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Siemens AG (SIEGY)
OTHER OTC:SIEGY
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Siemens AG
(OTC:SIEGY)
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Rating:72Outperform
Price Target:
$155.00
â–²(9.38% Upside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by solid financial performance and a positive earnings call featuring raised FY26 guidance, strong order visibility (record backlog), and continued capital returns. The rating is tempered by weaker near-term technical momentum and a valuation that looks somewhat premium at a ~26 P/E, only partially offset by the dividend yield.
Positive Factors
Record backlog and order visibility
A record €120bn backlog and a 1.12 book-to-bill give Siemens durable multi-quarter revenue visibility across segments. This backlog supports predictable revenue conversion, underpins planning for production and services, and cushions near-term demand swings, strengthening medium-term cash flow visibility.
Profitability and software/automation momentum
Digital Industries' strong revenue, double-digit software growth and ARR expansion shift Siemens toward recurring, higher-margin streams. This structural mix improvement supports margin sustainability, less cyclical revenue, and higher customer stickiness from software and automation offerings over the medium term.
Strong financial position and disciplined capital returns
Low industrial leverage, investment-grade ratings and active buybacks plus a meaningful dividend demonstrate financial flexibility and shareholder discipline. This balance of capital returns and conservative debt metrics supports funding for capex/M&A while preserving resilience through industry cycles.
Negative Factors
Meaningful leverage for an industrial
Although debt sits below equity, the increased absolute debt level is meaningful for an industrial company and narrows financial flexibility. In a downturn or funding stress, this leverage could constrain investment, limit opportunistic M&A, or force slower buyback/dividend pacing over the medium term.
Free cash flow volatility and working-capital build
Siemens generates positive FCF, but recent TTM declines and a €1.3bn working-capital build show material seasonality and timing risk. Persistent volatility in FCF reduces certainty around funding for capex, buybacks and M&A and can elevate short-term borrowing or constrain strategic spending if sustained.
Integration costs pressuring DI margins
Integration of Altair and Dotmatics is creating a near-term ~100bp headwind to DI margins. Execution risk and ongoing consolidation can suppress margin expansion and delay expected synergies, meaning margin recovery depends on successful integration over several quarters rather than immediate improvements.
Siemens AG (SIEGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$221.02B
Dividend Yield1.94%
Average Volume (3M)208.99K
Price to Earnings (P/E)24.9
Beta (1Y)1.02
Revenue Growth4.27%
EPS Growth17.72%
CountryUS
Employees313,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.53
Shares Outstanding1,600,000,000
10 Day Avg. Volume200,180
30 Day Avg. Volume208,987
Financial Highlights & Ratios
PEG Ratio1.06
Price to Book (P/B)2.90
Price to Sales (P/S)2.29
P/FCF Ratio16.71
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue2.97
Enterprise Value/Gross Profit7.64
Enterprise Value/Ebitda15.20
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)6.42
Revenue Forecast (FY)$98.11B
Siemens AG Business Overview & Revenue Model
Company DescriptionSiemens Aktiengesellschaft, a technology company, focuses in the areas of automation and digitalization in Europe, Commonwealth of Independent States, Africa, the Middle East, the Americas, Asia, and Australia. It operates through Digital Industries, Smart Infrastructure, Mobility, Siemens Healthineers, and Siemens Financial Services segments. The Digital Industries segment offers automation systems and software for factories, numerical control systems, motors, drives and inverters, and integrated automation systems for machine tools and production machines; process control systems, machine-to-machine communication products, sensors and radio frequency identification systems; software for production and product lifecycle management, and simulation and testing of mechatronic systems; and cloud-based industrial Internet of Things operating systems. The Smart Infrastructure segment offers products, systems, solutions, services, and software to support sustainable transition in energy generation from fossil and renewable sources; sustainable buildings and communities; and buildings, electrification, and electrical products. The Mobility segment provides passenger and freight transportation, such as vehicles, trams and light rail, and commuter trains, as well as trains and passenger coaches; locomotives for freight or passenger transport and solutions for automated transportation; products and solutions for rail automation; electrification products; and intermodal solutions. The Siemens Healthineers segment develops, manufactures, and sells various diagnostic and therapeutic products and services; and provides clinical consulting services. The Siemens Financial Services segment offers debt and equity investments; leasing, lending, and working capital financing solutions; and equipment, project, and structured financing solutions. Siemens Aktiengesellschaft was founded in 1847 and is headquartered in Munich, Germany.
