Siemens Healthineers: Imaging and Precision Therapy on track, Diagnostics faces challenging environment; outlook updated

Original from: Siemens Healthineers

Siemens Healthineers AG today announces its results for the second quarter of fiscal year 2026 ended March 31, 2026.

Q2 Fiscal Year 2026

• Equipment book-to-bill ratio of 1.02

• Imaging comparable revenue growth of 6.1%; adjusted EBIT margin of 22.4%

• Precision Therapy comparable revenue growth of 4.7%; adjusted EBIT margin of 13.3%

• Diagnostics comparable revenue decline of 6.5% mainly due to a structural change in the China market environment; adjusted EBIT margin of 0.9%

• Overall comparable revenue growth of 3.1%

• Adjusted EBIT margin of 14.7%, impacted by tariffs and currency effects

• Adjusted basic earnings per share of €0.53, almost at prior-year level

• Free cash flow of €389 million

Updated Outlook for Fiscal Year 2026

As a result of the structural change in the Chinese Diagnostics market and more pronounced inflation assumptions during the quarter, we update our outlook for fiscal year 2026.

For fiscal year 2026, we now expect comparable revenue growth of between 4.5% and 5.0% over fiscal year 2025 (previously between 5% to 6%). For adjusted basic earnings per share, we now expect a range of between €2.20 and €2.30 (previously between €2.20 and €2.40).

Bernd Montag, CEO of Siemens Healthineers AG:

”While the environment remains tough, our synergetic core of Imaging and Precision Therapy is on track with good momentum. We are also taking measures for the future of the company by initiating the next steps to create options for Diagnostics and introducing an evolution of the leadership team.“

Business Development Q2

Revenue rose by 3.1% on a comparable basis in the second quarter of fiscal year 2026 to almost €5.7 billion. This growth was attributable to strong revenue development in the Imaging and Precision Therapy segments.

From a geographical perspective, the Americas region, which achieved significant revenue growth in the prior-year quarter, showed strong comparable growth. The EMEA region also recorded a strong increase in revenue. Meanwhile, revenue in the Asia Pacific Japan region, which showed very positive development in the prior-year quarter, declined by a mid-single-digit percentage. In the China region, revenue declined by a high single-digit percentage, mainly due to a structural change in the market environment in the Diagnostics segment.

Equipment order intake slightly exceeded equipment revenue, resulting in an equipment book-to-bill ratio of 1.02 and a further increase in equipment order backlog.

Adjusted EBIT in the second quarter was €836 million and the adjusted EBIT margin was 14.7%. Contributions from higher revenue and a favorable business mix had a positive effect, counteracted by higher tariffs and negative currency effects.

Net income was €512 million, down 4.5% from the prior-year period. The income tax rate was low, at 20.4%, below that of the prior-year quarter.

Adjusted basic earnings per share of €0.53 were almost on par with the level of the prior-year quarter. Negative currency effects and higher tariffs were almost compensated for by higher earnings contributions from the operating business, higher financial income, net and the lower year-on-year income tax rate.

Free cash flow of €389 million was clearly above the prior-year quarter.

In the Diagnostics segment, revenue declined by 6.5% on a comparable basis in the second quarter to almost €1.0 billion.

While Diagnostics revenue in the EMEA region was flat, the segment showed a slight decline in the Americas region.

Following strong growth in the prior-year quarter, revenue in the Asia Pacific Japan region declined moderately. In the China region, revenue fell sharply, mainly due a structural change in the market environment.

The segment’s adjusted EBIT margin of 0.9% was clearly below the level of the prior-year quarter. Lower earnings contributions from declining revenue, and higher tariffs, could only partially be offset by continuing cost reductions related to the transformation program.

Outlook

As a result of the structural change in the Chinese Diagnostics market and more pronounced inflation assumptions during the quarter, we update our outlook for fiscal year 2026.

For fiscal year 2026, we now expect comparable revenue growth of between 4.5% and 5.0% over fiscal year 2025 (previously between 5% to 6%).

For adjusted basic earnings per share, we now expect a range of between €2.20 and €2.30 (previously between €2.20 and €2.40).

The outlook is based on several assumptions regarding revenue growth and the adjusted earnings development of our segments. These assumptions remain unchanged, except for the Diagnostics segment, for which the comparable revenue growth and the adjusted EBIT margin assumptions are adjusted as follows:

For the Diagnostics segment, we now assume a comparable revenue decline in the low to mid single-digit percentage range (previously flat development) and a decline of the adjusted EBIT margin by mid triple-digit basis points (previously minor expansion).

In addition, the outlook is based on assumptions about exchange rate developments, which currently lead to a significant negative currency effect on the expected adjusted basic earnings per share for fiscal year 2026 compared with fiscal year 2025. Furthermore, this outlook excludes potential portfolio measures. In addition, the outlook is based on the assumption that developments related to wars and conflicts will not have a material impact on our business activities. The outlook is based on the number of shares outstanding at the end of fiscal year 2025.

This outlook is based on the assumption that the current macroeconomic environment, including the interest rate level, will remain largely unchanged. Further charges from legal, tax and regulatory issues and framework conditions, for example changes in the level of tariffs and the resilience of our supply chains, are excluded.

Source: Siemens Healthineers: Imaging and Precision Therapy on track, Diagnostics faces challenging environment; outlook updated