses. Separately, the company said Tuesday that it was proposing the reappointment of CEO Roy Jakobs, with the proposal to be submitted for shareholder approval at the firm’s Annual General Meeting on May 8.

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Philips margin forecast offset its cautious sales outlook, CEO says

Squawk Box Europe

Speaking to CNBC’s “Squawk Box Europe” on Tuesday, Jakobs said Philips’ earnings contained “a lot of very good news,” touting the 7% order intake growth, and growth in margins despite tariff headwinds.

“It’s a sequential improvement path,” he said. “We had a very strong order intake for 2025, but actually converting that into sales takes a bit of time. That’s something that has been baked into the guidance, but we’ve stepped up from 2% [sales growth last year] and say we will now do in 2026 3% to 4.5%, so a clear step up in sales.”

Shares of Philips ended 12.2% higher.

London-listed BP finished 6.3% lower after the company said Tuesday it would suspend its share buyback “to accelerate strengthening” of its balance sheet. The oil giant’s full-year net profit for 2025 came in at a weaker-than-expected $7.49 billion.

Also reporting on earnings Tuesday was French luxury giant Kering. The Gucci owner’s shares popped 13% in early trade before ending the day up 10.1%, after the firm’s sales beat expectations and the company said it expected a return to growth in 2026.

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Kering share price

The positive sentiment spilled over into the broader luxury space, benefiting Burberry, which gained 3.1%, Hermes, which closed 2.8% higher, and Italy’s Brunello Cucinelli, which added 1.1%.

Shares of French luxury conglomerate LVMH ended 0.4% higher, reversing earlier losses, while Switzerland’s Richemont gained 2.2%.

Elsewhere, investors continued to monitor the political situation in the U.K., where Prime Minister Keir Starmer’s position remains at risk. Lawmakers are pressuring Starmer to quit following a series of U-turns and renewed controversy over the appointment of Peter Mandelson — whose ties to disgraced financier Jeffrey Epstein have been making headlines — as ambassador to the United States.

Overnight, U.S. stock futures were broadly lower after the Dow Jones Industrial Average closed at a record high. In Asia, stocks rallied, sending Japan’s benchmark Nikkei 225 to a fresh all-time high.

— _CNBC’s Sam Meredith and Elsa Ohlen contributed to this report. _