I remain invested.
High demand for software and the data center boom are driving Siemens’ business. Its two future core businesses are growing at double-digit rates.
Munich. Siemens is entering its corporate restructuring on a stronger footing. In the past quarter, the technology conglomerate posted record results in earnings and order intake. “Our technological leadership across all businesses, our clear focus on industrial AI, and our strong positioning in attractive markets are driving our profitable growth,” said CEO Roland Busch on Thursday, raising the profit forecast.
Siemens is currently in a sensitive phase of corporate development. The new structure is set to be implemented on October 1 as part of the “One Tech Company” strategy. However, there is still uncertainty within the company because thousands of employees do not know what titles and responsibilities they will have in the future.
It helps that business is going well. On a comparable basis, revenue rose by 8 percent to 20.8 billion euros in the third quarter of 2025/26, i.e., from April to June. Order intake increased by 13 percent to 27.9 billion euros for the first time. Operating profit in the industrial business improved by 25 percent to 3.5 billion euros, corresponding to a margin of 17.3 percent.
As a result, the group—listed on Germany’s leading stock index, the DAX—exceeded capital market expectations. Analysts had forecast, on average, revenue of 20.6 billion euros and an operating profit of 3.2 billion euros.
With its new strategy, Siemens aims to evolve even more strongly into an integrated technology group. To this end, the divisions are to collaborate more closely—for example, on technology platforms—and present a unified front to customers. In sales, more employees are to be assigned to direct customer contact, and CEO Busch also plans to improve marketing.
Automation Technology in the Spotlight for Investors
Siemens is deliberately restructuring now that business is going well. “We are clearly acting from a position of strength,” Busch told the Handelsblatt. He said companies should change when things are going well—“not wait until things get worse.”
For the full fiscal year (ending September 30), Siemens continues to expect revenue growth of six to eight percent on a comparable basis. The Smart Infrastructure division is expected to grow slightly faster than previously forecast. In terms of profit after taxes, the company now expects earnings of 11.20 to 11.50 euros before special items (previously: 10.70 to 11.10 euros).
Investors are paying particularly close attention to the Digital Industries (DI) division, which focuses on automation technology and industrial software. Siemens is the global market leader in both fields—but disruptions are on the horizon due to advances in artificial intelligence.
In the third quarter, DI’s revenue rose by 10 percent on a comparable basis to 4.9 billion euros. The software business grew disproportionately by 15 percent to 1.8 billion euros. Earnings improved by 44 percent to 923 million euros, corresponding to a margin of 18.7 percent.
By way of comparison: U.S. competitor Rockwell Automation, which the company in Munich is keeping a close eye on, increased its revenue in the third quarter of 2025/26 (also ending September 30) by $2.3 billion on a comparable basis. Operating income improved by 23 percent to $516 million. The margin improved to 22.3 percent. However, operating margins are only comparable to a limited extent.
A Test for a Potential CEO Successor
The second core division of the future Siemens Group is Smart Infrastructure, which encompasses smart building technology and energy management. Here, revenue rose by 13 percent to 6.4 billion euros, primarily thanks to the boom in new data centers. Order intake even rose by 42 percent to 8 billion euros. Earnings improved by 19 percent to 1.3 billion euros, with a margin of 20 percent.
SI has recently been led by Peter Körte, Head of Technology and Strategy. Industry sources say it will be a challenge for him to continue the success story of his predecessor, Matthias Rebelius, who had consistently expanded the company’s market position and profitability over the years.
Everyone realizes that this business is also cyclical and that the boom in orders will eventually come to an end, says an insider. So far, however, business continues to go well.
Körte is expected to prove himself operationally at the helm of SI. Like DI CEO Cedrik Neike, he is considered a potential successor to CEO Busch, whose contract runs until mid-2030. So far, however, Körte has lacked experience in leading a large business. According to information from the *Handelsblatt* sourced from supervisory board circles, Körte may have to relinquish his title as Chief Technology Officer, as he currently holds too many leadership positions.
