Original from: Siemens Healthineers
Siemens Healthineers AG today announces its results for the third quarter of fiscal year 2026 ended June 30, 2026.
Q3 Fiscal Year 2026
• Outstanding equipment book-to-bill ratio of 1.27
• Comparable revenue growth of 2.8% after a very strong prior-year quarter (7.6%)
• Adjusted EBIT margin of 19.1%, tariff refunds had a positive effect in all segments
• Imaging comparable revenue growth of 2.3%; adjusted EBIT margin of 26.5%
• Precision Therapy comparable revenue growth of 9.2%; adjusted EBIT margin of 17.5%
• Diagnostics comparable revenue decline of 5.5%; adjusted EBIT margin of 4.1%
• Adjusted basic earnings per share of €0.70, tariff refunds had a positive effect
• Very high free cash flow of €1.0 billion, supported further by tariff refunds
Updated Outlook for Fiscal Year 2026
Primarily as a result of the performance of the Diagnostics segment in terms of revenue as well as the impact of refunds of tariffs imposed under the U.S. International Emergency Economic Powers Act (IEEPA) on adjusted basic earnings per share, we update our outlook for fiscal year 2026.
For fiscal year 2026, we now expect comparable revenue growth between 3.5% and 4.0% over fiscal year 2025 (previously between 4.5% and 5.0%). For adjusted basic earnings per share, we now expect a range of between €2.35 and €2.45 (previously between €2.20 and €2.30).
Bernd Montag, CEO of Siemens Healthineers AG:
”We showed great order momentum. Our synergetic core was robust on both top and bottom lines. Due to the revenue weakness in Diagnostics we are decreasing our revenue growth outlook while raising the EPS outlook by the amount of the tariff refunds.“
After a very strong prior-year quarter, revenue rose by 2.8% on a comparable basis in the third quarter of fiscal year 2026 to almost €5.8 billion. This growth was attributable to very strong revenue development in the Precision Therapy segment and to slight revenue growth in Imaging.
From a geographical perspective, the EMEA region showed strong comparable growth. The Americas region recorded a moderate revenue increase after significant growth in the prior-year quarter. The Asia Pacific Japan region recorded slight revenue growth after a very strong prior-year quarter. Revenue in the China region declined by a very low double-digit percentage range.
Equipment order intake clearly exceeded equipment revenue in the third quarter, resulting in an outstanding equipment book-to-bill ratio of 1.27.
Adjusted EBIT in the third quarter was around €1.1 billion. The adjusted EBIT margin was 19.1%, above the prior-year quarter. Tariff refunds* and contributions from higher revenue had a positive effect. This was counteracted by negative currency effects, an unfavorable business mix, cost increases due to inflation in all segments, and special items.
Net income was €676 million, up 21.7% from the prior-year period. The income tax rate was 22.9%, below that of the prior-year quarter.
Adjusted basic earnings per share of €0.70 were above the prior-year quarter level of €0.64. Tariff refunds more than offset lower earnings contributions from the operating business and the lower than the prior-year financial income, net.
Very high free cash flow of around €1.0 billion benefitted further from tariff refunds in the amount of around €0.2 billion and was well above the strong prior-year quarter.
In the Diagnostics segment, revenue declined by 5.5% on a comparable basis in the third quarter to just under €1.0 billion.
While Diagnostics’ revenue grew very strongly in the Asia Pacific Japan region, it declined by a mid-single-digit percentage range in the Americas and EMEA regions after growing in the prior-year quarter. The China region recorded a sharp revenue decline, mainly due to a structural change in the market environment.
The segment’s adjusted EBIT margin of 4.1% was clearly below the prior-year-quarter level. Continuing cost reductions related to the transformation program and tariff refunds could only partially offset lower earnings contributions from declining revenue, an unfavorable business mix and negative currency effects.
Outlook
Primarily as a result of the performance of the Diagnostics segment in terms of revenue as well as the impact of refunds of tariffs imposed under the U.S. International Emergency Economic Powers Act (IEEPA) on adjusted basic earnings per share, we update our outlook for fiscal year 2026.
For fiscal year 2026, we now expect comparable revenue growth between 3.5% and 4.0% over fiscal year 2025 (previously between 4.5% and 5.0%).
For adjusted basic earnings per share, we now expect a range of between €2.35 and €2.45 (previously between €2.20 and €2.30). The tariff refunds have a positive effect on the adjusted EBIT margin of all segments.
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 shows strong order momentum; full-year growth expectations lowered and earnings forecast raised
