Siemens Raises 2026 Outlook on AI Data Centre Boom

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.