Siemens (SIE) Q1 2026 (Media) earnings summary

Executive summary

• Achieved a strong start to fiscal 2026 with orders up 10% to €21.4 billion and record-high order backlog of €120 billion, driven by Smart Infrastructure and Digital Industries.

• Revenue grew 8% year-over-year to €19.1 billion, with all business segments and regions contributing; Americas led with 11% growth.

• Profit margin for Industrial Business rose to 15.6%, exceeding market expectations; EPS pre PPA reached €2.80.

• Net income was €2.2 billion, down from €3.9 billion in Q1 FY 2025, which included a €2.1 billion after-tax gain from the Innomotics sale.

• Raised group-level outlook for earnings per share to €10.70–€11.10 and narrowed target range for fiscal 2026.

Financial highlights

• Orders increased 10% year-over-year to €21.4 billion; book-to-bill ratio at 1.12x.

• Free cash flow in Q1 was €0.7 billion, reflecting seasonal patterns and impacted by working capital build-up and nuclear waste settlement.

• Industrial business profit totaled €2.9 billion, with margin up 150bps year-over-year.

• Net income from continuing operations was €2.2 billion, with a tax rate of 24.4%.

• Capital structure remains strong with industrial net debt/EBITDA at 0.9x and double-A credit ratings.

Outlook and guidance

• Raised revenue growth guidance to the upper half of 6%-8% range for fiscal 2026; book-to-bill expected above 1.

• Increased EPS pre PPA guidance to €10.70–€11.10 for fiscal 2026.

• Digital Industries expects 5%-10% revenue growth and profit margin toward upper half of 15%-19% range.

• Smart Infrastructure revenue growth expected in upper half of 6%-9% range, with profit margin in upper half of 18%-19%.

• Mobility revenue growth confirmed at 8%-10% with profit margin guidance of 8%-10%.