Revenue edged down, while profits surged! What exactly did Signify do right?

Latest data! Global lighting giant Signify has released its third-quarter results, with revenue declining but profits surging against the trend.

Amid a challenging industry environment, what exactly did Signify do right?

On October 23, Signify announced its operating performance for the third quarter of 2026. The figures show sales of €1.367 billion, slightly down from the same period last year. Although revenue remains under pressure, profitability has improved markedly. Profit reached €145 million, up 6.1% year-on-year, with the profit margin rising from 9.7% in the same period last year to 10.6%. Net profit stood at €88 million, a significant increase compared to €71 million in the same period last year.

By business segment, professional lighting remains the most stable core, generating €921 million in sales with a robust margin of 12.5%, particularly benefiting from a strong season in agricultural lighting. Consumer lighting performed less well, with sales declining due to retailers’ inventory‑clearing efforts; however, Luminaire products in the Indian market posted growth, and cost reductions helped partially offset overall pressure. Meanwhile, although traditional lighting is shrinking in scale, its profit margin remains high at 21.3%.

Old Hong finds this quarterly report quite insightful, offering an important lesson to domestic lighting companies mired in price wars. Revenue decline indicates a tough macro environment and shrinking demand, yet profit growth shows that Signify did not resort to aggressive volume‑driven strategies. Instead, through stringent pricing controls and cost optimization, it managed to boost its profit margins—exemplifying how efficiency can be achieved through better management. In an era of market saturation, preserving profitability is far more critical than blindly chasing higher revenue.

In addition, Old Hong noted that Signify CEO As Tempelman emphasized during his earnings summary the company’s dual‑portfolio strategy. Simply put, operations are divided into two categories: the HARVEST portfolio, which includes traditional lighting and OEM businesses, focusing on profitability and cash flow; and the BUILD portfolio, encompassing markets like India and smart‑connected solutions, prioritizing R&D investment and growth. This approach of segmenting business lines and pursuing refined operations is worth emulating by many domestic lighting firms still adopting a one‑size‑fits‑all strategy.

We cannot change the broader economic environment, but we can shape our own business strategies. Signify has demonstrated through concrete actions that even in an industry downturn, a focused strategy and meticulous management can deliver profitable results. This may offer deeper insights than merely chasing revenue figures.

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About the author, Hong Bing:

Hong Bing currently serves as Editor-in-Chief of China Light Network and Agricultural Lighting Network—the official websites of the China Lighting Electrical Appliances Association—Executive Dean of Ming Classroom, Executive Vice President of the Beijing Lighting Electrical Appliances Association, Deputy Chairperson of both the Talent Training Committee and the Agricultural Lighting Professional Committee of the China Lighting Electrical Appliances Association, Executive Deputy Chairperson of the Lighting Alumni Association of Fudan University, and a board member of the Ecological Environment Alumni Association at CEIBS. He graduated from the Department of Light Sources and Lighting Engineering at Fudan University in 1991 and earned an MBA from CEIBS in 2003. Over the years, he has worked in R&D, product planning, and marketing at institutions including the China Building Materials Academy, Panasonic, GE, and OSRAM. In 2008, he received Siemens’ Global Top Plus Award and Siemens China’s Outstanding Performance Award, and in 2009 founded China Light Network.

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