Siemens Energy’s Order Book Swells to €146 Billion as AI Hunger for Power Reshapes the Grid

Siemens Energy raises 2026 revenue forecast to 14-16% as AI-driven electricity demand surges; orders hit record €146B, and new TCS alliance targets AI-enabled data centers.

The insatiable electricity demands of artificial intelligence are rewriting the growth trajectory at Siemens Energy, pushing the industrial group to lift its full-year guidance for the second time in months and forge a new strategic alliance with one of India’s largest technology firms.

The Munich-based company now expects revenue growth of 14 to 16 percent for fiscal 2026, up from the previous range of 11 to 13 percent, after an explosive second quarter that saw orders surge nearly 30 percent to €17.75 billion. That figure comfortably beat the analyst consensus of €15.6 billion and lifted the total order backlog to a record €146 billion. The book-to-bill ratio of 1.82 underscores just how much new business is flooding in faster than the company can deliver.

Chief executive Christian Bruch told the Financial Times that the need for stable, round-the-clock power from data centre operators is accelerating faster than earlier forecasts anticipated. Siemens Energy is capturing that demand directly through gas turbines for short-term generation and the grid infrastructure required to connect these energy-hungry facilities.

The Grid Technologies division is leading the charge, targeting revenue growth of 25 to 27 percent with a margin of 18 to 20 percent. AI data centres already accounted for roughly a quarter of demand in the first quarter. Gas Services is aiming for 16 to 18 percent growth. At group level, management expects a net profit of around €4 billion and has nearly doubled its free cash flow forecast to approximately €8 billion, up from the earlier €4 billion to €5 billion range.

A New AI Alliance and a Wind Unit on the Mend

On 27 April, Siemens Energy signed two memorandums of understanding with Tata Consultancy Services, extending a partnership that has spanned more than two decades. TCS remains the company’s preferred IT partner and will now work jointly with Siemens Energy to develop AI-enabled data centres and embed digital twins and predictive analytics into power generation and grid operations. The aim is to scale early AI experiments into full-blown industrial implementations.

The other major piece of the puzzle is Siemens Gamesa, the long-troubled wind power subsidiary. The unit’s operating loss narrowed to €44 million in the second quarter from €249 million a year earlier, beating expectations of a €74 million deficit. The division still needs to reach an operational break-even before special items this year, but the improvement removes what has been the biggest drag on the group’s overall margin.

US Investment and Tariff Exposure

Siemens Energy is also doubling down on its American footprint, investing roughly $1 billion in US manufacturing capacity. New factories for transformers and grid equipment are being built to support the local energy transition and meet surging industrial demand. The company operates 28 production sites in the US, which management says limits the impact of US import tariffs to a low triple-digit million euro amount.

A Pullback After the Peak

The stock hit a 52-week high of €188 on 24 April but has since retreated about 7 percent to trade around €175. Despite the recent profit-taking, the shares have more than doubled over the past twelve months and are up over 42 percent year to date. The full half-year results are due on 12 May, when investors will scrutinise the detailed performance of both the booming grid business and the still-stabilising wind division.