Siemens Healthineers (SHL) Q3 2026 earnings summary

Executive summary

• Equipment book-to-bill ratio reached 1.27, reflecting robust demand and new value partnerships with Cleveland Clinic and Vanderbilt Health in the U.S.

• Imaging and Precision Therapy segments grew 5% and 9% respectively in Q3, with Precision Therapy led by Advanced Therapies and new angiography portfolio; Imaging growth was softer due to tough comps and revenue shifts.

• Diagnostics continued to face challenges from market rebasing in China and legacy platform revenue dilution, with sharper-than-expected declines.

• Profitability and EPS were boosted by significant U.S. IEEPA tariff refunds; margins remained decent despite FX and inflation headwinds.

• Preparations for Siemens AG deconsolidation and refinancing are progressing.

Financial highlights

• Group revenue grew 2.8% year-over-year to €5.76bn in Q3 FY2026, led by EMEA region; China declined 10%.

• Adjusted EBIT margin improved to 19.1%, with 230–370 bps boost from tariff refunds; adjusted EPS rose 10% to €0.70.

• Imaging revenue up 2.3% to €3.01bn, margin at 26.5%; Precision Therapy revenue up 9.2% to €1.75bn, margin at 17.5%; Diagnostics revenue down 6% to €992m, margin at 4.1%.

• Cash conversion rate was strong at 1.12; free cash flow reached €1.0bn; net debt reduced to €11.9–12bn, leverage at 2.8x.

Outlook and guidance

• FY2026 revenue growth outlook lowered to 3.5–4.0% (from 4.5–5.0%), mainly due to Diagnostics weakness.

• Adjusted EPS guidance raised to €2.35–2.45, reflecting €0.15 benefit from tariff refunds.

• Imaging and Precision Therapy expected to accelerate to high single-digit growth in Q4; Diagnostics to continue mid-single-digit decline.

• Double-digit EPS growth targeted for FY2027, with mitigation plans for inflation and macro uncertainty.