Siemens Beats Q2 Earnings Expectations on Record Orders
Siemens reported stronger-than-expected second-quarter fiscal 2026 earnings on Wednesday, driven by record order intake across several business divisions. However, group revenue came in slightly below analyst expectations, while profit in its Industrial Business declined compared with the previous year.
The German industrial giant posted basic earnings per share of €2.60 for the quarter ended March 31, 2026, surpassing analyst forecasts of €2.46. Earnings per share before purchase price allocation accounting (EPS pre-PPA) reached €2.81, also above the consensus estimate of €2.68.
Record Orders Boost Siemens Performance
Siemens recorded quarterly orders of €24.11 billion, representing an 11% increase on a nominal basis and an 18% rise on a comparable basis excluding currency and portfolio effects. Analysts had expected orders of €22.29 billion.
The company’s Smart Infrastructure division delivered a record quarterly order intake of €7.53 billion, significantly above market expectations of €6.35 billion. Comparable order growth for the segment surged 35%.
Despite the strong order growth, Siemens reported group revenue of €19.76 billion, roughly flat from a year earlier and slightly below analyst expectations of €20.14 billion. Comparable revenue growth increased 6%, but currency translation effects negatively impacted reported figures.
According to Siemens, currency movements reduced order growth by seven percentage points and revenue growth by six percentage points during the quarter.
Industrial Business Profit Declines
Profit from Siemens’ Industrial Business fell to €2.97 billion, resulting in a margin of 15.4%. This was below analyst expectations of €3.05 billion.
The prior-year period had benefited from a €300 million gain linked to the company’s exit from a Smart Infrastructure business, contributing to stronger comparative results in fiscal 2025.
Digital Industries Outperforms While Mobility Weakens
Siemens’ Digital Industries segment delivered stronger-than-expected results, with profit climbing to €857 million, above analyst estimates of €786 million. The division reported a margin of 18.5%.
Meanwhile, the Mobility segment posted profit of €208 million, missing expectations of €276 million. The division reported a margin of 6.9% and pointed to tariff-related impacts in the United States as a key challenge.
Siemens Healthineers also reported weaker results, with profit falling to €802 million, below analyst expectations of €878 million. The unit posted a margin of 14.1%.
Cash Flow Improves Sharply
Siemens reported net income of €2.24 billion for the quarter, including €102 million from discontinued operations due to released provisions.
Free cash flow from continuing and discontinued operations jumped 71% to €1.72 billion, exceeding analyst expectations of €1.63 billion.
Chief Executive Roland Busch said the company delivered a successful quarter despite ongoing geopolitical challenges, while Chief Financial Officer Veronika Bienert highlighted Siemens’ resilience and announced a new share buyback program aimed at rewarding shareholders.
Siemens Updates Fiscal 2026 Outlook
Siemens maintained its full-year fiscal 2026 guidance, forecasting comparable revenue growth between 6% and 8% alongside EPS pre-PPA of €10.70 to €11.10.
The company also raised guidance for its Digital Industries division, now expecting comparable revenue growth of 7% to 10%, up from the previous range of 5% to 10%.
However, Siemens lowered its outlook for the Mobility segment, reducing expected comparable revenue growth to 5%–7% from the previous forecast of 8%–10%.
