Siemens Orders Hit €24.1B, Goldman Ups Target to €290 as €6B Buyback Launched; Profit Slide Clouds Outlook

Siemens reports 18% order growth, record €124B backlog, and launches €6B buyback; Goldman raises target to €290. Mobility weak on tariff headwinds, but digital business shines.

Strong order inflows and a fresh €6 billion buyback programme have bolstered the bull case for Siemens, even as second-quarter earnings slipped and one division flagged tariff-related headwinds. Goldman Sachs raised its price objective on the stock to €290 from €235, reiterating a buy rating, while the industrial group announced a share repurchase plan of up to €6 billion to run over as long as five years.

Siemens reported comparable order intake growth of 18% in the three months to 31 March, lifting orders to €24.1 billion and the book-to-bill ratio to 1.22. The order backlog swelled to a record €124 billion. Revenue, however, came in at €19.76 billion – barely changed on an actual basis – though on a comparable basis it rose 6%, in line with the full-year guidance of 6% to 8% comparable growth. Net income fell to €2.2 billion from €2.4 billion a year earlier, and earnings per share dropped to €2.61 from €2.86.

Goldman Sachs analyst Daniela Costa said the higher target reflects stronger estimates for order intake and revenues, and argued that Siemens is significantly better positioned for 2027 than the market consensus. The bank also expects the group will quickly replace the expiring buyback programme, a move that has now been confirmed by management. The new €6 billion plan underlines management’s confidence in generating sufficient cash flow to continue returning capital to shareholders without being forced into short-term market decisions.

Free cash flow rose to €1.7 billion in the quarter, and industrial free cash flow reached €2.4 billion. The digital business expanded 19% in the first half, providing a further growth engine. Smart Infrastructure was a standout, with orders jumping 35% to €7.5 billion and revenue up 10%.

Yet the quarter also exposed a clear weak spot. The Mobility division saw orders surge 41% to €5.3 billion, but revenue slipped 2% and earnings tumbled 28% to €208 million, weighed down by US tariffs and delayed project calls. Siemens lowered its growth expectation for the division to 5% to 7%.

The stock closed Friday at €259.00, losing 3.47% on the week but still showing a 30-day gain of 4.58% and a year-to-date advance of 7.51%. Over 12 months the shares are up 16.54%. However, the relative strength index at 81.1 flags an overbought condition, and the price has strayed more than 10% above the 50-day moving average, suggesting consolidation may be needed.

The analyst community is broadly supportive. UBS and JPMorgan also rate the stock a buy, while Deutsche Bank holds at "hold" and Barclays stays at "underweight". For the full fiscal year 2026, analysts anticipate earnings per share of €10.93 and a dividend of €5.65, up from €5.35 last year. Siemens itself guided for EPS pre PPA of between €10.70 and €11.10.

The next data point arrives in August with third-quarter results, when investors will gauge whether the order momentum can convert into sustainable margin improvement – especially as Mobility works through its tariff-related drag. For now, the combination of a raised analyst target and a fresh buyback gives the stock a sturdy floor, even as the technical picture calls for a pause.