Siemens (SIE) Q1 2026 earnings summary

Executive summary

• Fiscal 2026 began with strong momentum, with orders up 10% year-over-year to €21.4 billion and a record order backlog of €120 billion, driven by Smart Infrastructure, Digital Industries, and large US data center orders.

• Revenue grew 8% year-over-year to €19.1 billion, with broad-based growth across all businesses and regions, led by the Americas.

• Industrial business profit reached €2.9 billion, with a margin of 15.6%, exceeding expectations despite currency headwinds.

• Strategic partnerships, technology launches in AI and digitalization, and portfolio streamlining are driving future growth.

• 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.

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 €677 million, reflecting a seasonal swing after a strong Q4 and impacted by working capital build-up and a €400 million nuclear waste settlement.

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

• Basic EPS was €2.60 (down 45% year-over-year); ROCE declined to 13.5% due to lower net income and higher capital employed.

Outlook and guidance

• FY 2026 EPS pre-PPA guidance raised to €10.70–€11.10.

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

• Digital Industries targets 5–10% 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.