MUNICH, Germany — Siemens continued its path of profitable growth in Q2 2026 (ended March 31, 2026) and – due to its positive business development – confirms its outlook for fiscal 2026 at Group level despite increased uncertainty in the economic environment.
“We delivered a successful second quarter despite the geopolitical environment, which remains very demanding. Siemens is benefiting from its technological strength and strong positioning in key growth markets. Digital Industries and Smart Infrastructure posted impressive overall performance – clear evidence that we’re on a path of profitable growth,” said Roland Busch, President and Chief Executive Officer of Siemens AG. “With our Eigen Engineering Agent, we’re further expanding our leadership position in industrial AI, and we see AI as a clear growth driver for our hardware, software and services business.”
“Our operating businesses’ convincing performance and our strong free cash flow prove our resilience. As a result, we’re very well positioned to reach our full-year group targets. At the same time, by announcing our new share-buyback program, we’re enabling our shareholders to participate in our success. In this way, we’re continuing our stringent capital allocation,” said Veronika Bienert, Chief Financial Officer of Siemens AG.
Significant growth in orders and revenue
In Q2 2026, Siemens increased revenue 6 percent on a comparable basis – that is, excluding currency translation and portfolio effects – to €19.8 billion (Q2 2025: €19.8 billion). Orders climbed 18 percent on a comparable basis to €24.1 billion (Q2 2025: €21.6 billion). The book-to-bill ratio was an excellent 1.22. The order backlog reached a new record high of €124 billion at the end of Q2 2026.
Profit Industrial Business rose to €3.0 billion due to strong operating performance at both Digital Industries and Smart Infrastructure (Q2 2025: €3.2 billion). Profit Industrial Business in Q2 2025 had benefited from a €0.3 billion gain related to exiting the wiring accessories business at Smart Infrastructure. As a result, the profit margin of the Industrial Business was 15.4 percent compared to 16.9 percent in Q2 2025.
Net income reached €2.2 billion (Q2 2025: €2.4 billion). Consequently, basic earnings per share before purchase price allocation accounting (EPS pre PPA) totaled €2.81 (Q2 2025: €3.00).
Free cash flow all-in from continuing and discontinued operations rose very strongly to €1.7 billion (Q2 2025: €1.0 billion). The Industrial Business delivered significantly higher free cash flow of €2.4 billion, driven by improvements across most businesses. Outside the Industrial Business, higher tax payments had negatively impacted free cash flow in Q2 2025.
In the first half of fiscal 2026, Siemens’ digital business grew by 19 percent – well above the ambition level of 15 percent set last November. The increase was driven by a good mix of organic growth from expanding Siemens Xcelerator’s software and digital services offerings combined with the strong growth trajectory of the company’s recent software acquisitions.
Double-digit order growth at Digital Industries, Smart Infrastructure and Mobility
Volume at Digital Industries rose due to increases at the software and automation businesses. Orders grew a substantial 12 percent on a comparable basis to €4.8 billion (Q2 2025: €4.3 billion). Revenue improved considerably, increasing 8 percent on a comparable basis to €4.6 billion (Q2 2025: €4.3 billion), whereby the software business grew 14 percent to €1.6 billion. Siemens’ software business seized several larger opportunities across its portfolio and is also successfully upselling within its customer base. Organic annual recurring revenue (ARR) grew a very healthy 11 percent compared to Q2 2025 and reached €5.5 billion. Profit and profitability increased significantly despite strong negative currency translation effects. Profit climbed 35 percent to €857 million (Q2 2025: €634 million). Digital Industries’ profit margin totaled 18.5 percent (Q2 2025: 14.8 percent). Its software business made the largest contribution to these improvements.
Smart Infrastructure continued volume growth on a comparable basis across all businesses. Orders climbed 35 percent on a comparable basis to €7.5 billion (Q2 2025: €6.0 billion) and once again reached a quarterly record high, driven primarily by the electrification and electrical products businesses, including strong growth from several large contract wins at data center and semiconductor customers, predominately in the U.S. Revenue grew 10 percent on a comparable basis to €5.9 billion (Q2 2025: €5.7 billion). Smart Infrastructure increased profit (€1.1 billion) and profitability (18.6 percent) across all businesses except the electrical products business, which had benefited in Q2 2025 from the previously mentioned €315 million gain related to exiting the wiring accessories business.
At Mobility, orders soared 41 percent on a comparable basis to €5.3 billion (Q2 2025: €3.9 billion) due to higher volume from large orders. At €3.0 billion, revenue was slightly below the strong prior-year level. Development was burdened by the impact of U.S. tariffs and by delayed call-offs under framework agreements for large rail infrastructure projects. Profit was down 28 percent to €208 million (Q2 2025: €291 million). As a result, Mobility’s profit margin was 6.9 percent (Q2 2025: 9.1 percent). The decline in profit and profitability was due mainly to burdens resulting from U.S. tariffs.
Siemens announces new share buyback program
In addition, Siemens is continuing its stringent approach to capital allocation and announcing a new share buyback program of up to €6 billion to extend for a period of up to five years. The initiative will enable the company to continue its ambitious share buyback program while maintaining flexibility in challenging times.