Siemens Energy Shatters Order Record as AI Data Centers Drive Every Fourth Gas Turbine Sale

Profit-taking hits Siemens Energy stock after blistering rally, even as record €17.7B orders, AI data center demand, and narrowing wind losses drive upgraded full-year targets.

The numbers were stellar: record orders, upgraded guidance, and narrowing losses at the struggling wind division. Yet investors sent Siemens Energy shares sliding nearly 5% on Friday, in a classic case of profit-taking after a blistering rally.

Shares closed at €169.18 in Frankfurt, cutting the year-to-date gain to approximately 38%. On a 12-month basis, the stock still trades nearly 123% higher.

The AI Boom Behind the Blowout

Demand from artificial-intelligence data centres is reshaping Siemens Energy’s business. One in every four gas turbines the company now sells goes to operators of such facilities, a trend that is more than offsetting weakness in other industrial end-markets.

The grid technology division is also firing on all cylinders, delivering an operating margin above 17% in the latest quarter. To keep pace with surging global demand, the group is expanding capacity in the United States with new factories planned in Mississippi and North Carolina.

Record Order Intake and a Fattening Backlog

In the second quarter of its fiscal 2026, Siemens Energy booked orders worth €17.7 billion — an all-time high and a 29% jump year-on-year. Revenue rose 9% to €10.3 billion. Profit before special items advanced 29% to around €1.2 billion, while free cash flow climbed 42%.

The order backlog swelled by €8 billion in a single quarter to a new record of €154 billion, providing multi-year revenue visibility.

The wind power unit Siemens Gamesa also showed signs of stabilisation, with its operating loss narrowing to €44 million from €249 million in the same period a year earlier.

Guidance Raised, Cash Flow to Fund Buybacks

Management responded by upgrading its full-year targets. Siemens Energy now expects revenue growth of between 14% and 16%, with an operating margin of 10% to 12%. Net profit for the year is seen reaching around €4 billion.

Given the strong cash generation, the board is planning to accelerate share buybacks. A formal decision has yet to be taken, but the announcement is expected to reignite the buyback debate when the company updates the market in the coming week.

Analysts Stand Pat, Eye Wind Recovery

The correction has not shaken analyst conviction. JPMorgan reaffirmed its “Overweight” rating with a €225 price target. Goldman Sachs has a “Buy” and a fair-value estimate of €212. Bernstein Research targets €210, while Deutsche Bank and Berenberg each see €200 — all with buy recommendations. The average consensus price target stands at roughly €186.

Still, the stock’s next leg higher will depend heavily on one factor: Siemens Gamesa must continue its operational rehabilitation. Until the wind division delivers sustained profitability, some caution is likely to linger beneath the surface of the AI-driven growth story.