Siemens Shares Fall as Digital Industries Order Growth Misses Expectations

By Nina Kienle

Shares in Siemens fell after order growth in its digital industries division missed expectations while market forecasts for smart infrastructure already sit within the newly upgraded guidance.

In European morning trade, shares were 4% lower at 274.55 euros, but almost 15% higher in the year to date.

The German industrial giant's digital industries division, which focuses on factory controllers and software, saw a 10% rise in comparable revenue growth to 4.93 billion euros ($5.70 billion), while orders jumped 9% on a comparable basis to 4.85 billion euros.

While revenue came ahead of analysts' forecast of 4.84 billion euros, orders missed the estimated 4.92 billion euros, according to consensus estimates compiled by the company.

On a comparable basis, orders grew 9%, behind the 11.7% anticipated by analysts.

The division has faced headwinds over the past two years as customers worked through excess inventories, particularly in factory automation, while weak demand in China and cautious industrial spending delayed a broader recovery.

Siemens backed its guidance for the division, a move that could be perceived negatively, Deutsche Bank analysts said in a note to clients.

Meanwhile, the conglomerate raised its fiscal-year smart infrastructure outlook after the division won a number of large contracts from data-center customers in the U.S. and Europe, boosting third-quarter profit and orders.

Siemens said it now targets comparable revenue growth in its smart infrastructure division of between 10% and 11%, up from the previous range of 8% to 10%. The profit margin is now expected to land between 18.5% and 19.5%, slightly ahead of the previous target range of 18% to 19%.

However, the lift appears less pronounced than that of peers, RBC Capital Markets analysts said. Consensus already sits at 9.2% comparable revenue growth and at 18.5% for the profit margin, according to the company-compiled consensus.

The group also raised its earnings per share pre-purchase price allocation guidance range to between 11.20 euros and 11.50 euros, from 10.70 euros to 11.10 euros previously, with consensus penciled in at 11.30 euros.

For the quarter ended June 30, net profit increased to 2.27 billion euros from 2.05 billion euros the prior year's period on revenue that rose 8% on a comparable basis to 20.79 billion euros.

The figures beat analysts' forecast of net profit at 1.90 billion euros and revenue at 20.64 billion euros, according to consensus estimates provided by the company.

Orders rose 14% on a comparable basis to 27.90 billion euros.

Write to Nina Kienle at nina.kienle@wsj.com

(END) Dow Jones Newswires

August 06, 2026 05:16 ET (09:16 GMT)