Phil hasn't been on tour in more than 10 years, but had made a triumphant return to the London stage at his Not Dead Yet tour.
The music icon had to use a walking stick to make his entrance, and stayed seated for the entire gig after major back surgery in 2015.
However, his return was not without humour, as he said to his fans: "You're going to miss my dancing. My leg's f*****."
A source said: "Phil's going to be fine. He's disappointed but he will be back on Sunday."
Collins was performing for the first time since reuniting with his Genesis bandmates in 2007.
Although he was unable to play the drums, the star sang his biggest hits and played the piano for the crowd, belting out classics like Sussudio for the first time in years.
His 16-year-old son Nic took over on the drums, joining his father for the gig.
The star, who will still play the Barclaycard-presented British Summer Time Hyde Park on June 30, talked about his emergency surgery in an interview with Rolling Stone in 2015, admitting doctors "had to take my back apart."
Collins revealed that he woke up one morning and couldn't move his right foot. "I had an MRI and my back and hips were just shot," he told the magazine. "The doctor had to go in there, work on the sciatic nerve and take my back apart and unscramble the mess."
The drummer and singer has a history with back problems. The 2007 Genesis reunion tour left him with a dislocated vertebra in his neck that caused nerve damage in his hands, leaving him unable to play the drums. However, he has since been told he should be able to return to the kit.
"After this surgery, though, the doctor said to me that my vital signs were all there. He said to me, 'If you want to play drums again, all you have to do is practice'," he explained.
The singer explained that he was keen for his younger children, Nic and Matt to see him doing what he does best and return to the stage.
Collins' son Nicholas has become a drummer, as did his eldest son Simon, and the teenager is set to play alongside his father throughout the European tour.
Speaking at a press conference last year at the Royal Albert Hall to announce his Not Dead Yet: Live 2017 Tour, Phil gushed: "Nicholas, who is 15, is a fantastic drummer, my oldest son Simon is too but he has his own career and very firm views about what he wants to do.
"Nicholas is in the learning stage. We did three shows in Europe and he played and all the band were very impressed. He'll go out with me and he'll be 16."
Phil had come out of retirement after 10 years to announce his next run of gigs, including what was meant to be a five-night residency at London's Royal Albert Hall.
He will hopefully soon then head to Cologne, Germany, and Paris, France, for two dates apiece.
Talking about his decision to get back on the stage, he says: "I thought I would retire quietly.
"But thanks to the fans, my family and support from some extraordinary artists I have rediscovered my passion for music and performing. It's time to do it all again and I'm excited. It just feels right."
