AI boom powers Siemens to record annual profit
German engineering giant Siemens posted record annual profit on Thursday and said it saw growth ahead as the artificial intelligence boom sweeps up European companies in its supply chain. Siemens said it expected further growth in the current business year, guiding for sales growth of between nine and 11 percent across the company as well as broadly stable or higher profit margins at its two…
German engineering company Siemens reported record annual profits and announced ambitious growth targets on Thursday, citing the artificial intelligence boom as a key driver of success. The AI boom has boosted companies in Siemens' supply chain, particularly those that manufacture electrical and cooling equipment for AI data centers. US tech giants Microsoft and Meta have invested billions in AI data centers, contributing to Siemens' financial growth.
Swiss competitor ABB reported a 40% increase in orders for the three months ending September, while France's Schneider Electric saw sales growth that exceeded expectations. Siemens' core industrial profit rose 13% to €13.3 billion for the fiscal year ending September, exceeding expectations. The company expects continued growth in 2027, guiding for sales growth of 9-11% and earnings per share growth of at least 10%, up from previous single-digit projections.
CEO Roland Busch expressed satisfaction with the company's performance, stating that Siemens is providing an ambitious outlook for 2027 and raising its group-level mid-term targets. The company's smart infrastructure business saw a 40% increase in orders to €8.67 billion, driven by larger contracts from data center customers. Orders at Siemens' digital industries division, which provides software for engineering and automation, grew by 16% to €6.41 billion.
Through its "Industrial AI" strategy, Siemens has shifted focus towards higher-margin software products under Busch's leadership.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- European shares log record close on Siemens, CoreWeave-fuelled AI optimism businesstimes.com.sg
- AI boom powers Siemens to record annual profit freemalaysiatoday.com
