Siemens Healthineers (SHL) Status update summary

Q2 performance highlights

• Achieved strong book-to-bill ratio and margin expansion, especially in Imaging and Advanced Therapies, with Diagnostics also delivering margin gains from transformation efforts.

• Varian posted robust growth, though a higher equipment mix temporarily muted margins; free cash flow was significantly higher year-over-year.

• Outlook for top line and EPS confirmed, but EPS range widened to EUR 2.20–2.50 due to tariff impacts.

Guidance update and tariff impacts

• Revenue guidance remains at 5%-6% growth for the fiscal year; adjusted EPS range now EUR 2.20–2.50, reflecting a EUR 0.15 EPS impact from tariffs.

• Tariff assumptions include EU-U.S. rates rising from 10% to 20% in July and China at pre-pause rates, with a net EBIT effect of EUR 200–300 million and EUR 100 million in mitigations.

• Main tariff exposure is from exports of finished goods from Europe to the U.S., especially in Imaging and Advanced Therapies.

• Mitigation measures include inventory optimization, supply chain adjustments, selective pricing, and increased cost consciousness.

• For 2026, if current tariffs persist, the conservative case estimates a EUR 400–600 million EBIT impact.

Market dynamics and outlook

• Book-to-bill expected at least 1.1 for the full year, with H2 above 1 and no growth contribution from China in H2.

• Imaging and advanced therapies growth is driven by procedure demand and capacity expansion, making the business resilient to macroeconomic cycles.

• China market remains subdued due to ongoing anti-corruption campaigns, with normalization expected in the future.