Siemens Stock Lifts 2026 Forecast as AI Data Center Orders Surge

TLDR

Table of Contents

Siemens boosted 2026 revenue forecast to upper half of 6-8% range following Q1 results that exceeded expectations
First quarter orders rose 10% to $21.5 billion with U.S. orders jumping 54% on data center infrastructure demand
Data center segment posted 35% revenue growth as AI infrastructure buildout accelerates across North America
JPMorgan lifted price target to EUR 325 from EUR 300 while keeping Overweight rating on shares
Revenue grew 4% to $22.7 billion while net income reached $2.6 billion for quarter ending December 31

Siemens AG beat first quarter expectations and raised its full-year outlook on Thursday. The industrial technology provider cited booming demand for AI and data center infrastructure.

Siemens AG, SIE.DE

The company now targets the upper half of its 6-8% revenue growth guidance for 2026. CFO Ralf Thomas made the announcement during the earnings call.

Siemens increased its earnings per share guidance by 20 euro cents. The adjustment reflects strong momentum across its business divisions.

U.S. Data Center Orders Drive Growth

First quarter orders climbed 10% to $21.5 billion across Siemens‘ three main divisions. The smart infrastructure unit delivered record growth during the period.

U.S. orders exploded 54% compared to last year. Thomas attributed the surge to robust data center and building software demand.

The data center segment alone grew revenue by 35%. CEO Roland Busch said multiple large U.S. orders came in for cloud and AI infrastructure projects.

“Data centers demand has materially exceeded our expectations,” Busch told analysts.

Financial Results and Division Performance

Revenue increased 4% to $22.7 billion for the quarter ending December 31. Net income totaled $2.6 billion during the period.

Last year’s comparable quarter included a $4.2 billion gain from the Innomotics sale. That transaction boosted year-ago net income to roughly double this quarter’s figure.

The digital industries division posted double-digit order and revenue growth. This came despite ongoing softness in certain industrial markets.

Siemens’ mobility segment also expanded orders and revenue year-over-year. The division focuses on train and road technology solutions.

Strategic Moves and Analyst Updates

Siemens is working with Nvidia to develop AI-powered manufacturing tools. The partnership centers on digital twin technology and complex simulations.

CEO Busch described the initiative as building “the industrial AI operating system throughout the entire value chain.” The system spans design, engineering, manufacturing and supply chain operations.

JPMorgan analyst Phil Buller raised his price target to EUR 325 from EUR 300. The analyst maintained an Overweight rating following the earnings report.

Siemens recently sold its U.S. airport logistics business to Vanderlande for $355.9 million. The company also won a contract for over 200 automated trains for Copenhagen’s S-Bane network.

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