Siemens lifts FY guidance despite Q1 profit drop

(Sharecast News) - German technology firm Siemens posted a drop in first‑quarter profits on Thursday, reflecting the absence of last year's one‑off gain, but the group lifted its full‑year earnings guidance as both revenue and orders improved. Siemens said net income fell 43% to €2.22bn from €3.87bn a year earlier, when results were boosted by a €2.07bn gain from its sale of Innomotics. Earnings per share dropped to €2.58 from €4.66.

On a continuing operations basis, however, profits rose 24% to €2.23bn, while pre‑PPA earnings per share came in at €2.80.

Siemens said industrial business profits increased 15% to €2.9bn, with margins improving to 15.6% from 14.1%, driven by strong performances at Digital Industries and Smart Infrastructure.

Group revenues rose 4% to €19.14bn, or 8% on a like-for-like basis, with growth seen across all industrial divisions, while orders were up 7% to €21.37bn, or 10% on a comparable basis.

Looking ahead, Siemens hiked its FY26 pre‑PPA EPS guidance to €10.70-€11.10, up from €10.40-€11.00 previously, while reiterating expectations for 6%-8% comparable revenue growth. However, Siemens again warned that currency headwinds will weigh heavily on reported growth and profitability in FY26.

Chief executive Roland Busch said: "Our strong first-quarter performance shows that we're delivering on our strategy. Siemens is very well positioned in its growth markets. Artificial intelligence is a strong growth driver for our businesses.

"We're scaling industrial AI in our core industries together with world-class partners. By integrating AI deeply into design, development, products and operations, we're adding measurable value for our customers."

As of 0945 GMT, Siemens shares were up 5.81% at €271.55 each.





Reporting by Iain Gilbert at Sharecast.com