Siemens Share Price (ETR: SIE) Consolidating as Earnings Await

Siemens AG shares (ETR: SIE) ended the day down 0.49%, as earnings loom large over tomorrow's calendar. With the share price performing strongly through 2025 so far, posting a gain of 18.47%, the XETRA listed firm is entering an important phase that could shape the next leg.

For the upcoming quarter, markets are looking for Siemens to post an EPS of €2.49, on revenue of €19.26billion. The company has beat expectations on earnings per share in each of the past four reports, setting a standard that markets will come to expect.

Looking at the most recent quarter as a guide, Siemens reported a 56% year-over-year increase in net profit for Q1 FY2025, reaching €3.71 billion, driven largely by a €2.1 billion gain from the sale of its Innomotics division. Despite this, orders declined by 7% to €20.07 billion, with the automation-focused Digital Industries segment experiencing an 11% organic sales drop. The Mobility division also faced headwinds due to reduced large-order volumes.

Despite these challenges, Siemens reaffirmed its fiscal 2025 guidance, projecting 3–7% comparable revenue growth and basic earnings per share (pre-PPA) of €10.40–€11.00. Free cash flow exceeded analyst expectations by 40%, and the Digital Industries segment’s book-to-bill ratio climbed above 1x for the first time in two years, a potential inflection point as automation demand stabilises.

Strategic Partnerships and Expansion into AI

A defining theme for Siemens in 2025 is its aggressive embrace of digital transformation. The formation of a 7,000-strong business group with Accenture, announced at Hannover Messe, is emblematic of this shift. By combining Siemens’ Xcelerator industrial software with Accenture’s AI and cloud capabilities, the partnership aims to accelerate the adoption of model-based systems engineering, software-defined factories, and advanced cybersecurity across key verticals like automotive and aerospace. Early results are promising: clients such as KION Group have reported double-digit efficiency gains in engineering workflows.

Siemens’ $5.1 billion acquisition of Dotmatics further cements its push into life sciences R&D software. Dotmatics brings a high-margin, AI-powered lab management platform, expanding Siemens’ addressable market by $11 billion and promising annual synergies of up to $500 million by 2030. The integration of Dotmatics’ tools with Siemens’ digital twin solutions is expected to deepen the company’s footprint in data-driven research and manufacturing.

What Does The Future Hold?

To support its transformation, Siemens has not shied away from tough decisions. The announcement of 5,600 layoffs in the Digital Industries division, primarily in Germany and China, reflects a strategic pivot from hardware-centric automation to software and AI-driven solutions. While the move responds to a 30% profit decline in automation, it is also expected to yield €400 million in annual cost savings from 2026. Analysts generally view the restructuring as a necessary step to sustain margins and remain competitive in a rapidly evolving landscape.

Siemens’ infrastructure focus remains a stabilising force amid short-term volatility. The €2.8 billion contract with Deutsche Bahn to modernise Germany’s rail network through 2035 exemplifies the company’s ability to secure long-term, high-visibility revenue streams. Innovations such as digital control systems and modular prefabrication are expected to compress delivery timelines and optimise network performance, supporting Siemens’ ambition to lead Europe’s infrastructure renewal.

CEO Roland Busch’s “ONE Tech Company” strategy, articulated at the 2025 annual meeting, aims to unify Siemens’ diverse businesses under a common digital vision. The company’s record FY2024 results, a €1.2 billion share buyback, and partnerships with technology leaders like NVIDIA and Audi underscore a commitment to shareholder value and technological leadership. Since 2020, Siemens has delivered a total shareholder return of 207%, outpacing many industrial peers.

Nevertheless, Siemens faces notable external risks. The lingering impact of its Russia exit, US tariffs affecting Siemens Energy, and the tragic loss of its Spain CEO in a helicopter crash have tested management’s crisis response. Yet, the market has largely shrugged off these events, reflecting confidence in Siemens’ long-term strategy.

With a forward P/E ratio of 17.94 and a 2.7% dividend yield, Siemens remains attractively valued relative to its global peers. Infrastructure orders now account for 38% of the company’s backlog, and software revenue is growing at 9% annually. The key questions for investors revolve around the pace of recovery in automation, the successful integration of Dotmatics and Accenture initiatives, and the monetisation of AI-driven solutions.