Siemens posts record profit and orders, raises guidance

Siemens reported its highest-ever quarterly industrial profit and record new orders on Thursday, beating analyst forecasts across the board and prompting the German industrial conglomerate to raise its full-year earnings guidance for the second time this fiscal year.

Record Quarter Fueled by AI Data Centre Demand

Industrial profit rose 25% to €3.52 billion for the three months ended June 30, up from €2.82 billion a year earlier and ahead of the €3.18 billion analyst consensus, according to Reuters. Revenue climbed 7% to €20.79 billion, while orders surged 13% on a comparable basis to €27.9 billion — both quarterly records.investing+1

The results were driven by soaring demand for electrical equipment used in AI-powered data centres. Orders at the Smart Infrastructure division, which supplies that gear, jumped 42%. Smart Infrastructure's data centre business recorded triple-digit order growth in the first nine months of fiscal 2026, reaching around €6 billion. The Digital Industries factory automation unit also posted a sharp rebound.reuters+2

"We delivered another very successful quarter with record orders and profit," CEO Roland Busch said. "Our technological leadership in all businesses, clear focus on industrial AI, and strong positioning in attractive markets are driving our profitable growth."freemalaysiatoday

Raised Guidance and Healthineers Spin-Off

Siemens now expects full-year earnings per share of €11.20 to €11.50, up from prior guidance of €10.70 to €11.10. Free cash flow rose 42% to €4.1 billion in the quarter, well above the consensus estimate of €2.73 billion.reuters+1

The company also confirmed it can proceed with the planned spin-off of its Siemens Healthineers medtech unit after receiving binding tax clearance. "As expected, we've now received binding decisions from the tax authorities clarifying the relevant tax topics," CFO Veronika Bienert said.investing

Broader Industry Tailwinds

Siemens's order backlog reached €132 billion at quarter-end, with a book-to-bill ratio of 1.34, underscoring sustained demand. The company joins peers Schneider Electric and ABB in benefiting from the global buildout of computing infrastructure to support artificial intelligence workloads.freemalaysiatoday+1