Amsterdam (Netherlands) (AFP) – Dutch electronics and medical device manufacturer Philips announced Tuesday that it had reached an agreement “in principle” for the recall of sleep apnea devices in the United States.

Published on: 03/11/2026 - 09:43

The group has been facing legal proceedings for years after a recall, initiated in 2021, of DreamStation devices against sleep apnea.

Philips has recalled millions of machines, faced with concerns about the risk of users inhaling small pieces of toxic and potentially carcinogenic noise-canceling foam. Some models could also stop working intermittently.

The Dutch company said during its third-quarter results presentation that it had "reached an agreement in principle with the U.S. Department of Justice (DOJ) to resolve previously announced criminal and civil investigations related to the Respironics product recall."

As a result, Philips has set aside a provision of 288 million euros, payment of which, “subject to the finalization of the necessary documents”, is planned for the first quarter of 2027.

This provision led to a drop in Philips' net profit to 28 million euros in the third quarter, compared to 187 million recorded in the same period in 2025.

Chief executive Roy Jakobs said on a call with reporters that the deal was reached "in the last few days," without elaborating.

“This is undoubtedly an important milestone for us, as it marks a step forward in resolving legal proceedings related to respiratory care and sleep,” he said.

A step well received by investors, Philips shares having gained more than 6% during the first trading on the Amsterdam Stock Exchange, in an AEX index down 0.7%.

Artificial intelligence

Long known for its light bulbs and televisions, the Dutch consumer electronics giant has since refocused its production on medical equipment.

Its quarterly turnover increased to 4.4 billion euros, compared to 4.3 billion last year, while order intake increased by 8%, driven by the “Diagnostics and Treatments” division.

“We had a strong third quarter,” Mr. Jakobs said.

“We are seeing our customers respond favorably to our latest AI-powered innovations,” the CEO added.

In February, Philips posted its first annual profit after three consecutive years of losses at 897 million euros, exceeding analysts' forecasts.

The following quarter, the company obtained a refund of US customs duties amounting to 186 million euros, boosting its net profit to 386 million euros.

“Our year-to-date results, combined with our strong order book, give us confidence in our ability to meet our full-year guidance and realize our medium-term ambitions,” Mr Jakobs said.

The group maintained its annual revenue growth forecasts of between 3 and 4.5%.

© 2026 AFP

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