Siemens Lifts Guidance on Record Orders While Salesforce Tie-Up Targets Industrial AI

Siemens raised its fiscal-year EPS guidance to EUR 11.20-11.50 after Q3 order intake rose 14% to EUR 27.9 billion, led by a Smart Infrastructure upgrade.

Siemens has raised its earnings outlook for the current fiscal year, leaning on an exceptionally strong third quarter that saw order intake climb 14% year over year to EUR 27.9 billion. The Munich-based industrial group now expects earnings per share before purchase price allocation of between EUR 11.20 and EUR 11.50, up from a prior range of EUR 10.70 to EUR 11.10.

Revenue for the quarter advanced 8% to EUR 20.8 billion, while the book-to-bill ratio — the measure of new orders against completed sales — came in at 1.34. That reading points to demand that should keep filling the pipeline well into coming quarters.

Smart Infrastructure Gets the Biggest Upgrade

The sharpest revision came in the Smart Infrastructure unit, which Siemens now expects to grow 10% to 11% this fiscal year at a margin of 18.5% to 19.5%. Both figures sit above the earlier targets of 8% to 10% growth and an 18% to 19% margin. Electrification demand and data-center infrastructure buildout are doing the heavy lifting.

Elsewhere, the company left its goals untouched. Digital Industries is still guided to 7% to 10% growth with a 17% to 19% margin, and Mobility remains on track for 5% to 7% growth at an 8% to 10% margin.

Software Push Extends to the Sales Floor

Beyond the quarterly numbers, Siemens has been widening its digital footprint through both acquisitions and alliances. In July, its EDA division picked up France's Defacto Technologies, a specialist in automated chip design, along with US-based Precision Innovations, which develops AI-driven chip planning built on the OpenROAD framework. The second deal is expected to close in the third quarter of 2026.

A fresh partnership announced Tuesday with Salesforce takes aim at a different part of the value chain: industrial sales and service. The two companies are linking Salesforce's Agentforce technology with Siemens Teamcenter SLM, its product lifecycle management software, in a bid to compress complex industrial processes that once took weeks into a matter of hours. Sales-partner onboarding is also expected to shrink from weeks to days.

The scale of the opportunity is considerable. Siemens counts 18,000 salespeople with full market coverage across 132 countries and says it fields more than 2,500 unqualified leads every month. Industry estimates suggest the high-margin aftermarket business grows roughly six times faster than new equipment sales and delivers about four times the margin — territory Siemens intends to capture with the AI-backed platform.

Earlier strategic moves round out the picture: a partnership with Sweden-UK's IFS to connect the Siemens Digital Twin with asset-management software, and a roughly USD 50 million stake in US manufacturing network Xometry, which offers access to more than 5,000 production partners worldwide.

Bricks, Machines and a Polish Service Hub

The expansion is not confined to software. A new building spanning some 24,000 square meters is set to house more than 3,000 people from early 2029, about 2,600 of them Siemens employees. Ferrovial will construct it from a design by La-Hoz Arquitectura, with LEED Platinum certification as the target.

In manufacturing, Siemens launched "Meet at the Machine," an initiative aimed at cutting CNC machine setup time by as much as 50%. TRAK Machine Tools is the first partner, and the program will be presented at IMTS 2026 in Chicago. Poland is also getting attention: the Mobility division is building its first greenfield service center in the country near Pozna?, with room to service up to seven vehicles simultaneously and an initial workforce of up to 50.

Buyback Rolls On as Leadership Shifts

Shareholder returns remain part of the story. A new buyback program of up to EUR 6 billion, running for as long as five years, was announced in May and kicked off on July 1. On the management side, Veronika Bienert took over as finance chief from Ralf P. Thomas on April 1, and Matthias Rebellius handed the reins of Smart Infrastructure to Peter Koerte in July.

Shares Stay Stuck Below Their Peak

None of the news flow has been enough to lift the stock. Siemens closed Tuesday at EUR 259.50 and was trading at EUR 260.15 more recently, roughly 11% below its 52-week high of EUR 291.55 reached at the end of August. Over the past 30 days the shares have shed 7.6%, a pullback that looks like broad consolidation after months of strong gains. The year-to-date picture is still positive, with a gain of 8.8%.

The wider market offered little support. The DAX ended the session down 0.2% at 25,402 points, weighed on by rising bond yields, elevated oil prices and expectations that the US Federal Reserve would tighten policy on Wednesday. Pre-market trading on Wednesday showed Siemens nearly flat at EUR 259.90. With no major corporate announcements in recent days, the August guidance hike remains the most recent price-moving catalyst for the industrial group.