Siemens reported a strong close to its fiscal year 2026, which ended in September, with several key metrics reaching all‑time highs. Group revenue rose 8 percent to €83.4 billion, while order intake jumped 25 percent to a record €108.2 billion.
Group free cash flow increased from €10.8 billion to €12.1 billion, another historic high. Industrial business profit grew 13 percent to €13.3 billion, and the industrial profit margin improved from 15.4 percent to 16.3 percent — both records.
Net income fell from €10.4 billion to €9.5 billion, partly because the prior year benefited from a €2.1 billion one‑off gain on the sale of Innomotics.
Drivers of growth
Siemens attributes the strong performance to electrification projects, accelerating digitalization, industrial adoption of artificial intelligence and a surge in data‑centre investments. Under CEO Roland Busch, the company has reshaped its strategy to combine traditional industrial technologies with software and AI solutions. The ONE Tech Company program increases focus on industrial AI, digital products and cross‑business integration.
The company’s digital business grew: Digital revenue rose 16 percent to €10.9 billion, and Digital Industries software revenue increased 13 percent on a comparable basis to €7.2 billion. Recurring annual revenue expanded 12 percent to €6.1 billion. Busch said that about 5 percent of Digital Industries software revenue in fiscal 2026 came from AI‑related solutions.
Data‑centre build‑out has also been a meaningful growth opportunity: Smart Infrastructure won significant orders for U.S. and European data‑centre projects, driven by demand for power supply, electrical infrastructure and building operations technology. Busch told Bloomberg he expects major cloud and tech companies’ investment wave to continue for at least three more years, although permitting timelines are lengthening.
Demand for industrial automation is recovering as well. Siemens reported rising orders from machine builders and other industrial customers and expects further improvement next fiscal year. The company highlighted China, where a portfolio tailored to local needs expanded by about 25 percent — an important development amid increasing competition from Chinese suppliers such as Shenzhen Inovance.
M&A and sector positioning
Siemens is also strengthening its footprint in semiconductor‑related software: the company reached an agreement to acquire Lauterbach this week, a move aimed at bolstering its position in chip‑design tool markets.
Mobility performed favorably too: in the fourth quarter the unit secured several major contracts, including a €2.4 billion high‑speed train order in Germany.
Guidance, targets and shareholder actions
Relying on robust market dynamics and record backlog, Siemens raised its medium‑term comparable revenue growth target to 7–11 percent per year (up from 6–9 percent). Instead of a high single‑digit increase, the company now targets double‑digit growth in adjusted EPS before acquisition purchase price allocation effects.
For fiscal 2027 management provided concrete guidance: group comparable revenue growth of 9–11 percent and adjusted EPS in the range of €10.20–€10.80 per share. These figures represent growth versus a comparable 2026 base of €9.27 per share (excluding Siemens Healthineers).
By segment, the company expects Digital Industries to grow revenue by 8–12 percent, Smart Infrastructure by 11–13 percent and Mobility by 6–8 percent.
Siemens also plans a significant portfolio move: it intends to distribute its 34.1 percent stake in Siemens Healthineers directly to Siemens shareholders, proposing one Siemens Healthineers share for every two Siemens shares. Shareholder approval for the transaction is required and is scheduled for February 2027.
The board recommended a higher dividend: after last year’s €5.35 per share, management proposes a dividend of €5.50 per share.
Conclusion
Fiscal 2026 was a record year for Siemens on orders, industrial profit and free cash flow, propelled by industrial AI, data‑centre investment and automation demand. The company raised medium‑term ambitions, issued explicit 2027 guidance and outlined portfolio and shareholder measures intended to sharpen its industrial and technology focus.
This article does not constitute investment advice or a recommendation.
