Italian Tax Police Search Amazon in New Probe

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Italian tax police carried out searches at the Milan headquarters of Amazon as part of a new tax evasion investigation, according to two sources familiar with the matter.

The Guardia di Finanza also searched the homes of seven Amazon managers and the offices of auditing firm KPMG. KPMG is not under investigation but provided opinions on actions now under scrutiny.

Milan prosecutors have opened an investigation into Amazon EU Sarl, based in Luxembourg, and its director Barbara Scarafia, on suspicion of failing to declare income. Authorities are examining whether Amazon had an undisclosed permanent establishment in Italy between 2019 and 2024 and therefore should have paid higher taxes locally.

According to a 13-page search warrant reviewed by Reuters, prosecutors believe Amazon maintained a permanent base in Italy even before August 2024, when the company entered a cooperative compliance program with Italy’s tax agency and began paying taxes domestically.

Investigators are reviewing employment changes made in 2024, when Amazon EU Sarl dismissed and rehired 159 employees from another Amazon entity. Prosecutors suspect this structure may indicate a permanent establishment during the years under review.

Tax police reportedly seized computers, hard drives and other IT devices, including archived staff emails stored after deletion from company systems.

The new probe adds to ongoing legal pressure on Amazon in Italy. In December, the company agreed to pay 510 million euros to settle a separate tax dispute. Prosecutors are also pursuing additional investigations concerning alleged tax evasion between 2021 and 2024, as well as a separate customs and tax fraud case involving imports from China.

The investigation underscores Italy’s broader efforts to tighten scrutiny of multinational tech firms operating across European tax jurisdictions.

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.