How the Company Makes MoneySiemens AG generates revenue through multiple streams, primarily from the sale of products, systems, and services across its various sectors. The Digital Industries segment offers automation and digitalization solutions, which include software and hardware for industrial applications. Smart Infrastructure focuses on energy-efficient building technologies and smart grid solutions. The Mobility division provides rail automation and electrification solutions, while Siemens Healthineers specializes in medical technology and diagnostics. Revenue is also derived from long-term service contracts, maintenance agreements, and consulting services. Notable partnerships with other technology firms and governments enhance its product offerings and market reach, contributing significantly to its earnings.
Siemens AG Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial picture: strong order intake (record backlog), broad-based revenue growth (+8% group) and margin expansion in key businesses (SI and DI), supported by strategic AI partnerships and disciplined capital allocation (buybacks, share retirements). Offsetting factors include currency headwinds, integration-related margin drag, seasonal cash flow swings, and some near-term softness in Mobility and limited end-market visibility. On balance, the positive business momentum and raised EPS guidance outweigh the contained challenges.Q1-2026 Updates
Positive Updates
Record Order Backlog and Healthy Book-to-Bill
Group orders rose 10% year-over-year to EUR 21.4 billion with a book-to-bill of 1.12. Order backlog reached a record EUR 120 billion, providing strong visibility for future quarters.
Group Revenue and Profitability Growth
Group revenue increased 8% year-over-year with all businesses contributing. Industrial profit was EUR 2.9 billion and the group's industrial profit margin rose to 15.6%, above market expectations. Basic EPS pre-PPA for the quarter reached EUR 2.80.
Raised FY EPS Guidance and Confident Outlook
Siemens raised its FY EPS (pre-PPA) guidance to EUR 10.70–11.10 (midpoint up EUR 0.20). Management expects to reach the upper half of the comparable revenue growth guidance (6%–8%), signaling confidence after a strong start to fiscal 2026.
Smart Infrastructure (SI) Outperformance
SI delivered outstanding results: orders up 22% to EUR 7.2 billion (quarterly record), book-to-bill 1.30, order backlog EUR 20.2 billion, revenue +10%, electrification revenue +22%, and profit margin expanded by 210 basis points to 19.0% (commodity-hedging added ~100bps). Data center orders hit a record EUR 1.8 billion.
Digital Industries (DI) Momentum — Automation & Software
DI orders were EUR 4.8 billion (+13% YoY) with book-to-bill 1.07. DI revenue grew 10%; software +11% and automation +9% (automation revenue noted at EUR 7.9 billion). DI profit margin reached 17.8%, exceeding expectations, and ARR for DI software grew organically 10% YoY.
Mobility Solid Start and Large Backlog
Mobility orders were EUR 2.9 billion and revenue grew 9% with profit margin improving to 9%. Order backlog stands at EUR 51 billion (including EUR 15 billion in attractive service business) and several large tenders are expected to convert in coming quarters (e.g., Copenhagen S-train order).
Strategic Partnerships and AI Initiatives
Siemens deepened partnerships (NVIDIA, Microsoft, Samsung C&T) and showcased industrial AI use cases (digital twin composer, Industrial Copilot). Focus on data center solutions, prefabricated power, liquid cooling and AI-enabled factory improvements (Nanjing factory using 50+ AI apps; WEF Global Lighthouse award).
