Siemens recorded €108.2 billion in orders during fiscal 2026, an increase of 25% on a comparable basis, as demand for industrial software, electrification equipment and transport infrastructure contributed to record order intake and industrial profit.
Revenue reached €83.4 billion in the financial year ended 30 September, representing comparable growth of 8%. The group's order backlog increased to €143 billion, compared with €117 billion a year earlier, providing a substantial pipeline of future engineering and equipment deliveries.
Profit from Siemens' Industrial Business rose 13% to €13.3 billion, with the corresponding margin increasing from 15.4% to 16.3%. Group free cash flow reached a record €12.1 billion.
Order growth accelerated during the final quarter, when Siemens secured €34.8 billion of new business, 58% above the corresponding period in 2025. Quarterly revenue increased 11% to €23.7 billion, while Industrial Business profit rose 22% to €3.9 billion.
Mobility and Smart Infrastructure made particularly strong contributions to fourth-quarter orders. The former supplies rail systems and related technologies, while the latter provides electrical distribution, control and building infrastructure equipment used across industrial and commercial installations.
Projects in these businesses can involve substantial engineering and manufacturing work extending over several years. Consequently, the value of an order may enter the backlog well before the associated equipment is delivered and revenue is recognised.
Siemens reported a full-year book-to-bill ratio of 1.30, increasing to 1.47 during the final quarter. Both figures indicate that incoming orders exceeded recognised revenue during the relevant periods.
The order backlog provides visibility of future work, although its conversion into revenue depends on project schedules, contractual milestones, component availability and the capacity required to complete individual programmes.
Digital technology formed another important part of the results. Siemens' digital business revenue increased 16% to €10.9 billion, reflecting demand across software and related technologies serving industrial and infrastructure applications.
Within Digital Industries, software revenue grew 13% on a comparable basis to €7.2 billion. Comparable annual recurring revenue increased 12% to €6.1 billion, providing a separate measure of subscription and other recurring software arrangements.
The digital business revenue figure covers a broader portfolio than Digital Industries software alone. Similarly, annual recurring revenue should not be added to software sales as though it represented a separate category of revenue earned during the same period.
Industrial software supports activities ranging from product design and engineering simulation to manufacturing planning, process control and equipment management. These functions operate at different stages of production and depend on accurate information being exchanged between the systems involved.
Engineering software can describe a product's geometry, material requirements and intended manufacturing process. Production planning systems then use relevant information to establish the operations, resources and equipment needed to manufacture the product.
At the factory level, automation controllers coordinate machinery using programmed instructions and measurements from connected devices. Information about equipment operation may subsequently be used by manufacturing software to examine production performance or investigate faults.
Connecting these environments requires consistent engineering data and suitable communication interfaces. A digital model can help assess production arrangements, but its usefulness depends on whether the information accurately represents the equipment and processes involved.
Siemens is extending its use of industrial artificial intelligence within this broader software portfolio. The company has identified applications involving engineering information, operational data and the automation of selected industrial tasks.
AI software requires access to relevant information about the process or equipment being examined. Measurements alone may not establish the cause of an operating problem, particularly where the available data lack information about component configuration, process settings or maintenance history.
Siemens' ONE Tech Company programme is intended to strengthen collaboration between its businesses and expand the development of digital products. The reported increase in digital revenue describes the wider portfolio rather than income attributable exclusively to industrial AI.
Electrical infrastructure demand also increased during the year, particularly among customers developing data centres. Siemens reported that data-centre-related orders doubled in the final quarter, with approximately €7 billion of its backlog associated with products serving that market.
Data-centre electrical infrastructure includes equipment used for power distribution, protection, switching, measurement and control. These systems must be specified according to the facility's connected load, operating conditions and resilience requirements.
Large computing installations can place substantial demands on electrical distribution systems. Equipment selection must account for normal operation, foreseeable changes in load and the arrangements required to maintain service when part of the installation becomes unavailable.
The €7 billion data-centre backlog covers multiple products and projects. It should not be interpreted as an individual equipment order or as revenue already recognised.
Rail infrastructure provided another significant source of orders. Mobility projects can involve rolling stock, signalling and associated services, with manufacturing, testing and commissioning carried out according to extended contractual programmes.
Execution of these projects depends on engineering resources, supplier capacity and coordination between production facilities. Large orders may require substantial work before the completed equipment can be accepted and placed into operation.
Siemens reported full-year net income of €9.5 billion, compared with €10.4 billion in fiscal 2025. The previous year's result included a €2.1 billion gain from the disposal of Innomotics, affecting the comparison between the two periods.
The group has raised its medium-term comparable revenue growth target to between 7% and 11%, replacing its previous range of 6% to 9%.
For fiscal 2027, Siemens expects comparable revenue growth of 8% to 12% in Digital Industries, 11% to 13% in Smart Infrastructure and 6% to 8% in Mobility.
Its group-level outlook anticipates comparable revenue growth of between 9% and 11%, with a book-to-bill ratio remaining above one. These forecasts are based on the expected scope of Siemens following its planned reduction in ownership of Siemens Healthineers.
The proposed transaction would transfer 34.1% of Siemens' holding in Healthineers directly to Siemens shareholders, subject to the applicable approvals and completion arrangements. Its effects have been considered in the company's forward guidance.
Siemens enters fiscal 2027 with a €143 billion order backlog spanning industrial technology, electrical infrastructure and transport programmes. Delivery schedules and continued software demand will determine how that work translates into manufacturing activity and revenue over the coming periods.
