Siemens AG shares climbed more than 6% during Thursday's trading session, reaching a historic peak, after the company lifted its annual profit guidance. The German industrial group cited stronger-than-anticipated orders for data-center equipment and a recovery in factory automation as key drivers behind the improved forecast.
Financial Performance and Outlook
The company reported a 10% increase in comparable orders for its fiscal first quarter, totaling €21.4 billion. Revenue rose 8% to €19.1 billion, while profit from its industrial business jumped 15% to €2.9 billion, achieving a margin of 15.6%. Siemens now anticipates earnings per share before purchase price allocation adjustments to range between €10.70 and €11.10 for fiscal 2026.
CEO Roland Busch noted that demand for data-center infrastructure "significantly surpassed our expectations." The company's order backlog expanded to a record €120 billion. However, Chief Financial Officer Ralf Thomas cautioned that geopolitical tensions and potential tariffs continue to create uncertainty, describing overall investment sentiment as "fragile."
Market Impact and Investor Focus
The rally briefly propelled Siemens past software rival SAP to become Germany's most valuable publicly traded company by market capitalization, with shares touching €271.6. The stock's surge reflects investor optimism that sustained capital expenditure in data centers and industrial automation is offsetting broader economic concerns in Europe.
Attention now turns to Siemens' annual shareholder meeting in Munich, where management will address investors directly. Key discussion points are expected to include the proposed dividend of €5.35 per share for fiscal 2025 and the company's capital return strategy. The next significant update will come with the release of second-quarter results on May 13.
Analysts view the raised guidance as a positive signal for European industrial spending. However, they note that the upgraded outlook leaves little room for disappointment—any slowdown in data-center orders or factory automation recovery could quickly pressure the stock.