Strong Capital Allocation and Financial Position
Free cash flow in Q1 was ~EUR 0.7 billion. Industrial net debt/EBITDA at 0.9 with AA ratings from S&P and Moody's. Dividend at EUR 5.35 and accelerated share buybacks of ~EUR 4.4 billion executed; plan to retire 18 million treasury shares.
M&A Integration and Synergy Progress
Altair and Dotmatics integrations progressing: target cost synergies of USD 150 million (about two-thirds already implemented) and consolidation of ~100 locations. Recent EDA-strengthening acquisition of ASTER Technologies announced.
Negative Updates
Currency Headwinds and Translation Effects
Negative currency translation materially impacted nominal revenue growth. Group margin lost ~60 basis points due to FX; Digital Industries experienced ~110 basis points of negative currency impact on margin.
Integration Costs and Margin Pressure at DI
DI faced integration-related costs (Altair and Dotmatics) that reduced DI margin by ~70 basis points in Q1, with an expected full-year headwind of ~100 basis points (excluding severance).
Free Cash Flow Seasonality and Working Capital Build
After an exceptionally strong Q4 FY25, free cash flow swung back to ~EUR 0.7 billion in Q1 and operating working capital increased by approximately EUR 1.3 billion, reflecting seasonal buildup and timing effects.
Mobility Near-Term Softness and Book-to-Bill <1
Mobility's book-to-bill was 0.90 in Q1 and management expects Q2 to be temporarily soft (low single-digit revenue growth vs strong prior-year quarter), indicating near-term volatility despite a strong backlog and full-year guidance confirmation.
China and End-Market Visibility Constraints
While China showed pockets of strength (notably DI automation), the broader economic environment in some end markets (real estate in China, mixed demand across automotive/suppliers) limits visibility and moderates expectations.
One-off Cash Outflows and Legacy Items
Siemens paid ~EUR 400 million to settle long-standing Hanau nuclear waste obligations in Q1. There are also portfolio actions (Healthineers deconsolidation steps, airport logistics sale) with timing and tax considerations that add complexity.
Company Guidance
Siemens raised and narrowed its FY26 outlook, now targeting group comparable revenue growth in the upper half of 6–8% and increasing EPS pre‑PPA to €10.70–€11.10 (≈€0.20 higher at the midpoint); Digital Industries maintains FY revenue guidance of 5–10% (comparable) with profit margin moving toward the upper half of 15–19% (Q2 revenue mid‑single‑digit, Q2 margin around the midpoint); Smart Infrastructure expects FY revenue growth in the upper half of 6–9% with a profit margin in the 18–19% range (Q2 within that range, full year toward the upper half); Mobility confirms FY revenue growth of 8–10% and a margin of 8–10% (Q2 expected low single‑digit growth vs. a strong prior‑year quarter); additional metrics highlighted include Q1 free cash flow ≈€0.7bn, industrial net debt/EBITDA ≈0.9, ARR growth for DI software +10% y/y, Q1 group book‑to‑bill 1.12, record order backlog €120bn, dividend €5.35, nearly €4.4bn buybacks executed and planned retirement of 18m shares.Siemens AG Financial Statement Overview
Summary
Solid fundamentals: steady revenue growth and healthy profitability, supported by consistently positive operating and free cash flow. Offsets include moderate but meaningful leverage for an industrial name and some recent softness versus prior peaks (TTM net margin below the latest annual level and a decline in TTM free cash flow growth).Income Statement
