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Revenue Growth: 6.8% in the first nine months, 3.7% in Q4.

Book to Bill Ratio: 1.14 for fiscal year '25, 1.12 in Q4.

Adjusted EPS: $0.74 excluding tariffs, 10% year-over-year growth.

Free Cash Flow: Improved leverage to 2.8 times EBITDA.

Imaging Revenue Growth: 6.5% in Q4.

Varian Revenue Growth: 1.4% in Q4, strong 21.5% margin excluding tariffs.

Advanced Therapies Revenue Growth: 3.8% in Q4, 19.5% margin excluding tariffs.

Diagnostics Revenue: Flattish year-over-year due to challenges in China.

Proposed Dividend: Increase to EUR1.

Outlook for Fiscal Year 2026: Expected revenue growth of 5% to 6%, adjusted EPS between EUR2.20 and EUR2.40.

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Release Date: November 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Siemens Healthineers AG (SMMNY) achieved growth at the upper end of their outlook range, with all regions except China showing positive results.

The company reported a strong book-to-bill ratio of 1.14 for fiscal year 2025, indicating healthy demand.

Imaging, Varian, and Advanced Therapies segments collectively increased revenue by almost 8%, with Imaging showing continued margin expansion.

The company successfully implemented a transformation program in diagnostics, leading to improved profitability despite challenges in China.

Siemens Healthineers AG (SMMNY) proposed a dividend increase to EUR1, reflecting confidence in their financial performance.

Revenue in China remained flat, with no signs of a sustained market recovery, impacting the company's overall outlook.

Tariffs significantly affected margins, with a reported EUR200 million impact in fiscal year 2025 and an expected EUR400 million in 2026.

The company anticipates macroeconomic challenges, including a strong Euro and tariffs, to negatively impact earnings per share in fiscal year 2026.

Diagnostics segment faced flat revenue growth due to volume-based procurement in China, expected to continue impacting results into 2026.

The company expects revenue growth in Q1 2026 to be below their outlook range of 5% to 6%, with margins also expected to be below the prior year quarter due to tariffs and foreign exchange.

Q: Can you discuss the guidance for fiscal '26 and what factors could lead to achieving the top or bottom end of the range? A: Jochen Schmitz, CFO, explained that achieving the top end of the guidance range would be influenced by strong top-line growth, particularly in segments with higher profitability like Imaging. The guidance assumes flat growth in China, and any positive deviation from this could also impact results. The performance of Varian was highlighted as a positive factor, with its margins reaching the targeted 20%.

Q: What is the contribution of Photon Counting CT to Imaging revenue growth and the CT order book? A: Jochen Schmitz noted that Photon Counting CT and Molecular Imaging are growing faster than the average, contributing significantly to Imaging's 6.5% growth. There is strong market interest in Photon Counting CT, with Siemens Healthineers leading the technology. The demand is translating well into revenue, and it is attracting new customers, including hospital chains and academic centers.

Q: How confident are you about the outlook for China, especially in light of GE's decision to sell their business there? A: CEO Bernhard Montag stated that Siemens Healthineers remains committed to the Chinese market, which is expected to return to mid to high single-digit growth rates. The company has maintained its market share despite challenges and sees China as an attractive market. Montag emphasized that Siemens Healthineers is well-positioned with a strong local presence and workforce.

Q: Can you provide more details on the Imaging guidance and the expected growth drivers? A: Jochen Schmitz confirmed that Imaging is expected to continue its strong growth trajectory, with mid-single-digit growth anticipated for fiscal '26. Key growth drivers include PETNET, Photon Counting CT, and MRI. The company is confident in its growth prospects, supported by a strong order backlog and secular growth drivers.

Q: What are the potential financial implications if Siemens Group exits its stake in Siemens Healthineers? A: Jochen Schmitz stated that the financing structure is at arm's length, and he does not expect significant impacts on interest expenses from a potential Siemens exit. The company is in a healthy rating environment and will manage refinancing needs independently of Siemens' stake decisions.

Q: How are you planning to mitigate tariff impacts post-2022, and what role does manufacturing play in this strategy? A: Jochen Schmitz explained that the majority of tariff mitigation will come from smart pricing and cost control. Manufacturing shifts are considered a long-term strategy and will be executed carefully to ensure sustainability. The company is evaluating options to optimize value-add structures globally.

Q: What are the current market share trends in China, and how do you see them evolving post-anticorruption? A: Bernhard Montag noted that Siemens Healthineers has maintained its market share and number one position in China. The company is well-positioned with a strong local presence and manufacturing capabilities. While local competitors are gaining share, Siemens Healthineers benefits from its scale and comprehensive product offerings.

Q: What is the outlook for Diagnostics, considering the headwinds in China? A: Jochen Schmitz indicated that the impact of volume-based procurement in China will continue throughout fiscal '26. The company is focusing on transforming its core lab solutions and is satisfied with the progress of Atellica. Despite challenges in China, Siemens Healthineers expects healthy market conditions in Europe, North America, and APJ.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.