Siemens Aktiengesellschaft ETR: SIE reported record third-quarter results for fiscal 2026, supported by strong demand for data center infrastructure, industrial software and automation. The company raised its full-year earnings outlook after orders, revenue, industrial profit and free cash flow all increased.
Chief Executive Officer Roland Busch said Siemens delivered “another record third quarter” despite a volatile geopolitical environment. Group orders rose 14% from the prior-year quarter to an all-time high of €27.9 billion, producing a book-to-bill ratio of 1.34. The company’s order backlog reached a record €132 billion.
Revenue increased 8%, with all regions contributing. The Americas grew 11%, led by the U.S.; Asia-Australia rose 10%, aided by 13% growth in India; and Europe, the Middle East and Africa increased 6%.
Industrial business profit reached a record €3.5 billion, resulting in a 17.3% margin. Basic earnings per share before purchase price allocation accounting rose to €3.14, while free cash flow increased more than 40% year over year to more than €4.1 billion.
Smart Infrastructure Leads Growth
Smart Infrastructure posted the strongest order performance among Siemens’ industrial businesses. Orders increased 42% to a record €8 billion, with a book-to-bill ratio of 1.25. Its order backlog reached €23.7 billion.
The electrical products and electrification businesses recorded order growth of 58% and 55%, respectively, driven in part by major data center contracts in the U.S. and Europe. Excluding data center-related business, Smart Infrastructure order growth was still in the high teens, according to Chief Financial Officer Veronika Bienert.
Smart Infrastructure revenue rose 13%, including 20% growth in electrification and 18% growth in electrical products. Its profit margin expanded 120 basis points year over year to 20%. Bienert said an impairment related to the e-mobility business partly offset positive tariff-refund effects; excluding those net effects, the operational margin was 19.5%.
Demand from U.S. data center and semiconductor customers helped lift Smart Infrastructure orders in the U.S. by 81%. Siemens also cited large data center projects in Finland and Spain, while its China business continued to recover.
Given backlog visibility and growth through the first nine months, Siemens increased Smart Infrastructure’s full-year comparable revenue-growth forecast to 10% to 11%, from its previous outlook. The company also raised the unit’s margin target by 50 basis points to 18.5% to 19.5%.
Digital Industries Sees Automation Recovery
Digital Industries recorded a 9% increase in orders to €4.9 billion, while revenue rose 10%. Orders in automation increased 11%, led by short-cycle business, and the unit’s automation book-to-bill ratio was 1.01.
Bienert said market dynamics had improved, including an upswing in machine-building demand in China, although capacity utilization in some key European industrial markets remained relatively low. In China, Digital Industries automation orders rose 17% and revenue increased 9%, led primarily by motion-control products.
The software business recorded 5% order growth and 15% revenue growth. Product lifecycle management was supported by a large automotive original equipment manufacturer order, while electronic design automation order activity was softer as expected. Electronic design automation revenue grew more than 30% and was a key contributor to the unit’s results.
Digital Industries’ profit margin improved to 18.7%, aided by a higher contribution from electronic design automation revenue, economies of scale in automation, and the integration of Altair and Dotmatics. Integration-related costs from those acquisitions reduced the margin by 70 basis points in the quarter.
The business generated nearly €1.5 billion in free cash flow, an all-time quarterly high, Siemens said. The company maintained its fiscal 2026 guidance for Digital Industries, including comparable revenue growth of 7% to 10% and a margin range of 17% to 19%.
Mobility Backlog Expands
Siemens Mobility reported orders of €7.6 billion and a book-to-bill ratio of 2.35, lifting its backlog to €58 billion. The company said the backlog has an attractive gross-margin profile.
Revenue at Mobility rose 6%, led by low-double-digit growth in rail infrastructure. Its profit margin was 8.6%, affected by a less favorable project mix and somewhat higher severance costs than a year earlier.
Siemens confirmed Mobility’s fiscal-year revenue-growth outlook of 5% to 7% and margin range of 8% to 10%, while expecting the final margin outcome toward the lower end of that range. For the fourth quarter, Siemens expects comparable revenue growth of 9% to 11% on backlog execution.
The company also expects to book the majority of a €3 billion contract with Italo Holding in the fourth quarter. The contract includes rolling stock and a 30-year service agreement for the German market.
Data Centers and Industrial AI Remain Strategic Focus
Busch said data center demand remains a major growth driver as cloud and AI infrastructure expands. Siemens generated nearly €6 billion in data center orders during the first nine months of fiscal 2026, representing triple-digit percentage growth from the prior year. Revenue from the market rose more than 50% to €3.1 billion.
The company said its backlog and existing agreements provide visibility into 2027 and beyond, though large contracts could create volatility in quarterly order intake. Busch said nine of the world’s 10 largest data center providers use Siemens products or services.
Siemens is also preparing for an eventual transition toward 800-volt direct-current data center architectures, which Busch said is likely to occur gradually over the next four to five years. The company expects initial pilots in 2027.
In industrial AI, Siemens said digital-business revenue rose 18% on a nominal basis in the first nine months, exceeding its stated 15% ambition level. Busch said the company’s Eigen Engineering Agent has been adopted by hundreds of customers in more than 30 countries, while Siemens has launched Intelligence Center X to help customers deploy and govern industrial AI applications at scale.
Raised Group Outlook and Healthineers Plan
Following the nine-month performance, Siemens raised its fiscal 2026 basic EPS pre-PPA outlook to €11.20 to €11.50, an increase of €0.45 at the midpoint. It continued to expect group comparable revenue growth in the upper half of its previously stated 6% to 8% range.
Bienert said Siemens remains on track for a double-digit full-year free-cash-flow return on revenue. Industrial net debt to EBITDA declined to 0.6, which she said supports continued capital allocation and shareholder returns. Siemens began a new share repurchase program of up to €6 billion in July and bought back €400 million of shares during its first month.
Separately, Siemens said it received binding decisions from German tax authorities on issues related to the planned deconsolidation of Siemens Healthineers. The company maintained its timeline to seek shareholder approvals at the annual meetings of Siemens and Siemens Healthineers in February 2027. Busch and Bienert also said they will resign from the Healthineers supervisory board at its next annual shareholder meeting, reducing Siemens managing board representation on that board from three positions to one.
About Siemens Aktiengesellschaft (ETR:SIE)
Siemens Aktiengesellschaft, a technology company, focuses in the areas of automation and digitalization in Europe, Commonwealth of Independent States, Africa, the Middle East, the Americas, Asia, and Australia. It operates through Digital Industries, Smart Infrastructure, Mobility, Siemens Healthineers, and Siemens Financial Services (SFS) segments. The Digital Industries segment provides automation systems and software for factories, numerical control systems, servo motors, drives and inverters, and integrated automation systems for machine tools and production machines; process control systems, machine-to-machine communication products, sensors and radio frequency identification systems; software for production and product lifecycle management, and simulation and testing of mechatronic systems; and the Mendix cloud-native low-code application development platform.
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