MW Siemens boosts outlook as AI orders pour in and its software business defies gloom

By Steve Goldstein

President and CEO of Siemens AG Roland Busch (L) and President and CEO of NVIDIA Jensen Huang speak during a Siemens news conference at the annual Consumer Electronics Show (CES) in Las Vegas, Nevada, on January 6, 2026. Siemens lifted its profit outlook on Thursday.

Siemens, Germany's largest industrial that builds the power distribution systems and cooling systems that are required for state-of-the-art data centers, on Thursday lifted its profit outlook.

Siemens now says it'll earn between EUR10.70 and EUR11.10 a share, up from a previous range of EUR10.40 to EUR11, and above consensus of EUR10.90 after a fiscal first-quarter where revenue rose 8% and orders rose 10%. Siemens reiterated its organic sales growth target of 6% to 8% for the year.

CEO Roland Busch said the company's order growth was "supercharged" by large data-center orders, mainly in the U.S. to build out cloud and AI infrastructure.

Siemens shares (XE:SIE) jumped 7%. The company, which is neck-and-neck with SAP for the crown of Germany's largest by valuation, is now up 14% on the year.

Busch also tried to quell fears about its software business, where revenue of EUR1.66 billion edged past consensus expectations.

Siemens has a Plano, Tex.-based subsidiary that makes software for industrial and engineering applications. An analyst, Ben Uglow of OxCap Analytics, asked Busch for his take on the turmoil that has sent the iShares Expanded Tech-Software Sector ETF IGV down 28% from its September peak.

"Basically [there are] three levels of software and I'll make it rather simple," said Busch, according to a FactSet transcript. "The first one is, call it, call center kind of software, which is more the interaction with human beings and the like, chat bots. This is already gone. I mean, this was AI dominated, so take that off," he said.

The next is what he calls "deterministic" software, which is based on a strong database but performs repetitive tasks.

He says AI can help accelerate physics simulations by up to 100,000 times - but that humans need to double-check results. He thinks AI will help the adoption of the software.

What is "definitely" a safe bet, he says, is the company's product lifestyle management software like Teamcenter.

-Steve Goldstein

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February 12, 2026 05:47 ET (10:47 GMT)

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