Koninklijke Philips (NYSE: $PHG) reported its quarterly earnings, revealing a revenue of $4.81 billion, a decline of 1.13% year-over-year, which fell short of expectations by $149 million. The company also posted earnings per share (EPS) of $0.35, down 2.78% year-over-year, missing estimates by $0.03. Following the earnings report, Philips' stock experienced a significant drop, plummeting by 16% to 17% amid concerns over reduced full-year guidance, primarily attributed to a collapse in sales in China. CEO Roy Jakobs emphasized the company's commitment to innovation in the U.S., stating that it remains the company's top market, well-positioned to meet growing demand. The lowered sales target reflects a deteriorating demand from Chinese hospitals, contributing to investor unease about the company's future performance.