Siemens Healthineers (SHL) Q1 2026 earnings summary

Executive summary

• Fiscal 2026 began with 3.8% comparable revenue growth, led by strong Imaging and Precision Therapy performance, despite significant headwinds from tariffs and foreign exchange.

• Diagnostics faced a 3.1% revenue decline, mainly due to structural market changes in China, while Americas and other regions showed renewed growth.

• The company is progressing with deconsolidation from Siemens AG and maintained a strong investment grade rating from Moody's.

• The Elevating Health Globally strategy is gaining traction, with notable customer partnerships and innovation launches.

• Free cash flow was €330 million, significantly lower than the prior year.

Financial highlights

• Q1 FY2026 revenue reached €5.4 billion, up 3.8% year-over-year, with Americas up 9% and China down 5% due to Diagnostics.

• Adjusted EPS was €0.49, down 3% year-over-year, but underlying EPS grew 17% excluding FX and tariff headwinds.

• Adjusted EBIT margin was 15%, flat year-over-year, with operational margin expansion offsetting ~200 bps of tariff and FX headwinds.

• Gross profit was €2,075 million, with a gross margin of 38.4%.

• Free cash flow dropped 59.2% year-over-year.

Outlook and guidance

• Fiscal 2026 outlook for 5–6% revenue growth and adjusted EPS of €2.20–2.40 is confirmed.

• Q2 group revenue growth expected below the 5–6% outlook range, with Diagnostics in China facing continued challenges and a more pronounced revenue decline.

• Imaging and Precision Therapy expected to grow mid- to high-single digits in Q2; margins in all segments anticipated to be below prior year due to tariffs and FX.

• Outlook assumes stable macroeconomic and interest rate environments, with significant negative currency effects expected.

• Outlook excludes potential portfolio measures and assumes no material impact from geopolitical conflicts.