Key Notes
- Siemens reported €23.68 billion in revenue and record quarterly orders of €34.77 billion.
- Fiscal 2027 guidance calls for 9% to 11% comparable revenue growth and EPS pre PPA of €10.20 to €10.80 excluding Healthineers effects.
- Siemens raised its mid-term growth targets and proposed a €5.50 dividend per share.
Siemens (Xetra: SIE) beat quarterly sales and industrial-profit forecasts as orders reached a record €34.77 billion, supported by demand for trains and electrical equipment used in AI data centers.
The German engineering group raised its mid-term growth targets and forecast comparable revenue growth of 9% to 11% for fiscal 2027. Its fourth-quarter results, released November 12, cover the three months ended September 30.
Orders and Industrial Profit Set Records
The quarter’s main figures were:
- Revenue of €23.68 billion, up 11% as reported and 10% on a comparable basis.
- Orders of €34.77 billion, up 58% from a year earlier.
- Industrial Business profit of €3.90 billion, up 22%, with a margin of 16.8% compared with 15.3% a year earlier.
- Group free cash flow of €5.56 billion, a quarterly record.
Revenue exceeded the €23.39 billion forecast in a company-compiled analyst consensus, while industrial profit topped the €3.71 billion estimate, Reuters reported. Orders were equivalent to 1.47 times quarterly revenue, meaning Siemens took in substantially more new business than it delivered during the period.
Data Centers and Rail Contracts Drive Demand
Smart Infrastructure recorded quarterly highs for orders, revenue and profit. Large contracts from data-center customers, primarily in the United States and Europe, helped drive orders for electrification and electrical products.
Mobility’s order intake reached €10.74 billion. Major wins included a €2.4 billion German high-speed train contract with maintenance and a €1.9 billion share of a suburban-train and service contract, according to the company’s earnings release.
Siemens is also expanding its software business. Digital revenue grew 16% to €10.9 billion over the full fiscal year, and management identified industrial AI as a major source of future growth.
2027 EPS Outlook Reflects Healthineers Spin-Off
Siemens expects fiscal 2027 earnings per share before purchase price allocation accounting, or EPS pre PPA, of €10.20 to €10.80. The forecast excludes effects related to the planned separation of Siemens Healthineers.
Siemens put comparable fiscal 2026 EPS pre PPA, excluding Healthineers, at €9.27. The new range implies growth of about 10% to 17% on that basis.
Under the proposed spin-off, Siemens plans to distribute one Healthineers share for every two Siemens shares held.
Higher Growth Targets and Dividend Proposal
Siemens raised its mid-term targets to 7% to 11% comparable annual revenue growth, from 6% to 9%. It now aims for double-digit EPS pre PPA growth, up from a high single-digit target.
The Managing and Supervisory Boards will ask shareholders to approve a dividend of €5.50 per share for fiscal 2026, compared with €5.35 a year earlier.
