The key facts

  • Philips reached an agreement 'in principle' with the US Department of Justice over investigations into the DreamStation recall
  • 288 million euros ($322 million) was set aside, with payment expected in Q1 2027
  • Due to the provision, third-quarter profit fell to 28 million euros from 187 million a year earlier

Agreement on the DreamStation recall

Dutch electronics and medical equipment maker Philips announced on Tuesday, November 3, 2026, that it had reached an agreement 'in principle' with the US Department of Justice, intended to settle previously disclosed criminal and civil investigations related to the recall of DreamStation devices used to treat apnea — a disorder in which breathing during sleep repeatedly stops and resumes. The company made the announcement while presenting its third-quarter results, AFP reports.

The essence of the recall and the terms of the deal

Millions of devices were recalled over concerns that users could inhale particles of the sound-dampening foam, which was feared to potentially cause cancer. The issue weighed on the company for years amid a series of crises. Under the agreement in principle, Philips set aside 288 million euros ($322 million) in the third quarter of this year; the payment is expected in the first quarter of 2027. The company stressed that the settlement 'remains subject to finalization of the relevant documentation.'

Impact on results and comments

The provision reduced third-quarter profit to 28 million euros, down from 187 million euros in the same period last year. CEO Roy Jakobs told journalists that the deal was reached 'in the last few days' but declined to give further details while the paperwork is being finalized. 'This is certainly an important milestone for us, as it marks a step forward in resolving the litigation related to sleep and respiratory care,' he said.

Context of the financial figures

Quarterly revenue came to 4.4 billion euros, up from 4.3 billion euros in the third quarter of 2025; the company maintained its full-year sales growth forecast of 3.0–4.5%. In February, Philips reported its first annual profit after three years of losses — 897 million euros — and in the second quarter of this year posted a net profit of 386 million euros, partly thanks to a refund of US customs duties that was later overturned by the US Supreme Court. Jakobs expressed confidence in achieving the annual and medium-term targets, noting a good customer response to new AI-powered products.