TLDR
- Siemens raised its 2026 revenue outlook to the upper half of 6-8% growth guidance after a strong Q1 beat, powered by AI and data center demand
- Q1 orders jumped 10% to $21.5 billion, with U.S. orders surging 54% year-over-year driven by data center and building software sales
- Data center segment revenue grew 35% as demand “materially exceeded expectations” for cloud and AI infrastructure buildout
- JPMorgan raised its price target on Siemens to EUR 325 from EUR 300, maintaining an Overweight rating on the stock
- Net income fell to $2.6 billion from $5.2 billion year-ago due to one-time gain from Innomotics sale in Q1 2025
Siemens AG delivered a first quarter that crushed expectations and prompted the industrial technology giant to lift its full-year outlook. The catalyst? Explosive demand for AI and data center infrastructure.
The Germany-based company now expects to reach the upper half of its revenue growth guidance of 6-8%. CFO Ralf Thomas announced the raised outlook on Thursday’s earnings call.
Siemens also boosted its earnings per share guidance by 20 euro cents. The moves reflect confidence in sustained momentum across its business segments.
Orders Explode on U.S. Data Center Demand
First quarter orders increased 10% across Siemens‘ three divisions to $21.5 billion compared to last year. The smart infrastructure division posted record-high growth.
U.S. orders exploded 54% year-over-year. The surge came from strong data center and building software demand, Thomas said.
Data center revenue alone grew 35% during the quarter. CEO Roland Busch said several large orders came from U.S. customers building out cloud and AI infrastructure.
“Data centers demand has materially exceeded our expectations,” Busch stated on the call.
Financial Performance Shows Mixed Results
Quarterly revenue climbed 4% to $22.7 billion from a year ago. Net income totaled $2.6 billion for the quarter ending December 31.
That figure represents roughly half of what Siemens earned in the same period last year. The year-ago quarter included a big gain from selling electric motor supplier Innomotics for $4.2 billion.
Digital industries achieved double-digit growth in orders and revenue despite market softness. The mobility segment also saw growth in orders and revenue year-over-year.
AI Operating System Push
Siemens is partnering with Nvidia to develop AI-driven manufacturing using digital twin and simulation technologies. Busch described the strategy as building “the industrial AI operating system throughout the entire value chain.”
The company serves major customers including Boeing, General Motors, Microsoft and Apple. These clients rely on Siemens software and technology for industrial operations.
JPMorgan analyst Phil Buller raised the firm’s price target on Siemens to EUR 325 from EUR 300. The analyst maintained an Overweight rating on the shares following the earnings report.
Siemens recently divested its U.S.-based airport logistics business to Vanderlande for $355.9 million. The company secured a contract to deliver more than 200 automated trains for Copenhagen’s S-Bane network.
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