Siemens Expected to Post Lower Profit as Investors Focus on China Demand -- Earnings Preview

Dow Jones
Feb 11
 

By Nina Kienle

 

Siemens is scheduled to report first-quarter results on Thursday. Here is what you need to know.

 

REVENUE FORECAST: The German industrial company is expected to post 19.10 billion euros ($22.72 billion) in revenue for the quarter ended December, according to a company-provided consensus. In the year-earlier period, Siemens's revenue was 18.35 billion euros.

 

NET PROFIT FORECAST: Net profit is expected at 1.60 billion euros, according to the same consensus, down from the 3.71 billion euros it reported in the prior-year period.

 

Siemens shares were 0.08% higher in early afternoon European trading at 258.3 euros and 8.01% higher year to date.

 

WHAT TO WATCH

 

-- DIVISIONS: The smart infrastructure division remains well supported, with strength in both data centers and grid, Bank of America Securities analysts said. However, given the strong comparable base in segments like data centers, the analysts model a slight moderation in organic revenue growth this fiscal year to 8% year-on-year from 9% year-on-year in fiscal 2025. Investor focus will also be on orders in digital industries and whether demand in China has started to improve, Morgan Stanley analysts said.

-- SOFTWARE: Software valuations remain the number one talking point with investors, following the derating of the software sector, driven by artificial-intelligence concerns. The derating reflects deepened concerns related to disruption to software business models from AI, Morgan Stanley analysts said. Nevertheless, Bank of America Securities analysts see industrial software as a more defensive part of the software market, given that the products require a significant amount of implementation, customization and are largely physics-based models. Citi analysts believe the concern for Siemens is overdone, as the combined software and control offering is a major differentiator and enabler in physical AI.

-- BUYBACKS: The potential for an increased Siemens share-buyback has also been an investor debate. While the formal size of the 6 billion euro buyback until 2029 is unchanged, the monthly buybacks have accelerated to eye-catching levels, Morgan Stanley analysts said.

-- DISPOSAL: Morgan Stanley analysts continue to see Siemens's portfolio simplification as positive, while Citi analysts see the disposal of the stake in Healthineers as the next major catalyst.

 

Write to Nina Kienle at nina.kienle@wsj.com

 

(END) Dow Jones Newswires

February 11, 2026 09:46 ET (14:46 GMT)

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