Siemens AG

Siemens reported Q3 group orders of EUR 27.9 billion, up 14% year over year, on a book-to-bill of 1.34. Revenue grew 8%, industrial business profit reached a record EUR 3.5 billion, industrial business margin was 17.3%, and EPS pre-PPA was EUR 3.14. Free cash flow came in at EUR 4.1 billion, up more than 40% year over year, and industrial net debt/EBITDA improved to 0.6x. For fiscal 2026, Siemens raised EPS pre-PPA guidance to EUR 11.20 to EUR 11.50 and said it still expects group revenue growth in the upper half of the 6% to 8% range. Smart Infrastructure guidance was raised to 10% to 11% comparable revenue growth and 18.5% to 19.5% margin; Digital Industries reaffirmed 7% to 10% revenue growth and 17% to 19% margin; Mobility reaffirmed 5% to 7% revenue growth and 8% to 10% margin.

Roland Busch framed the quarter as another record performance despite a volatile geopolitical backdrop, emphasizing that Siemens is executing its ONE Tech strategy and sharpening its positioning as a trusted technology partner for the AI age. He highlighted industrial AI, data center infrastructure, and software as key growth engines, and pointed to strong demand in China, semiconductor, and AI-related markets. He also stressed that Siemens is investing organically and through bolt-on M&A while advancing the plan to deconsolidate Siemens Healthineers.

Veronika Bienert focused on the financial quality of the quarter: DI orders were EUR 4.9 billion with revenue up 10% and margin at 18.7%, including 70 basis points of Altair and Dotmatics integration costs; SI orders were EUR 8 billion, revenue up 13%, and margin 20% with a net 50 basis point tariff-related effect; Mobility orders were EUR 7.6 billion, revenue up 6%, and margin 8.6%. She emphasized strong cash generation, including nearly EUR 1.5 billion of free cash flow at DI and more than EUR 4.1 billion at group level, and said Siemens is on track for a double-digit free cash flow return on revenue for the full year. She also noted the new share buyback program of up to EUR 6 billion over up to 5 years, with EUR 400 million executed in the first month.

Analysts pressed on whether China automation growth was slowing, supply-chain constraints, software monetization in an AI world, SI margin sustainability, and whether backlog can be converted into faster 2027 growth. Management said China saw a slight June slowdown but July order trends improved, with no sign of a broader deterioration; they also said supply constraints exist but are not alarming and that the economic equation remains positive. On software, Roland Busch said Siemens is not charging tokens today, still mainly uses license and SaaS models, and is already seeing stronger demand and higher SaaS growth; on SI, Veronika Bienert said capacity is being ramped modularly and execution on the backlog remains manageable.