Siemens Raises 2026 Outlook on AI Data Centre Boom

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Siemens lifted its full-year 2026 profit guidance after stronger-than-expected first-quarter results, fueled by accelerating demand for AI-driven data centre infrastructure. Shares rose more than 6% in Frankfurt trading following the announcement.

CEO Roland Busch said revenue linked to data centres climbed by more than one-third in the quarter through December, describing demand as having “considerably exceeded expectations.” The company now expects to sustain that momentum through fiscal 2026.

Industrial profit increased 15% year-on-year to 2.90 billion euros, surpassing analyst forecasts of 2.64 billion euros. Net profit reached 2.22 billion euros, also ahead of expectations. First-quarter sales rose 4% to 19.14 billion euros, while orders climbed 7%.

As a result, Siemens raised its basic earnings outlook for the fiscal year ending September to between 10.70 and 11.10 euros per share, up from its prior forecast range of 10.40 to 11.00 euros.

Analysts highlighted strong performance in Siemens’ Digital Industries division, particularly in factory automation and industrial software. The company continues expanding industrial AI applications, including logistics robot training systems, AI-powered machine diagnostics, and accelerated product design tools that reduce development cycles from weeks to days.

While automotive demand remains moderate, Siemens reported growing momentum in defense, aerospace, pharmaceuticals, and industrial machinery sectors. However, management cautioned that global investment sentiment remains uncertain amid ongoing geopolitical tensions and tariff debates.

The results underscore how AI infrastructure spending is extending beyond chipmakers and cloud providers into traditional industrial engineering leaders.

Palo Alto to Dual-List in Tel Aviv After $25B CyberArk Deal

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Palo Alto Networks will begin trading its shares on the Tel Aviv Stock Exchange following the completion of its $25 billion acquisition of Israeli cybersecurity firm CyberArk Software.

Already listed on Nasdaq, Palo Alto said the dual listing will make it the largest company by market capitalization on the Tel Aviv Stock Exchange, with a current valuation of approximately $115 billion. The company plans to trade under the ticker symbol “CYBR” in Tel Aviv, though it has not disclosed a listing date.

Under the acquisition terms, CyberArk shareholders will receive $45 in cash plus 2.2005 shares of Palo Alto Networks common stock for each CyberArk ordinary share. The deal marks Palo Alto’s largest acquisition to date and significantly strengthens its Israeli research and development footprint, which is already its largest outside Silicon Valley.

CEO Nikesh Arora is positioning the company as a comprehensive cybersecurity platform provider, aiming to capitalize on increasing demand fueled by artificial intelligence-driven threats and digital transformation.

The Tel Aviv Stock Exchange welcomed the move, describing it as a milestone for Israel’s capital markets. The listing will provide Israeli institutional and retail investors with direct access to Palo Alto shares while preserving CyberArk’s identity within the group.

Meanwhile, rival Check Point Software Technologies confirmed it will remain solely listed on Nasdaq.

SoftBank Posts Fourth Straight Profit on OpenAI Gains

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SoftBank Group reported its fourth consecutive quarterly profit, buoyed by gains from its investment in OpenAI, even as it increased borrowing to expand its exposure to artificial intelligence.

The company posted a net profit of 248.6 billion yen for the October–December quarter, compared with a net loss a year earlier. A significant portion of the improvement came from the rising valuation of its OpenAI stake, which SoftBank said generated a total investment gain of nearly $20 billion by the end of December.

Founder and CEO Masayoshi Son has committed more than $30 billion to OpenAI, building an ownership stake of around 11% through Vision Fund 2. OpenAI is reportedly seeking an additional $100 billion in funding at a higher valuation, with prospective investors including Amazon and Nvidia.

To finance its AI strategy, SoftBank has relied on asset sales, bond issuance and loans backed by holdings such as chip designer Arm. It has also reduced stakes in companies including T-Mobile and expanded margin loans tied to its Arm and domestic telecom shares. The company’s loan-to-value ratio rose to 20.6% at the end of December, while its cash reserves declined.

As SoftBank deepens its investment in OpenAI, investors increasingly view the conglomerate as a proxy for the AI firm’s performance. While AI enthusiasm has lifted valuations, rising competition and escalating model development costs continue to shape market expectations.