Siemens Sharpens Its Sights: A 58% Order Surge, a Raised Growth Corridor and a Chip-Design Bolt-On

Siemens has turned a strong finish to its fiscal year into a more ambitious set of medium-term targets, lifting both its revenue and earnings guidance just as a blowout order intake underscored the momentum behind the business.

The Munich-based conglomerate now expects comparable revenue growth of 7–11% over the medium term, up from the 6–9% corridor it had previously targeted. On the bottom line, earnings per share before purchase price allocation (EPS pre PPA) are to grow at a double-digit percentage rate, replacing the earlier goal of high single-digit expansion. The two upgrades move in lockstep, with the company tying its higher profit ambition to the wider growth band for the business.

For fiscal 2027 specifically, Siemens is guiding toward comparable revenue growth of 9–11% and EPS pre PPA of €10.20 to €10.80. According to Reuters, that revenue outlook for the 2026/27 year refers to Siemens excluding Healthineers, with the spin-off slated for May.

Order Book Delivers a Jolt

The preliminary figures for the fourth quarter of fiscal 2026, released yesterday, gave the raised ambitions a hard number to stand on. Orders jumped 58% to €34.8 billion, while revenue advanced 11%.

That order performance drew particular notice from JPMorgan, which reiterated its "Overweight" rating and €345 price target, as reported in the media. Analyst Phil Buller gave a positive read on the strong intake, the outlook for the coming fiscal year and the upgraded medium-term goals. He also pointed out that order intake had clearly beaten both the bank's own expectations and the consensus.

Goldman Sachs strategist Daniela Costa, cited by dpa-AFX, expects the strong closing quarter and the higher guidance to lift the consensus estimate for 2026/27 earnings per share by a low single-digit percentage.

Five Houses Hold Their Ground

UBS reaffirmed its buy recommendation with a €330 target. Analyst Andre Kukhnin pointed to the robust results and the outlook, and said the more ambitious medium-term growth plans should push market expectations higher. Four other research houses confirmed their existing ratings and price targets, which range from €300 to €345. One of those assessments placed the 2027 outlook largely within the expected range.

Portfolio Moves on Two Fronts

Siemens also pressed ahead with expanding its software footprint. On Tuesday the group signed an agreement for the planned acquisition of Lauterbach, whose debug and trace technologies for embedded software and SoC architectures are to be folded into Siemens' semiconductor design and verification portfolio.

A day earlier, Siemens and Kärnten Netz GmbH agreed a six-year contract for the provision of Gridscale-X software, which the Austrian grid operator will use to support digitalization and the expansion of its network capacity.