Siemens posts record quarterly orders of €34.8 billion and raises growth targets
Key Facts
Siemens reported results for the fourth quarter of fiscal 2026 on November 12, posting record orders of €34.8 billion, up 58%, and revenue of €23.7 billion, up 11%. On a comparable basis, orders rose 58% and revenue increased 10%, excluding the effects of currency translation and portfolio changes. Industrial business profit rose 22% to a record €3.9 billion, with a margin of 16.8%. Net income also increased 32% to €2.4 billion, while basic earnings per share were €2.80 and earnings per share before purchase price allocation were €3.01. The company said the improvement spanned most of its industrial businesses, as it announced higher medium-term targets.
Orders and revenue figures show an acceleration in the fourth quarter compared with the third quarter of the same fiscal year, when comparable orders rose 14% to €27.9 billion and comparable revenue grew 8% to €20.8 billion. In the fourth quarter, comparable orders grew 58%, while comparable revenue growth reached 10%. On a nominal basis, quarterly revenue rose 11% to €23.7 billion. Siemens Group free cash flow reached a record €5.6 billion during the quarter, another indication of strong cash generation in the period. For fiscal 2025, revenue was €78.9 billion and orders were €88.4 billion, up 4% and 5%, respectively.
Siemens raised its medium-term comparable revenue growth target to a range of 7% to 11%, from 6% to 9%. The company also expects double-digit growth in basic earnings per share before purchase price allocation, compared with its previous target of growth in the high single digits. The target update comes alongside strong financial performance: revenue at Digital Industries rose 16% in fiscal 2026 to €10.9 billion. Chief Executive Roland Busch described industrial AI as an "exceptional growth opportunity." Siemens said in February that AI was a strong growth driver for its business and that it was expanding its applications in core industries with global partners.
In a separate announcement in October, Siemens said it was developing AI and digital twin applications for factories with Nvidia. It added that agent-based production planning could enable cost savings of up to 20%. These digital initiatives provide context for the company's expectation that its digital businesses will continue to grow, while its announced targets remain tied to comparable revenue growth and earnings per share measures. This follows Siemens' August increase in its fiscal 2026 earnings per share guidance before purchase price allocation to a range of 11.20-11.50 euros, from 10.70-11.10 euros. That update concerned fiscal 2026 guidance, while the new results include guidance for the following year.
Siemens proposed increasing its dividend for fiscal 2026 to €5.50 per share, compared with €5.35 in the previous year. The company's U.S.-listed shares, trading under the ticker SIEGY, closed at $154.46 on November 11, the eve of the results announcement. Siemens shares in Frankfurt were also at €277 that day. The company plans to distribute Siemens Healthineers shares to its shareholders during fiscal 2027, a step that will change the basis of the group's outlook after the separation. The fourth-quarter results and proposed dividend provide a picture of the group's performance ahead of that expected structural change.
For fiscal 2027, Siemens expects comparable group revenue growth of 9% to 11% and basic earnings per share before purchase price allocation of €10.20 to €10.80. The company set February 11, 2027, in Munich, as the date for reporting its fiscal first-quarter results. Those results will be the next quarterly milestone in the year when the company expects to distribute Siemens Healthineers shares. The annual guidance announced is based on the revenue growth and earnings per share outlook in the results statement. The official published figures did not include a comparison between quarterly net income and analysts' expectations.