Siemens Energy Rides US Data Center Wave to Record Orders, Analysts Lift Targets Above €200

Boosted by AI-driven US data center demand, Siemens Energy posts near-record orders, raises profit forecast, and sees stock rally 46% year-to-date.

The artificial intelligence revolution is proving a powerful current for Siemens Energy. Buoyed by a surge in demand for transformers and grid infrastructure from American data centers, the German energy technology group has racked up a near-record order intake and sharpened its full-year profit forecast. The market has responded in kind: the stock has rallied around 46% since the start of the year and now trades within striking distance of its 52-week high.

Orders surge as US market hits overdrive

New business in the first half of the fiscal year came in at close to €18 billion, comfortably ahead of analyst estimates. The company reported that order intake in the Americas jumped 65% year-on-year, driven by the breakneck expansion of AI-related computing capacity. That momentum has pushed Siemens Energy's total backlog to fresh heights, giving management confidence to raise its net income target for fiscal 2026 to roughly €4 billion — a figure that previously sat at the lower end of expectations.

The cash isn't just flowing into the order book. Siemens Energy posted second-quarter revenue of €10.29 billion, up 3.3% from a year earlier, while net profit climbed to €835 million and earnings per share reached €0.89. Perhaps more tellingly, the long-troubled wind turbine subsidiary Gamesa narrowed its operating loss to just €39 million, offering the clearest sign yet that the division's restructuring is gaining traction.

Analysts scramble to raise price targets

The strong results have triggered a flurry of upward revisions from sell-side analysts. Bernstein Research lifted its price target from €150 to €210, keeping an “Outperform” rating and explicitly citing the AI tailwind as a catalyst. JPMorgan, which now sees the stock at €225, rates it “Overweight,” while Berenberg has a €200 target and a buy recommendation. The consensus view is that Siemens Energy is uniquely positioned to profit from the global build-out of power infrastructure needed to feed energy-hungry data centers.

Not everyone is convinced the rally can continue indefinitely. Morningstar has struck a more cautious note, arguing that the extraordinarily high order intake may normalise in the near future. Yet for now, the optimists are firmly in control. The stock changed hands at around €181 on Thursday, closing in on its 52-week peak of €188.

Dividend expectations rise alongside profits

With earnings momentum accelerating, analysts expect a substantial payout hike. The average forecast for fiscal 2026 calls for a dividend of €1.84 per share — more than double the prior year's distribution. That would mark a significant return of capital to shareholders and reflects management's growing confidence in the sustainability of the current earnings trajectory.

The main challenge ahead is execution. Siemens Energy must now work through its bulging order backlog efficiently while continuing to expand margins in its transmission technology business. Geopolitical uncertainties remain a concern, but the company sees no meaningful supply chain disruptions on the horizon. For now, the combination of AI-driven demand, a recovering wind business, and a strengthened balance sheet has created a powerful narrative that investors are buying into — and analysts are busy putting higher price tags on.