Siemens Enjoys a Fortnight of Wall Street Success - Has the Breakthrough Finally Arrived?
Siemens Delivers Strong Q2 2025 Results, Boosting Stock Performance
Siemens, the German engineering conglomerate, has posted impressive quarterly results, with its stock receiving a positive response from analysts. The company, which ranks among the top four performers in the DAX, shared its Q2 2025 earnings on Thursday.
The strong performances and positive growth outlooks were evident across Siemens' key divisions, particularly Siemens Healthineers and Siemens Energy. Both divisions surpassed expectations and confirmed upgraded guidance.
Siemens Healthineers reported a 9% year-over-year increase in revenue, reaching €5.9 billion. The growth was primarily driven by the Imaging and Varian divisions, which saw growth of 8.7% and 12.5% respectively. Despite challenging procurement conditions, Diagnostics maintained a 6.3% EBIT margin. The company managed to mitigate 33% of tariff impacts through supply chain adjustments and proactive strategies, preserving its adjusted EPS guidance between €2.20-2.50.
Strategic investments in AI and partnerships, such as the €800M Alberta collaboration, position Siemens Healthineers strongly in precision oncology and value-based care. The company's free cash flow was robust at €1 billion for the first half of the year, with a forward P/E of 18.5x, signaling long-term investment appeal despite trade uncertainties.
Siemens Energy reported a record €14.4 billion order intake in Q2 2025, a 52.3% increase year-over-year. All business divisions grew, notably Gas Services and Grid Technologies. Margin expanded to 9.1% from 2.1% the previous period, reflecting enhanced pricing power and project execution.
Free cash flow surged 188% to €1.39 billion, supporting reinvestments in green hydrogen and energy transition technologies. The company reaffirmed its fiscal year outlook, with expected comparable revenue growth of 13% to 15% and profit margins from 4% to 6%. Net income is forecasted to be up to €1 billion excluding special items.
The backlog stands at a strong €133 billion, underpinning confidence in sustained growth. Siemens Energy’s dividend ban was lifted early for 2025, further signaling financial strength and shareholder confidence.
The overall Siemens Group confirmed strong Q3 fiscal 2025 momentum with growth in orders, revenue, and net income, driven by digitalization and sustainability initiatives. The company remains confident in delivering sustainable, profitable growth for fiscal 2025, solidifying its positive outlook.
Siemens stock experienced a 9% increase last week, and analysts continue to recommend buying the stock. Andre Kukhnin, an analyst at Swiss bank UBS, raised Siemens' stock price target from 240 to 255 euros. The order intake in the Mobility division was nearly 8 billion euros, 86% above consensus estimates, according to Phil Buller, an analyst at U.S. bank JPMorgan.
The stock is poised to break out of the upward trend established since May, with a clear new buy signal only being triggered by a move above the level of 244.85 euros. Investors remain committed to Siemens' stock, with a stop at 172.00 euros. Despite trade crises, Siemens remained robust and continued to grow in the last quarter.
If successful, the record high of 244.85 euros, reached in March, will be back within reach for Siemens' stock. Analysts expect continued growth supported by strong order backlogs, margin expansion, strategic investments, and resilience amid geopolitical and market volatility.
[1] Siemens Healthineers Q2 2025 Earnings Release [2] Siemens Energy Q2 2025 Earnings Release [3] Siemens Q2 2025 Earnings Press Conference Transcript [4] UBS Research Note: Siemens Q2 2025 Earnings [5] JPMorgan Research Note: Siemens Q2 2025 Earnings
- The strong Q2 2025 results from Siemens, primarily in divisions like Siemens Healthineers and Siemens Energy, have given rise to a positive outlook for future investments in the stock-market.
- With Siemens' success in finance, such as the record €14.4 billion order intake for Siemens Energy and the 9% year-over-year increase in revenue for Siemens Healthineers, the company's stock is predicted to continue growing, making it an attractive option for investors.
