Siemens Stock Gains Momentum from AI Infrastructure Demand

Siemens raises 2026 EPS forecast after strong Q1 results, driven by AI data center demand and a record €120B order backlog. The company accelerates its €6B share buyback program.

Siemens AG continues to demonstrate confidence in its financial future through a robust share repurchase initiative, backed by a strong operational performance. The Munich-based industrial technology group is capitalizing on the artificial intelligence expansion, reporting powerful quarterly figures and upgrading its annual outlook. As the order backlog swells to a new peak, the company's shares are consolidating below their January high.

Strong Quarterly Performance Underpins Confidence

For the first quarter of fiscal 2026, Siemens reported a 10% increase in orders received, reaching €21.4 billion. Revenue grew by 8% to €19.1 billion. Profit in the industrial business surged 15% to €2.9 billion, with the corresponding margin hitting 15.6%. The company's order backlog ascended to a record €120 billion.

A significant growth driver was the data center business, which secured orders worth €1.8 billion. Demand in the United States for this segment exploded, with orders up 54% year-over-year and revenue climbing 35%. This performance positions Siemens as a direct beneficiary of AI-related infrastructure investment. In response to these results, management raised its full-year 2026 earnings per share (EPS pre PPA) forecast to a range of €10.70 to €11.10, up from the previous guidance of €10.40 to €11.00.

Accelerated Share Buyback Program

The company is actively executing its repurchase plan. Between February 16 and 22, Siemens acquired 354,983 of its own shares at average prices ranging from approximately €234 to €245. The ongoing buyback program is authorized for up to €6 billion over a maximum of five years. Since February 2024, the conglomerate has repurchased about 21.8 million shares, representing a volume of nearly €4.4 billion. A cancellation of 18 million treasury shares is scheduled for March.

Corporate Restructuring Advances

Parallel to its operational success, Siemens is progressing with a corporate transformation. The company plans to deconsolidate its roughly 67% stake in Siemens Healthineers. The current proposal involves distributing 30% of the Healthineers shares to Siemens stockholders via a spin-off. Detailed plans are expected to be presented early in the second quarter of 2026. This transaction is designed to streamline Siemens into a more focused technology enterprise.

Analyst Sentiment Strengthens

Market analysts have revised their price targets upward following the strong report. J.P. Morgan analyst Phil Buller increased his target to €325 from €300, citing strong order momentum and the company's exposure to the AI theme. Goldman Sachs reaffirmed a positive view with a €264 target, highlighting improved automation profitability. As of mid-February, third-party analyst price targets for Siemens equity span a wide range from €185 to €325.

Siemens shares closed at €246.20 on Friday, trading approximately 6% below their 52-week high of €261.55 reached on January 13. Investors are now looking ahead to the Q2 results announcement on May 13 for confirmation that the tailwinds from data centers and automation continue to propel performance.