German industrial giant Siemens lifted its full-year earnings guidance after reporting a robust first quarter fueled by AI-linked demand.
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The Numbers
Core earnings rose 15% to €2.9 billion ($3.4 billion) for the quarter ended December. Revenue increased 4% to €19.1 billion.
The Driver
The company has benefited from surging demand for U.S. data centres that provide computing power for artificial intelligence. Siemens’ infrastructure division, which produces much of the electrical equipment for these facilities, recorded a record order intake.
The Outlook
Siemens raised its full-year earnings-per-share forecast to €10.70–11.10, up from the previous range of €10.40–11.00.
The Noise
Net profit fell 43% versus last year—but this was due to a one-off gain in the prior period from the sale of industrial motor maker Innomotics, not underlying weakness.
The Strategy
CEO Roland Busch noted the company is “scaling industrial AI in our core industries together with world-class partners.” Siemens has been shifting toward higher-margin software solutions to help customers automate processes and monetize data.
The China Factor
Busch highlighted strength in Siemens’ automation business in China, where the company is developing more products locally and increasingly outperforming domestic competitors.
The Bottom Line
AI infrastructure demand is no longer just a story for chipmakers. Siemens is proving industrial giants can ride the same wave—and is raising bets on the rest of the year.
