TLDR
- Siemens lifted 2026 revenue guidance to upper half of 6-8% growth range after exceeding Q1 expectations
- Q1 orders increased 10% to $21.5 billion with U.S. orders soaring 54% year-over-year on data center demand
- Data center revenue jumped 35% as cloud and AI infrastructure orders poured in from North American customers
- Net income reached $2.6 billion on revenue of $22.7 billion for quarter ending December 31
- JPMorgan analyst raised price target to EUR 325 from EUR 300 with Overweight rating maintained
Siemens AG exceeded first quarter estimates and raised its 2026 forecast Thursday. The German industrial technology company credited surging AI and data center infrastructure orders.
The firm now expects to hit the upper half of its 6-8% revenue growth guidance. CFO Ralf Thomas shared the update during the quarterly earnings call.
Siemens also increased earnings per share guidance by 20 euro cents. The move signals management confidence in continued business strength.
Record Quarter Driven by U.S. Infrastructure Boom
Orders across Siemens‘ three divisions rose 10% to $21.5 billion in the quarter. The smart infrastructure business delivered record-breaking growth numbers.
U.S. orders skyrocketed 54% versus the prior year period. Thomas said data center and building software sales fueled the dramatic increase.
Data center revenue alone expanded 35% during the quarter. CEO Roland Busch noted several major U.S. contracts for cloud and AI infrastructure projects.
“Data centers demand has materially exceeded our expectations,” Busch said on the call.
Financial Performance Shows Solid Gains
Quarterly revenue advanced 4% to $22.7 billion year-over-year. Net income for the period totaled $2.6 billion.
The company posted $5.2 billion in net income during last year’s comparable quarter. That figure included a one-time $4.2 billion gain from selling Innomotics.
Digital industries logged double-digit gains in both orders and revenue. The performance came despite weakness in some industrial end markets.
The mobility division also delivered order and revenue growth compared to last year. This segment handles rail and road technology solutions.
Wall Street Reaction and Strategic Partnerships
JPMorgan analyst Phil Buller lifted his price target to EUR 325 from EUR 300. He kept an Overweight rating on shares following the earnings release.
Siemens is collaborating with Nvidia on AI-driven manufacturing technology. The partnership focuses on digital twin systems and advanced simulation capabilities.
Busch characterized the effort as creating “the industrial AI operating system throughout the entire value chain.” The platform covers everything from design through supply chain management.
The company recently divested its U.S. airport logistics operation to Vanderlande for $355.9 million. Siemens secured a separate deal to supply over 200 automated trains for Copenhagen’s S-Bane rail network.
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