Siemens AG finds itself in a curious position. The industrial conglomerate has just reported what can only be described as a stellar first quarter for its 2026 fiscal year, simultaneously raising its annual guidance and pushing forward with its most significant corporate restructuring in years. Yet, its share price has been moving in the opposite direction, recently slipping below its 200-day moving average. This divergence between operational excellence and market performance presents a clear paradox for investors.
A Broad-Based Surge in Orders and Profit
The Munich-based industrial giant kicked off its fiscal year with impressive momentum. On a comparable basis, new orders surged by 10% to reach €21.4 billion. Revenue followed suit, climbing 8% to €19.1 billion. A key highlight was the contribution to growth from every single industrial division.
Industrial profit hit €2.9 billion, achieving a robust margin of 15.6%. Adjusted earnings per share came in at €2.80. This figure is notably higher than the €2.22 from the prior-year quarter, after adjusting for the one-time gain of €2.64 per share related to the sale of Innomotics. Furthermore, a book-to-bill ratio of 1.12 indicates that revenue growth is poised to continue.
Smart Infrastructure and Data Centers Fuel Growth
The Smart Infrastructure division emerged as a primary growth engine, largely driven by soaring demand for data center solutions. Segment revenue accelerated by an impressive 35%, fueled by several major orders from the United States. These contracts, for cloud and AI infrastructure projects with a total value of €1.8 billion, propelled US order volume upward by 54% alone.
In response to this strong start, Siemens management promptly upgraded its outlook. The forecast for adjusted earnings per share was lifted from a range of €10.40–€11.00 to a new range of €10.70–€11.10. For revenue growth, the company now anticipates performance in the upper half of its original 6% to 8% target corridor.
A Landmark Restructuring Takes Shape
Alongside its operational success, Siemens is advancing its most profound corporate overhaul in recent memory. The management and supervisory boards have approved a plan to divest the company’s majority stake in its medical technology subsidiary, Siemens Healthineers. The current proposal involves spinning off approximately 30% of Healthineers shares directly to Siemens shareholders.
This transaction would result in Siemens relinquishing its controlling interest, eventually holding Healthineers only as a financial investment in the medium term. Specific details regarding the timeline and structure are expected in early Q2, though final approval from shareholder meetings and regulatory authorities is still pending.
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In a separate leadership change, Veronika Bienert will assume the role of CFO on April 1, succeeding Ralf P. Thomas, who is departing after more than three decades with the group.
Strategic Moves: AI and Share Buybacks
Siemens is also making significant strategic investments. The company is committing roughly €200 million to transform its Amberg facility into a fully AI-controlled factory by 2030. A deepened partnership with NVIDIA aims to create the world’s first autonomous, self-learning production plants. The Electronics Factory in Erlangen will serve as the initial reference project starting this year.
Meanwhile, the company’s share repurchase program is progressing ahead of schedule. Out of a total authorization exceeding €6 billion, nearly €4.4 billion has already been utilized. In March, 18 million treasury shares will be retired, reducing the share capital to 782 million shares.
The Market’s Hesitant Response
This brings us back to the central puzzle. Despite the record quarterly figures and raised guidance, Siemens shares have faced selling pressure. After reaching an all-time high of €273.30, the stock underwent a correction of more than 15%. On March 5, it fell below the 200-day moving average—a technically significant signal for many market participants.
Year-to-date, the equity has registered a loss of approximately 6%. Evidently, investor uncertainties surrounding the complex Healthineers transaction and its valuation implications are currently outweighing the strong operational metrics.
All eyes will now turn to the Q2 results, due on May 13. These figures will reveal whether the powerful order momentum, particularly from the booming data center segment, can be sustained throughout the fiscal year. Potentially more critical, however, will be the detailed plans for the Healthineers spin-off, which are slated for announcement in early April.
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