Siemens boosts 2026 profit outlook on AI-driven data centre demand, shares jump
Siemens logo is seen in this illustration taken February 16, 2025. REUTERS/Dado Ruvic/Illustration
ZURICH, Feb 12 : Siemens raised its full-year profit outlook on Thursday after first-quarter profit exceeded expectations, boosted by surging demand for AI-driven data-centre infrastructure and sending shares up over 6 per cent in early trading.
CEO Roland Busch said the data-centre business pushed up its revenue by more than a third in the quarter through December, and that "demand for data centres has considerably exceeded our expectations."
"We're confident we'll be able to maintain this pace throughout fiscal 2026," he told reporters after the results were announced.
Shares surged 6.1 per cent in morning trading in Frankfurt, and were the biggest gainer on the Stoxx Europe 600 Industrials index which was up 0.9 per cent.
During its first quarter through December, industrial profit jumped 15 per cent to 2.90 billion euros ($3.44 billion), beating analysts' consensus forecasts for 2.64 billion euros, while net profit of 2.22 billion euros also beat expectations.
As a result, Siemens raised its basic earnings outlook for its full year through September to a range of 10.70 to 11.10 euros per share from 10.40 to 11.00 euros.
SALES AND ORDERS GROW IN FIRST QUARTER
Siemens said first-quarter sales rose 4 per cent to 19.14 billion euros, beating the 19.09 billion forecast of analysts, while orders rose 7 per cent.
Deutsche Bank said the company had delivered robust results, led by a strong performance from its digital industries factory automation unit, where orders for software and automation businesses were doing well.
"This is a promising start to the year," said the bank's analyst Gael de-Bray.
Busch said artificial intelligence had been a strong growth driver for the company.
"We're scaling industrial AI in our core industries," he said. "By integrating AI deeply into design, development, products and operations, we’re adding measurable value for our customers."
Among Siemens' AI products are software which helps 'train' logistics robots to recognise different box sizes, allow operators to speak to machines to identify and fix mechanical problems and also to speed up the design process for new products from weeks to days.
Chief Financial Officer Ralf Thomas said Siemens was seeing moderate growth from the automotive industry, but momentum was building from defence, aerospace and pharmaceuticals sector customers and machine builders.
Still, investment sentiment remained "pretty shaky," Thomas said, with continuing debates over tariffs and geopolitics being a damper on spending.
($1 = 0.8431 euros)
