Siemens Lifts Sights as Record Orders and a Slimmer Portfolio Redraw the Growth Map

Siemens is asking investors to judge it on a smaller company with larger ambitions. The Munich-based industrial group has raised its medium-term targets and pointed to a bulging order book as the foundation — but the numbers now rest on a business that will soon exclude its Healthineers majority, shifting the yardstick against which future profit will be measured.

Comparable order intake climbed 25% to EUR 108.2 billion in fiscal 2025/26, lifting the backlog to EUR 143 billion. The final three months delivered the sharpest jolt: fourth-quarter orders jumped 58% to EUR 34.8 billion, well clear of the EUR 27.5 billion analysts had pencilled in. Demand flowed from rail — high-speed and commuter train contracts — and from power technology for data centres, with projects in the US and Europe adding to the pile.

That pipeline only matters if Siemens converts it profitably, and the early signs are supportive. Industrial profit rose 13% to a record EUR 13.3 billion, with the margin at 16.3%.

A Higher Bar, Measured Without Healthineers

Under the revised plan, comparable revenue growth is now targeted at 7–11%, up from 6–9%, with earnings per share before purchase-price effects growing at a double-digit rate. For fiscal 2026/27, Siemens projects comparable sales growth of 9–11% and EPS before certain purchase-price effects of EUR 10.20–10.80. The comparable prior-year figure, stripped of Healthineers, is EUR 9.27.

JPMorgan analyst Phil Buller flagged that the new guidance sits above market expectations, and that order intake also beat forecasts. Citi reiterated its buy rating with a EUR 335 price target. The stock rose 1.7% on the day.

The structure of the group is changing alongside the numbers. Siemens intends to hand 34.1% of Healthineers to its shareholders, with two Siemens shares earning one Healthineers share, cutting its stake from 67% to just under 33%. Reuters reports the transfer is expected in May. A dividend of EUR 5.50 per share has been proposed, EUR 0.15 above the prior year, subject to shareholder approval.

Where the Growth Is Meant to Come From

Digital revenue advanced 16% to EUR 10.9 billion in fiscal 2026, and management wants that figure doubled by fiscal 2030. Data centres already underpin a sizeable slice of demand: Siemens booked more than EUR 8.5 billion in orders from that segment in fiscal 2025/26. Chief executive Roland Busch has cast industrial AI as a growth lever, and said the partnership with Nvidia — spanning joint projects such as digital twins — continues regardless of the leadership question surrounding Jensen Huang.

The "One Tech Company" strategy aims to bind digitalisation and industrial AI more tightly together, with sales and marketing partly centralised. Investors, according to Handelsblatt, want more clarity on how that strategy translates into results.

The burden is not spread evenly across the divisions. For fiscal 2027, Digital Industries is guided to revenue growth of 8–12% at a margin of 20–22%. Smart Infrastructure is expected to lead on growth at 11–13%, while Mobility is seen at 6–8%.

A Profit Comparison Distorted by One Sale

Headline net profit fell to EUR 9.5 billion from EUR 10.4 billion, a decline that reflects the prior year's EUR 2.1 billion gain from the sale of Innomotics rather than any weakening in operations. The record industrial result and the lower group profit therefore tell separate stories.

What ties the outlook together is execution. Siemens has the order book and the improved industrial base; whether rail contracts, data-centre projects, software and the corporate reshaping deliver the raised targets is the question investors will keep asking.