Siemens Energy Hits Record Backlog as AI Demand Lifts Guidance; Analysts Split on Valuation

Siemens Energy posts record €154B order backlog as AI data center demand drives Gas Services orders; raises revenue forecast and boosts share buybacks to €3.6B.

The insatiable appetite of US artificial intelligence data centers for reliable power is reshaping the order books at Siemens Energy. The German industrial group posted a record €154 billion order backlog for its second fiscal quarter, driven by a near-30% surge in new orders to €17.7 billion. The standout performer was the Gas Services division, which booked a quarterly record €8.87 billion in orders as hyperscalers scramble for electricity generation solutions.

Revenue rose 8.9% to €10.3 billion, while net profit landed at €835 million. The wind power subsidiary Siemens Gamesa continued to stabilise, trimming its operating loss to €44 million from roughly €250 million a year earlier. Although management has not declared a turnaround, the narrowing deficit removes a major drag on group earnings.

Building on the momentum, Siemens Energy raised its full-year revenue growth forecast to 14–16%, up from the previous band of 11–13%. The stronger cash position also prompted an acceleration of shareholder returns: the company is adding a further €1 billion to its share buyback program, bringing total planned payouts from dividends and buybacks to as much as €3.6 billion for the current fiscal year, compared with an earlier target of €2.4 billion.

The market cheered the figures, sending the stock to close at €178, marking a 45% year-to-date gain. Over the trailing twelve months the shares have more than doubled, climbing 141%. That rally has drawn a wave of analyst upgrades. JPMorgan raised its price target to €225 with an Overweight rating, while Goldman Sachs lifted its target to €212 (Buy). Deutsche Bank and Berenberg both see fair value at €200, with Deutsche's analyst Gael de-Bray citing the improved earnings outlook.

Yet the euphoria is not universal. Barclays holds a more conservative view, pegging fair value at €110, and mwb research has issued a sell recommendation, arguing that the operational strength is already reflected in the share price. With the stock trading comfortably above its moving averages, the near-term focus turns to the 52-week high of €188, a level that could be tested if the current momentum holds.

Investors will have to wait until November for the next major catalyst, when management is set to unveil its medium-term targets through 2030. That update will likely provide a clearer test of whether today’s valuation can be justified against the long-term earnings trajectory.