Siemens AG

Siemens said Group orders were EUR 27.9 billion, up 14% year over year, with book-to-bill at 1.34 and backlog at EUR 132 billion. Revenue grew 8%, Industrial Business profit reached a record EUR 3.5 billion, profit margin was 17.3%, and EPS pre-PPA was EUR 3.14. Free cash flow was EUR 4.1 billion, up more than 40% year over year. On guidance, Siemens raised fiscal 2026 EPS pre-PPA outlook to EUR 11.20-EUR 11.50 and said it expects upper-half group revenue growth of 6% to 8%. Digital Industries confirmed FY26 revenue growth of 7% to 10% and margin of 17% to 19%; for Q4 it expects revenue growth of 5% to 7% and flat sequential margin. Smart Infrastructure raised FY26 revenue growth guidance to 10% to 11% and margin guidance to 18.5% to 19.5%. Mobility confirmed FY26 revenue growth of 5% to 7% and margin of 8% to 10%, with Q4 revenue growth expected at 9% to 11%.

Roland Busch framed the quarter as another record performance despite a volatile geopolitical backdrop, emphasizing execution of the ONE Tech program and Siemens’ positioning in industrial AI. He highlighted broad strength in data centers, semiconductors, electrification, software, and regions, and said Siemens is sharpening its image as a trusted technology partner for the AI age. His tone was confident and forward-looking, but he also acknowledged lumpiness in large orders and the need to keep expanding capacity.

Veronika Bienert focused on the financial execution behind the quarter: DI orders of EUR 4.9 billion, DI revenue up 10%, DI margin at 18.7%, SI orders of EUR 8 billion, SI revenue up 13%, and SI margin at 20% with an operational margin of 19.5% after a 50-basis-point net tariff effect. She also pointed to DI free cash flow of almost EUR 1.5 billion, group free cash flow of more than EUR 4.1 billion, and industrial net debt/EBITDA of 0.6x. On capital allocation, she said Siemens launched a new share buyback program of up to EUR 6 billion over up to 5 years, had executed EUR 400 million in the first month, and confirmed the plan to spin off Siemens Healthineers after receiving binding tax rulings.

Analysts pressed on China automation growth, with management saying June slowed somewhat but July momentum improved, and that Siemens’ China smart products were up 30% year to date versus local value-for-money competitors growing around 40%. Questions also focused on automation margins and supply constraints; management said commodity costs and pricing were being managed through a net positive economic equation and that there was no current alarm on supply-chain shortages like the post-COVID period. On software, management said the SaaS transition is effectively through, margins are improving, and Siemens is starting to think about future monetization models for AI-enabled software, though it is not charging tokens today. Analysts also asked about SI margin durability and capacity for 2027, and management said it is ramping capacity modularly and does not see current execution limits preventing backlog conversion.