Siemens Healthineers (SHL) Q2 2026 earnings summary

Executive summary

• Imaging and Precision Therapy segments delivered strong operational performance and momentum in Q2 FY2026, while Diagnostics faced significant revenue and margin declines due to structural market rebasing in China.

• Leadership transition underway with new executives appointed to key roles, supporting strategic transformation and healthcare AI focus.

• Preparations for the carve-out and spin-off of Diagnostics are progressing, with a shareholder vote scheduled for early 2027.

• Revenue increased 3.5% year-over-year on a comparable basis, but net income and adjusted EBIT declined due to FX, tariffs, and China Diagnostics headwinds.

Financial highlights

• Imaging revenue grew 6.1% year-over-year, driven by photon-counting CT, radiopharmaceuticals, and MRI; adjusted EBIT margin reached 22.4%.

• Precision Therapy posted 4.7% comparable revenue growth, with Varian contributing 7.5% growth and margin at 13.3%.

• Diagnostics revenue declined 6.5% year-over-year, mainly due to China market headwinds and transformation effects; margin dropped to 0.9%.

• Adjusted EPS guidance for FY2026 is €2.20–€2.30, with operational EPS up ~16% excluding FX and tariffs.

• Free cash flow conversion rate for Q2 FY2026 was 0.81; cash and cash equivalents at quarter-end were €1.91 billion.

Outlook and guidance

• FY2026 revenue growth guidance lowered to 4.5–5.0% due to China Diagnostics and inflation.

• Adjusted EPS guidance narrowed to €2.20–2.30, reflecting additional supply chain inflation.

• Diagnostics segment expected to see low to mid single-digit revenue decline and significant EBIT margin drop.

• Q3 revenue growth expected above updated range, at 5–6%, with Imaging and Precision Therapy to accelerate.

• Double-digit EPS growth ambition for the midterm remains unchanged.