Siemens AG (OTC:SIEGY) expects currency headwinds to challenge its upcoming results as it plans to spin off a significant portion of its roughly ₤39 billion stake in Siemens Healthineers AG. This restructuring is part of Siemens’ broader strategy to simplify operations while expanding its software and automation portfolio amid rising demand from AI and electrification trends.
Shares of Siemens hit record highs this year thanks to increased AI-related spending and anticipated infrastructure investment. However, after the company issued more cautious guidance, shares dropped in trading on Thursday.
Siemens warned that currency fluctuations along with industrial-market uncertainty may weigh on volume growth and profits in its industrial operations. The guidance for the fiscal year ending September 2026 falls short of market expectations, as Siemens now targets comparable sales growth of roughly 6-8 %, versus stronger forecasts from analysts.
Despite these headwinds, Siemens reported fourth-quarter revenue of €21.43 billion, matching analyst forecasts. Profit from its industrial sector rose slightly to €3.19 billion, though margins narrowed.
Siemens will distribute approximately 30 % of its Healthineers stake to shareholders as it transitions the remaining stake into a financial asset valued at about €33.9 billion. The deconsolidation process is expected to be prolonged due to unclear tax implications.
#Investor Takeaway
Siemens’ guidance signals potential short-term challenges for its share performance, even as its long-term pivot toward software and AI remains compelling.
#Market Impact
The weaker outlook may trigger volatility in Siemens shares and dampen investor sentiment. Market participants will monitor how currency pressures and the deconsolidation of Healthineers influence medium-term results.
#What’s Next
Investors should keep an eye on Siemens’ earnings release for FY 2026 and any updates on the integration of its software and automation assets.