Key Points
- Siemens lifts full-year earnings forecast after profit beats expectations
- AI-driven data-centre demand emerges as a major growth engine
- Industrial profit rises 15%, surpassing analyst estimates
- Shares climb over 6% in early Frankfurt trading
ISLAMABAD: German engineering giant Siemens raised its full-year profit outlook after stronger-than-expected first-quarter results, driven by surging demand for artificial intelligence-powered data-centre infrastructure that also lifted its shares in early trading.
Industrial profit for the quarter through December jumped 15 per cent to €2.90 billion ($3.44 billion), exceeding analysts’ consensus forecast of €2.64 billion (about $3.13 billion). Sales increased 4 per cent to €19.14 billion (roughly $20.9 billion), and orders grew 7 per cent, reflecting steady momentum across the company’s core businesses.
Chief Executive Roland Busch attributed the performance to rapid expansion in the data centre segment.
“Demand for data centres has considerably exceeded our expectations,” he said, adding that the company is confident it can maintain the pace throughout fiscal 2026.
Shares surged about 6.4 per cent in Frankfurt, making Siemens the top performer on the Stoxx Europe 600 Industrials index during early trade.
The company raised its basic earnings guidance for the financial year ending in September to between €10.70 and €11.10 per share (about $11.60 to $12.05), up from the previous range of €10.40 to €11.00 (approximately $11.30 to $11.95).
Busch said artificial intelligence is becoming a central growth driver for Siemens as it embeds the technology across its industrial ecosystem. “We’re scaling industrial AI in our core industries,” he said.
“By integrating AI deeply into design, development, products and operations, we’re adding measurable value for our customers.”
Among the firm’s AI-enabled tools are software that trains logistics robots to recognise different box sizes, voice-assisted systems that help operators diagnose mechanical problems, and applications that shorten product design timelines from weeks to days.
The results highlight how traditional industrial manufacturers are increasingly repositioning themselves as technology-led companies, investing heavily in automation, software, and digital infrastructure to target rising global demand for AI capabilities.
Siemens, one of Europe’s largest industrial groups, operates across energy systems, factory automation, smart infrastructure, transport technologies, and industrial software. Its growing exposure to data-centre infrastructure places it at the centre of the global race to build computing capacity needed to support AI expansion.