Revenue has grown steadily over the multi-year period (with low single-digit growth in the last two annual reports), supporting a solid earnings base. Profitability is healthy for the sector, with gross margins consistently around the high-30% range and net margin improving versus earlier years, though TTM (Trailing-Twelve-Months) net margin is below the latest annual level. Operating profitability remains strong, but margins show some mild compression from the 2023–2024 highs, suggesting less favorable mix, pricing, or cost pressure recently.78
Positive
Balance Sheet
The balance sheet looks generally sound with equity building over time and returns on equity remaining solid (low-to-mid teens in recent periods). Leverage is moderate: debt is below equity in the latest periods, and the debt load has risen versus 2023–2024 alongside a larger asset base. The main watch item is that debt remains meaningful for an industrial business, limiting flexibility if the cycle weakens, but it is not at an extreme level based on the provided leverage ratios.70
Positive
Cash Flow
Cash generation is strong: operating cash flow and free cash flow are consistently positive, and free cash flow conversion versus net income is robust (around ~0.8 across periods). However, free cash flow growth is volatile, with a notable decline in TTM (Trailing-Twelve-Months) versus the prior annual period, indicating some working-capital or investment swing. Overall cash flows support earnings quality, but the recent downturn in free cash flow growth is a near-term negative.72
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 79.70B | 78.91B | 75.93B | 74.88B | 71.98B | 62.27B |
| Gross Profit | 30.94B | 30.40B | 29.82B | 29.12B | 25.85B | 22.74B |
| EBITDA | 15.56B | 15.86B | 16.17B | 16.04B | 11.40B | 11.21B |
| Net Income | 7.95B | 9.62B | 8.30B | 7.95B | 3.72B | 6.16B |
Balance Sheet | ||||||
| Total Assets | 170.13B | 166.20B | 147.81B | 145.07B | 151.50B | 139.61B |
| Cash, Cash Equivalents and Short-Term Investments | 15.26B | 16.69B | 11.46B | 11.13B | 12.99B | 12.05B |
| Total Debt | 56.47B | 56.01B | 47.92B | 46.60B | 50.64B | 48.70B |
| Total Liabilities | 98.11B | 97.83B | 91.58B | 92.01B | 96.70B | 90.33B |
| Stockholders Equity | 65.48B | 62.24B | 51.26B | 47.79B | 48.90B | 44.37B |
Cash Flow | ||||||
| Free Cash Flow | 9.55B | 10.81B | 9.58B | 10.02B | 8.16B | 8.27B |
| Operating Cash Flow | 11.98B | 13.26B | 11.66B | 12.24B | 10.24B | 10.00B |
| Investing Cash Flow | -14.38B | -11.31B | -3.28B | -3.18B | -2.49B | -15.49B |
| Financing Cash Flow | 4.41B | 3.64B | -8.88B | -8.73B | -7.50B | 785.00M |
Siemens AG Technical Analysis
Positive
141.71
Price Trends
144.32
Positive
140.03
Positive
133.94
Positive
Market Momentum
-0.61
Positive
49.05
Neutral
20.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIEGY, the sentiment is Positive. The current price of 141.71 is below the 20-day moving average (MA) of 146.82, below the 50-day MA of 144.32, and above the 200-day MA of 133.94, indicating a neutral trend. The MACD of -0.61 indicates Positive momentum. The RSI at 49.05 is Neutral, neither overbought nor oversold. The STOCH value of 20.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SIEGY.
Siemens AG Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $145.48B | 35.84 | 21.57% | 1.29% | 8.24% | 6.21% | |
80 Outperform | $129.12B | 37.31 | 25.79% | 0.79% | 0.22% | 26.66% | |
72 Outperform | $221.02B | 24.90 | 12.94% | 1.94% | 4.27% | 17.72% | |
72 Outperform | $84.89B | 28.08 | 93.75% | 2.43% | -0.41% | -10.88% | |
69 Neutral | $84.84B | 36.85 | 11.31% | 1.58% | 2.97% | 18.14% | |
68 Neutral | $45.54B | 46.37 | 27.71% | 1.33% | 0.98% | -7.51% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
SIEGY
Siemens AG
146.68
34.85
31.16%
ETN
Eaton
374.59
87.89
30.66%
EMR
Emerson Electric Company
152.72
34.68
29.38%
ITW
Illinois Tool Works
290.28
33.88
13.21%
PH
Parker Hannifin
1,014.97
365.97
56.39%
ROK
Rockwell Automation
411.30
131.26
46.87%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.