Siemens (SIE) Q1 2026 earnings summary

Executive summary

• Fiscal 2026 began with strong momentum, with group orders up 10% year-over-year to €21.4 billion and broad-based growth across all business segments, led by Smart Infrastructure and large data center orders in the US.

• Revenue grew 8% year-over-year to €19.1 billion, with the Americas leading at 11% and record order backlogs providing strong visibility for future growth.

• Industrial business profit reached €2.9 billion, with a margin of 15.6%, driven by Digital Industries and Smart Infrastructure, exceeding market expectations despite currency headwinds.

• Strategic partnerships, technology launches in AI and digitalization, and the integration of Altair and Innomatics are driving future growth.

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

Financial highlights

• Orders rose 10% year-over-year to €21.4 billion, with a book-to-bill ratio of 1.12 and backlog at €120 billion.

• Revenue increased 8% year-over-year to €19.1 billion; EPS pre-PPA was €2.80 for the quarter.

• Free cash flow was €0.7 billion, reflecting a seasonal swing after a strong Q4 and impacted by working capital build-up and nuclear waste settlement.

• Industrial net debt/EBITDA at 0.9, maintaining a strong capital structure.

• Book-to-bill ratio stood at 1.12, indicating robust demand.

Outlook and guidance

• Raised and narrowed group profit guidance for EPS pre-PPA to €10.70–€11.10 for FY 2026.

• Group expects 6–8% comparable revenue growth and a book-to-bill ratio above 1 for FY 2026.

• Digital Industries targets 5–10% comparable revenue growth and 15–19% profit margin; Smart Infrastructure expects 6–9% growth and 18–19% margin; Mobility expects 8–10% growth and 8–10% margin.

• All business segments forecasted to deliver solid growth, with book-to-bill expected above 1.

• Negative currency effects anticipated to strongly burden nominal growth and profit.