However the outfit also issued a cautious prediction for 2016 which will have many a little worried.
The company, which is trying to flog of its lighting operations to anyone who wants it, forecast “modest” sales growth of around 2 percent this year, and said it expects improvement only in the second half.
Earnings before interest, taxes, and amortization, came in at $913 million, compared with $806 million in the same period a year earlier.
Analysts polled by Thomson Reuters had forecast EBITA of $867 million.
Comparable sales increased by 2 percent to $7.7 billion, Philips said.
CEO Frans van Houten said in a statement that the company expects “modest comparable sales growth” this year.
“Taking into account ongoing macroeconomic headwinds and the phasing of costs and sales, we expect improvements in the year to be back-end loaded,” he said.
The company reported a net loss of $42.36 million for the fourth quarter.