German heavy equipment and industrial technology giant Siemens reported fiscal third-quarter results for the period ending June 30, 2026, on Wednesday, revealing that industrial business profit reached €3.52 billion (approximately $4.09 billion), a 25% increase year-on-year and a new quarterly record. The performance was fueled by a surge in demand for AI-powered software and equipment used to control factories and buildings, riding the tailwind of massive investments in data centers for artificial intelligence. However, despite the record figures, the magnitude of the upward revision to its full-year earnings per share outlook fell short of elevated market expectations, sending the company’s Frankfurt-listed shares down as much as 6% intraday.
Chief Executive Officer Roland Busch told reporters that “industrial AI products, which help customers accelerate innovation and boost productivity, are driving growth,” highlighting the particular strength of the data center business. Revenue rose 7% to €20.79 billion, surpassing the market consensus estimate of €20.64 billion. Orders jumped 13% to a record quarterly high of €27.9 billion, swelling the company’s order backlog to approximately €132 billion.
By segment, the Smart Infrastructure division, which handles electrical equipment for data centers, led the performance. Standalone orders for the division skyrocketed 42% compared to the same period last year, clearly reflecting robust capital investment demand for AI. The Digital Industries division, which provides factory automation software, also contributed to profit growth. Net profit climbed 15% to €2.6 billion.
Following the results, Siemens announced its second upward revision to its full-year outlook this year. The company raised its earnings per share (EPS) guidance for the fiscal year ending September 2026 to a range of €11.20 to €11.50, up from the previous forecast of €10.70 to €11.10. While this figure exceeds the consensus analyst forecast, the stock price plummeted following the announcement.
In a research note, an analyst at RBC Capital Markets pointed out that the magnitude of the guidance raise was “smaller compared to peers.” The analyst added that “uncertainty surrounding the macroeconomic demand environment and the risk that AI software could disrupt Siemens’ own business may continue to dampen investor enthusiasm.” As signs of a potential slowdown in data center hardware demand begin to emerge, market voices are also expressing caution regarding the long-term competitive shifts AI may bring to the industrial software market.
Siemens is currently positioned alongside France’s Schneider Electric and Switzerland’s ABB as a key industrial stock benefiting from the global AI investment boom. Founded as a telegraph company in 1847, Siemens has grown into a massive conglomerate with a wide-ranging portfolio spanning rolling stock, industrial software, medical devices, and electrical infrastructure.
CEO Busch expressed confidence that AI will further boost demand for the company’s software products in the future. “The more AI functionality you have on the shop floor, the more computing power you need. That is part of our core portfolio,” he stated, emphasizing a strategy to capture AI-driven demand not only in hardware but also in the software domain.