Siemens Orders Soar to €124 Billion but Overbought RSI Prompts Profit-Taking Ahead of AI Roadshow

Siemens shares pull back from overbought territory after strong Q2 results. Orders jump 18% to record backlog, while Digital Industries revives. New €6B buyback announced.

The euphoria that drove Siemens shares to a 52-week high of €272.20 on Thursday evaporated almost as quickly as it appeared. By Friday’s close, the stock had shed 4.85% to €259.00, a classic case of investors cashing in after a blistering run. The sell-off, while jarring in its speed, was widely anticipated: with a relative strength index reading of 81.2, the Munich-based technology group had strayed deep into overbought territory. Over the past 30 days the shares still show a 9.10% gain, and the 12-month picture remains healthy at plus roughly 16%.

The retreat came on the heels of an upbeat quarterly scorecard that highlighted both the group’s operational heft and the persistent headwinds buffeting parts of its portfolio. Orders surged 18% on a comparable basis to €24.1 billion in the second quarter, pushing the order backlog to a record €124 billion. That mountain of future work gives Siemens unusual visibility at a time when many industrial peers are still wrestling with patchy demand. Revenue rose a more modest 6%, underscoring the gap between today’s orders and tomorrow’s revenues.

Digital Industries, the automation division that had been a drag during the manufacturing downturn, showed clearer signs of revival. Comparable order intake jumped 12% to €4.8 billion, while sales climbed 8%. Software, a key profit driver, performed strongly. Profitability also improved: earnings reached €857 million and the margin widened to 18.5%. Management responded by raising the lower end of the division’s full-year comparable revenue growth forecast to a range of 7% to 10% – a signal that the recovery has more substance than earlier hoped.

The data-centre boom put an exclamation mark on the smart infrastructure business. Comparable orders there rocketed 35% to €7.5 billion, with sales up 10%. New business from data centres alone hit €1.9 billion, a figure chief executive Roland Busch described as “unprecedented” and the result of “three-digit percentage” order growth. Siemens expects the data-centre expansion, fuelled by cloud and AI infrastructure, to run for another two to three years, and is expanding production of low- and medium-voltage equipment in the United States to meet demand.

Not everything fired on all cylinders. The mobility unit, which supplies rail technology, saw sales stuck at €3.0 billion while profit slumped 28% to €208 million. US tariffs and delayed call-offs on major rail-infrastructure projects hammered the segment, dragging its margin to 6.9%. Currency effects also took a bite, clipping order intake and sales by 7 and 6 percentage points respectively. The mobility weakness stands as a clear counterpoint to the strong group narrative.

Siemens is using its cash generation to reward shareholders. Free cash flow rose to €1.7 billion in the quarter from €1.0 billion a year earlier, underpinning a newly announced share buyback programme of up to €6 billion spread over five years. The group’s full-year guidance remains intact: management still expects to hit the upper end of the 6% to 8% comparable revenue growth range, with earnings per share before purchase-price allocation effects seen between €10.70 and €11.10.

Behind the recent rally sits a clear strategic pivot. Siemens is leaning hard into artificial intelligence, with the “Eigen Engineering Agent” designed to cement its lead in industrial automation. The company is repositioning itself from a traditional industrial conglomerate into a pure technology and software provider – a message the board plans to take on the road this week. A roadshow kicks off Tuesday in Paris for institutional investors, before the delegation crosses the Atlantic for meetings in Boston and New York on 26 and 27 May.

From a chartist’s perspective, the key support level to watch is the Friday close at €259. If that gives way, the 50-day moving average near €234 offers the next plausible floor for the broader uptrend. The next scheduled earnings update on 6 August 2026 will provide a fresh test for both the Digital Industries recovery and the resilience of the data-centre bonanza.