Siemens – Earnings release and financial results Q2 FY 2026: Siemens continues path of profitable growth

• Second-quarter orders climbed 18% on a comparable basis, excluding currency translation and portfolio effects, with double-digit increases in most industrial businesses; comparable revenue increased 6%, driven by Smart Infrastructure and Digital Industries 
• On a nominal basis, orders rose 11% to €24.1 billion, and revenue reached the prior-year level of €19.8 billion, despite substantial negative currency translation effects; the book-to-bill ratio was 1.22 
• Profit Industrial Business was €3.0 billion, with a profit margin of 15.4%; Profit Industrial Business of €3.2 billion in Q2 FY 2025 had benefited from a €0.3 billion gain related to exiting a business at Smart Infrastructure 
• Net income reached €2.2 billion; corresponding basic earnings per share (EPS) were €2.60, and EPS before purchase price allocation accounting (EPS pre PPA) were €2.81 
• Free cash flow from continuing and discontinued operations rose sharply to €1.7 billion

 

 

“We delivered a successful second quarter despite the geopolitical environment, which remains very demanding. Siemens is benefiting from its technological strength and strong positioning in key growth markets. Digital Industries and Smart Infrastructure posted impressive overall performance – clear evidence that we’re on a path of profitable growth,” said Roland Busch, President and Chief Executive Officer of Siemens AG. “With our Eigen Engineering Agent, we’re further expanding our leadership position in industrial AI, and we see AI as a clear growth driver for our hardware, software and services business.”

 

 

“Our operating businesses’ convincing performance and our strong free cash flow prove our resilience. As a result, we’re very well positioned to reach our full-year group targets. At the same time, by announcing our new share-buyback program, we’re enabling our shareholders to participate in our success. In this way, we’re continuing our stringent capital allocation,” said Veronika Bienert, Chief Financial Officer of Siemens AG.

 

 

Siemens

• Double-digit order growth in most industrial businesses included substantial increases at Smart Infrastructure – once again with record-high order intake – and at Mobility; Digital Industries recorded significant growth
• Digital Industries and Smart Infrastructure reported increases in revenue, while Siemens Healthineers and Mobility saw moderate declines
• Currency translation effects took seven percentage points from order growth and six percentage points from revenue development; portfolio transactions had a minimal effect
• Profit Industrial Business: substantial profit increase at Digital Industries; Smart Infrastructure delivered another excellent profit performance, its profit in Q2 FY 2025 had been even higher due to a €0.3 billion gain from exiting a business; Siemens Healthineers and Mobility, which were impacted by tariffs, both posted lower profit year-over-year
• Net income included €0.1 billion from discontinued operations, resulting from the release of provisions
• Industrial Business delivered significantly higher Free cash flow of €2.4 billion, up from €2.1 billion in Q2 FY 2025, driven by improvements across most businesses; outside Industrial Business, higher tax payments had impacted Free cash flow in the prior-year quarter
• As of March 31, 2026, provisions for pensions and similar obligations amounted to €0.7 billion – the same low level as of December 31, 2025
• Return on capital employed (ROCE) declined due primarily to a substantial increase in average capital employed, largely related to the acquisitions of Altair and Dotmatics

 

 

Digital Industries

• Orders and revenue rose in the software business, which won a higher volume year-over-year from larger contracts in the productlifecycle-management and electronic-design-automation software businesses; volume also grew in the automation business, mainly driven by the factory automation business; new volume from recent acquisitions, in particular from Altair and Dotmatics, offset substantial negative currency translation effects
• On a geographic basis, orders and revenue were up in all reporting regions, with the strongest comparable growth coming from the Asia, Australia region
• Profit and profitability rose substantially, despite strong negative currency effects; the software business made the largest contribution to the improvement; profit for the current quarter included €43 million in integration costs related to the acquisitions of Altair and Dotmatics, reducing Digital Industries’ profit margin by 0.9 percentage points

 

 

Smart Infrastructure

• Continued broad-based volume growth despite substantial negative currency translation effects; comparable orders and revenue rose in all three businesses and all reporting regions
• Orders once again reached a quarterly record high, driven primarily by the electrification and the electrical products businesses, including strong growth from several larger contract wins with data center and semiconductor customers, predominantly in the U.S.
• Revenue growth was led by a double-digit increase in the electrification business, which continued to execute strongly on its large order backlog
• Profit and profitability rose in all businesses except the electrical products business, which in Q2 FY 2025 had benefited from a €315 million gain related to exiting the wiring accessories business; Smart Infrastructure maintained its excellent profit performance, successfully offsetting substantial negative currency effects and higher commodity costs year-over-year

 

 

Mobility

• Orders rose due to higher volume from large orders, including a substantial share of a consortium contract for delivery of fully automated trains in Denmark, an order worth €0.4 billion for delivery of dual-mode electric-battery locomotives in France, and an extension of an existing contract worth €0.3 billion for delivery of light rail vehicles in the U.S.
• Revenue came in below the strong prior-year level; development was burdened by project accounting effects from tariffs in the U.S. as well as by delayed call-offs under framework agreements for large rail infrastructure projects
• Profit and profitability declined due mainly to tariff impacts in the U.S.

