Siemens Healthineers (SHL) Q1 2026 earnings summary

Executive summary

• Fiscal year 2026 began with solid performance and 3.8% revenue growth, driven by strong Imaging and Precision Therapy segments despite headwinds from tariffs and foreign exchange.

• Preparations for deconsolidation from Siemens AG are progressing well, supported by a strong investment grade rating from Moody's.

• The Elevating Health Globally strategy is gaining traction, with clinical innovation and value partnerships expanding.

• Adjusted EBIT margin held steady at 15.0% year-over-year, with net income at €456 million, down 4.7% from Q1 2025.

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

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.

• Imaging revenue grew 5.7% year-over-year, driven by photon counting CT and radiopharmaceuticals.

• Precision Therapy grew 5.9%, with Varian contributing 9% growth and margin expansion to 14.9%.

• Diagnostics revenue declined 3.1% due to structural changes in China, with stable performance outside China; margin dropped to 2.1%.

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

Outlook and guidance

• Fiscal year 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 continuing to decline.

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

• Diagnostics margin expected to improve sequentially but decline year-over-year; midterm margin guidance for Diagnostics remains valid, with China now only 7–8% of Diagnostics revenue.

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