Siemens AG announced on Thursday that it has once again raised its performance guidance for the 2026 fiscal year, citing continuously strong demand for power equipment driven by data center expansion. The company expressed an optimistic outlook for full-year growth.
The revised guidance shows a significant upward adjustment. According to the latest announcement, Siemens AG now expects comparable revenue growth for fiscal 2026 to be between 14% and 16%, up from the previous forecast of 11% to 13%. The profit outlook is even more robust: the company anticipates a full-year net profit of approximately €4 billion, notably higher than the previous target range of €3 billion to €4 billion. Pre-tax free cash flow is projected to increase substantially to around €8 billion, up from the earlier estimate of €4 billion to €5 billion.
Regarding profit margins, the company forecasts its margin before special items will rise to a range of 10% to 12%, compared to the prior guidance of 9% to 11%. This optimistic revision is primarily attributed to the strong performance of its two core businesses: Grid Technologies and Gas Services. Notably, the revenue growth expectation for the Grid Technologies division has been significantly increased to 25%-27%, up from 19%-21%, with its projected profit margin rising to 18%-20%.
The primary driver behind this guidance upgrade is the explosive growth in demand for power infrastructure from AI data centers. Data indicates that in the first quarter of 2026 alone, approximately 25% of the demand came directly from data center clients. Orders for gas turbines are expected to peak in 2026, as developers are securing equipment for over 60 gigawatts of new gas-fired power generation capacity.
The President of Siemens AG North America stated that turbine supply has become a major bottleneck for the launch of new power generation projects, with delivery schedules for new orders now extending close to 2030. In response to this situation, the company has announced a $1 billion investment to expand its turbine and grid equipment manufacturing capacity in the United States.
Concurrent with the guidance revision, the company released preliminary results for its second fiscal quarter. The figures show quarterly orders reached €17.749 billion, a 29.5% year-over-year increase, significantly surpassing market expectations. Quarterly revenue was €10.294 billion, up 8.9% compared to the same period last year. Profit before special items was €1.164 billion, a 28% increase year-over-year, with the profit margin improving to 11.3% from 9.1% a year ago.
It is noteworthy that the previously loss-making wind power division saw its losses narrow substantially, decreasing to €44 million from €249 million in the prior-year period, bringing it close to breakeven. This provides additional support for the improvement of the group's overall profitability.
Boosted by this news, the share price of Siemens AG listed in Frankfurt rose over 6% during trading, reaching a new all-time high. The company's market capitalization climbed to approximately €158 billion, making it the third-largest listed company in Germany.
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