TLDR
- Siemens increased its 2026 revenue forecast to the upper half of its 6-8% growth range following a robust first quarter, fueled by AI and data center demand.
- First-quarter orders rose 10% to $21.5 billion, with U.S. orders skyrocketing 54% year-over-year on the back of data center and building software sales.
- Revenue from the data center segment increased 35% as demand for cloud and AI infrastructure buildout “materially exceeded expectations.”
- JPMorgan lifted its price target for Siemens to EUR 325 from EUR 300, while keeping an Overweight rating on the stock.
- Net income dropped to $2.6 billion from $5.2 billion a year ago, due to a one-time gain from the sale of Innomotics in Q1 2025.
Siemens AG reported a first-quarter performance that far surpassed expectations, leading the industrial technology leader to raise its full-year forecast. The driving force was explosive demand for AI and data center infrastructure.
The German company now anticipates achieving the upper half of its 6-8% revenue growth target. CFO Ralf Thomas announced the upgraded outlook during Thursday’s earnings call.
Siemens also increased its earnings per share guidance by 20 euro cents. These adjustments demonstrate confidence in continued momentum throughout its business units.
Orders Explode on U.S. Data Center Demand
Orders in the first quarter grew 10% across three divisions to $21.5 billion year-over-year. The smart infrastructure division achieved record-high growth.
Orders from the United States surged 54% compared to the previous year. Thomas attributed this jump to robust demand for data centers and building software.
Data center revenue expanded by 35% during the quarter. CEO Roland Busch noted that several major orders originated from U.S. clients investing in cloud and AI infrastructure.
“Data centers demand has materially exceeded our expectations,” Busch stated on the call.
Financial Performance Shows Mixed Results
Quarterly revenue increased 4% to $22.7 billion from the prior year. Net income for the quarter ending December 31 was $2.6 billion.
This amount is approximately half of Siemens’ earnings in the same quarter last year. The prior-year period included a significant gain from the $4.2 billion sale of electric motor supplier Innomotics.
The digital industries unit posted double-digit growth in both orders and revenue despite market weakness. The mobility segment also experienced year-over-year growth in orders and revenue.
AI Operating System Push
Siemens is collaborating with partners to advance AI-driven manufacturing through digital twin and simulation technologies. Busch characterized the strategy as creating “the industrial AI operating system throughout the entire value chain.”
The company’s major clients include Boeing, General Motors, Microsoft, and Apple. These customers depend on Siemens’ software and technology for their industrial operations.
JPMorgan analyst Phil Buller increased the firm’s price target on Siemens to EUR 325 from EUR 300. The analyst reaffirmed an Overweight rating on the shares after the earnings release.
Siemens recently sold its U.S.-based airport logistics business to Vanderlande for $355.9 million. The company also won a contract to supply over 200 automated trains for Copenhagen’s S-Bane network.
