Siemens Raises Growth Targets as AI Data Centre Demand Drives Record Orders

Siemens reported record fiscal 2026 orders of EUR 108.2 billion, up 25% on a comparable basis, and raised its mid-term growth targets after its fourth-quarter results beat expectations on November 12. Revenue for the year was EUR 83.4 billion, free cash flow was a record EUR 12.1 billion, and the order backlog stands at EUR 143 billion.

Fourth-quarter orders rose 58% to a record EUR 34.8 billion, driven by large contract wins at its Mobility division and its Smart Infrastructure business, which supplies data centres. Orders from data centre customers doubled in the quarter and totalled more than EUR 8.5 billion for the year. Smart Infrastructure orders rose 40% to EUR 8.67 billion.

Siemens now targets comparable revenue growth of 7% to 11% a year, up from 6% to 9% and earnings per share growth of at least 10%, up from single digits. For fiscal 2027, it guides for revenue growth of 9% to 11%. It plans materially higher capital expenditure next year, mainly to expand Smart Infrastructure capacity for data centres.

CEO Roland Busch said he was not worried about a slowdown in data centre construction, after concerns about political scrutiny of projects triggered a tech stock selloff last week. He added that uncertainty over Nvidia CEO Jensen Huang’s future would not affect the company’s collaboration with the chipmaker.

“We are providing an ambitious outlook for fiscal 2027 and are raising our group-level mid-term targets,” said Roland Busch, President and CEO, Siemens.