Siemens AG reported a strong set of second-quarter results for fiscal year 2026 on May 13, with orders climbing 18% on a comparable basis and profit coming in ahead of market expectations — prompting the German industrial giant to raise its full-year growth and margin guidance for two of its key divisions while keeping its overall group profit target unchanged.
The results cover the January 1 to March 31, 2026 quarter and reflect what CEO Roland Busch described as a successful performance despite a very demanding geopolitical environment.
Key Q2 FY2026 headline numbers
Orders rose 11% on a nominal basis to €24.1 billion from €21.6 billion in Q2 FY2025, and 18% on a comparable basis excluding currency translation and portfolio effects — with double-digit order growth in most industrial businesses. The book-to-bill ratio stood at 1.22, indicating that new orders continue to meaningfully exceed revenue — a healthy pipeline signal. Revenue reached €19.8 billion, flat on a nominal basis but up 6% on a comparable basis, driven by Smart Infrastructure and Digital Industries.
Profit for the Industrial Business came in at €3.0 billion with a profit margin of 15.4% — or 15.9% excluding severance charges. The prior year figure of €3.2 billion had benefited from a €0.3 billion one-time gain related to exiting a business at Smart Infrastructure, making the underlying comparison more favourable than the reported decline suggests. Net income reached €2.2 billion, with basic EPS of €2.60 and EPS pre purchase price allocation accounting of €2.81. Free cash flow from continuing and discontinued operations rose sharply by 71% to €1.7 billion.
Which divisions drove the performance?
Digital Industries was the standout performer. Orders rose 12% and revenue grew 8% — including 18% growth in the software business driven by larger contract wins in product lifecycle management and electronic design automation software. Profit surged 35% to €857 million with margin expanding dramatically to 18.5% from 14.8% in Q2 FY2025. The software business made the largest contribution to improvement, though results included €43 million in integration costs from the Altair and Dotmatics acquisitions.
Smart Infrastructure continued its exceptional run, recording another quarterly record-high order intake — up 26% nominally and 35% on a comparable basis — driven by strong demand from data centre and semiconductor customers predominantly in the US, alongside the electrification and electrical products businesses. Revenue grew 3% nominally and 10% on a comparable basis. Profit margin of 18.6% — while below the prior year’s 24% — reflects the fact that Q2 FY2025 had included a €315 million one-time gain from exiting the wiring accessories business.
Mobility saw orders jump 38% on strong large contract wins including a consortium contract for automated trains in Denmark and dual-mode electric-battery locomotives in France. However, revenue declined 5% and profit fell 28% due to tariff impacts in the US and delayed call-offs under framework agreements for large rail infrastructure projects.
Siemens Healthineers posted a more challenging quarter, with orders down 8% and revenue down 4% on a nominal basis, though both grew on a comparable basis. Profit declined 14% primarily due to increased tariffs and negative currency effects in the imaging and precision therapy businesses, alongside structural changes in the China diagnostics market.
Guidance raised for two divisions
Siemens raised its full-year FY2026 guidance for Digital Industries and Smart Infrastructure — two of its highest-margin and fastest-growing businesses.
Digital Industries now targets comparable revenue growth of 7% to 10%, upgraded from the previous 5% to 10% range, with profit margin guidance of 17% to 19%, raised from the prior 15% to 19%. Smart Infrastructure now targets comparable revenue growth of 8% to 10%, upgraded from 6% to 9%, while maintaining its profit margin guidance of 18% to 19%.
Mobility’s comparable revenue growth guidance was reduced to 5% to 7% from the previous 8% to 10%, reflecting tariff headwinds and project timing delays.
For the overall Siemens Group, full-year guidance was confirmed — comparable revenue growth of 6% to 8%, a book-to-bill ratio above 1, and EPS pre PPA in the range of €10.70 to €11.10.
AI as a growth driver
CEO Roland Busch specifically highlighted Siemens’ Eigen Engineering Agent as an expansion of the company’s leadership in industrial AI, describing AI as a clear growth driver for hardware, software, and services across the business. The comment reflects Siemens’ positioning at the intersection of industrial automation and artificial intelligence — a combination that is becoming increasingly central to the company’s growth narrative as manufacturing clients globally accelerate digital transformation investment.
India angle
Siemens AG’s strong global results are relevant for Indian markets through its listed Indian subsidiary Siemens Limited, which mirrors many of the parent’s business segments including smart infrastructure, digital industries, and mobility. Smart Infrastructure’s record order intake — driven significantly by data centre and energy infrastructure demand — is consistent with the strong order momentum that Siemens India has been reporting, supported by India’s accelerating infrastructure buildout and energy transition investments.
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