Shares of medical equipment company Koninklijke Philips (PHG) shares are dropping Tuesday after the Dutch conglomerate said it had cut its target profit margin due to tariffs.

The company, which announced the new guidance as it posted better-than-expected quarterly sales, said it was reducing its full-year adjusted earnings before interest, taxes, and amortizat𒈔ion (EBI🍎TA) margin target. Its first-quarter adjusted EBITA margin had fallen 80 澳洲幸运5开奖号码历史查询:basis points year-over-year to 8.6%.

“Philips’ outlook for full year 2025 is updated to include the assumed impact of currently announced tariffs,” 🔯the company said, citing an “uncertain macro environment.”

“This includes current bilateral US-China and rest of world tariffs, the resumption of the paused US tariffs on July 9 and excludes potential wider economic impact," the company said. It kept its comparable sales growth forecast unchanged at between 1% and 3%.

The company 🙈said it projects its full-year adjus🐓ted EBITA margin range to be 10.8%-11.3%, including an estimated net tariff impact of 250-300 million euros after  “substantial tariff mitigations.” That amounts to a 100 bps reduction versus the previous forecast.

The lowered guidance comes as the company posted first-quarter sales that beat analysts’ estimates. The company posted revenue of 4.1 billion euros versus a 4 billion euros cons𒆙ensus forecast from analysts polled by Visible Alph🐻a.

The company's shares are down a bit more than 2% this year.