Siemens Lifts Growth Targets as Orders Hit Record €108.2 Billion

Siemens raised its medium-term growth targets on November 12, 2026, after comparable orders climbed 25% to a record €108.2 billion for the fiscal year ended September 30, 2026. The company tied its higher ambitions to Industrial AI, digitalization, electrification and data-center demand.

For the group excluding Siemens Healthineers, the comparable revenue-growth target now stands at 7%–11%, up from 6%–9%. The EPS pre PPA ambition moved from high-single-digit to double-digit growth. EPS pre PPA is basic earnings per share before purchase price allocation accounting; comparable growth strips out currency translation and portfolio effects.

What's driving the order record?

Smart Infrastructure delivered the clearest quarterly evidence of data-center demand. Its fourth-quarter orders rose 39% on a comparable basis to €8.7 billion, with larger electrification and electrical-products contracts from data-center customers predominantly in the United States and Europe. Comparable revenue increased 15% to €7.2 billion as those businesses worked through their large backlogs.

Siemens' investor presentation reported triple-digit fiscal 2026 order growth in data centers. Data centers now account for 20% of Smart Infrastructure's revenue exposure. That makes them the division's second-largest vertical behind industrial customers, with momentum the company attributes to the AI build-out.

Large rail contracts also lifted the group total. Mobility orders rose more than 200% to €10.7 billion in the fourth quarter. The quarter included a €2.4 billion German order for high-speed trains and maintenance.

Digital revenue kept pace with the hardware side. Revenue from Siemens' digital business — vertical-specific software, IoT and digital services — rose 16% to €10.9 billion. Siemens also reported that its Eigen Engineering Agent made engineering twice as fast at machine builder ANDRITZ Metals, handing the company a customer proof point for its Industrial AI strategy.

Why did record profit meet lower net income?

Industrial Business profit increased 13% to a record €13.3 billion in fiscal 2026. Net income still fell to €9.5 billion from €10.4 billion. The prior-year figure included a €2.1 billion gain on the sale of Innomotics, which explains why record industrial profit didn't translate into higher bottom-line earnings.

What does fiscal 2027 look like?

Siemens enters fiscal 2027 with a record €143 billion order backlog. The company forecasts:

• Comparable revenue growth of 9%–11%
• EPS pre PPA of €10.20–€10.80, against a comparable fiscal 2026 baseline of €9.27 excluding Siemens Healthineers

The outlook excludes Healthineers because Siemens intends to deconsolidate the business through a direct spin-off during fiscal 2027. That makes the €9.27 figure, not the reported group result, the relevant comparison for the earnings outlook.

Management assumes continued global economic expansion, driven mainly by investment in AI and digital infrastructure, public investment programs and a pickup in industrial activity. Siemens also expects capital intensity to be materially higher than in fiscal 2026 — measured by capital spending including operating leases against depreciation and amortization — primarily because of Smart Infrastructure capacity expansion.

The higher targets put backlog conversion and capacity expansion at the center of fiscal 2027's operational test. The planned Healthineers spin-off will also redraw the business perimeter against which Siemens' growth and earnings are measured.