 

 

Siemens Healthineers

• Volume development strongly influenced by negative currency translation effects; order intake decreased from a high basis of comparison in Q2 FY 2025, which had included a €0.5 billion contract win in Canada; on a comparable basis, revenue growth in the imaging business and the precision therapy business was partly offset by a decline in the diagnostics business; this decrease was due mainly to a structural change in the market environment in China
• Profit was mainly impacted by increased tariffs and, in the imaging and the precision therapy businesses, by negative currency effects

 

 

Siemens Financial Services

• Siemens Financial Services contributed earnings of €95 million; the prior-year quarter had benefited from a €201 million gain from the sale of a stake in an equity investment in India
• Lower results from the debt businesses due to higher expenses for credit risk provisions

 

 

Reconciliation to Consolidated Financial Statements

• Governance benefited from higher Siemens brand fee income and lower governance costs
• Amortization of intangible assets acquired in business combinations rose due primarily to the acquisitions of Altair and Dotmatics
• Financing, eliminations and other items turned positive, driven primarily by a gain of €172 million from the sale of the airport logistics business in the U.S.

 

 

Outlook 

We confirm our outlook for the Siemens Group for fiscal 2026 as provided in our Earnings Release Q1 FY 2026.

For the Siemens Group, we continue to expect comparable revenue growth − net of currency translation and portfolio effects − in the range of 6% to 8% and a book-to-bill ratio above 1 for fiscal 2026.

We continue to anticipate basic earnings per share (EPS) from net income before purchase price allocation accounting (EPS pre PPA) in a range of €10.70 to €11.10 in fiscal 2026.

Digital Industries now expects comparable revenue growth of 7% to 10% (previously 5% to 10%) and a profit margin of 17% to 19% (previously 15% to 19%) for fiscal 2026.

Smart Infrastructure now expects for fiscal 2026 comparable revenue growth of 8% to 10% (previously expected in a range of 6% to 9%) and continues to expect a profit margin of 18% to 19%.

Mobility now expects for fiscal 2026 comparable revenue growth of 5% to 7% (previously expected in a range of 8% to 10%) and continues to expect a profit margin of 8% to 10%. 

This outlook excludes burdens from legal and regulatory matters.

 

 

Notes and forward-looking statements 

Starting today at 08:00 a.m. CEST, the press conference call on Siemens’ second-quarter results for fiscal 2026 will be broadcast live at www.siemens.com/conferencecall.

Starting today at 09:30 a.m. CEST, you can also follow the conference call for analysts and investors live at www.siemens.com/analystcall.

Recordings of both conference calls will be made available afterwards. 

The financial publications can be downloaded at: www.siemens.com/ir.

 

This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. These statements may be identified by words such as “expect,” “look forward to,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project” or words of similar meaning. We may also make forwardlooking statements in other reports, in prospectuses, in presentations, in material delivered to shareholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Siemens’ management, of which many are beyond Siemens’ control. These are subject to a number of risks, uncertainties and factors, including, but not limited to those described in disclosures, in particular in the chapter Report on expected developments and associated material opportunities and risks in the Combined Management Report of the Siemens Report (siemens.com/siemensreport), and in the Interim Group Management Report of the Half-year Financial Report (provided that it is already available for the current reporting year), which should be read in conjunction with the Combined Management Report. Should one or more of these risks or uncertainties materialize, should decrees, decisions, assessments or requirements of regulatory or governmental authorities deviate from our expectations, should events of force majeure, such as pandemics, unrest or acts of war, occur or should underlying expectations including future events occur at a later date or not at all or assumptions prove incorrect, actual results, performance or achievements of Siemens may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Siemens neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.

This document includes – in the applicable financial reporting framework not clearly defined – supplemental financial measures that are or may be alternative performance measures (non-GAAP-measures). These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Siemens’ net assets and financial positions or results of operations as presented in accordance with the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently.

Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

 

 

 

Financial Results 

Second Quarter and First Half of Fiscal 2026

Key figures (in millions of €, except where otherwise stated)

 

 

 

Consolidated Statements of Income

 

 

 

Consolidated Statements of Comprehensive Income

 

 

 

Consolidated Statements of Financial Position

 

 

 

Consolidated Statements of Cash Flows

 

 

 

Overview of Segment figures

 

 

 

EBITDA Reconciliation

 

 

 

Orders & Revenue by region