Strong start to fiscal 2026 and outlook confirmed
Company reported a good start to FY2026 and confirmed its full-year revenue growth and adjusted EPS outlook, citing strong operational performance in core businesses that offsets material headwinds.
Siemens Healthineers AG Unsponsored ADR
· SMMNY
January 29th, 2026
Summary
- Earnings Call Date:
- 2026-01-29
- Change Since:
- -21.48%
- Next Earnings Date:
- 2026-07-31
Earnings Call Sentiment
PositiveThe call presented a mix of strong operational performance in Imaging and Precision Therapy (solid growth, margin expansion ex-headwinds, strong Americas performance, product and partnership momentum, and a Moody's investment-grade rating) offset by significant challenges in Diagnostics driven by China-specific structural changes (VBP and reimbursement reductions), tariff and FX headwinds, and near-term guidance caution for Q2. Management emphasized that core synergies and operational improvements largely offset macro headwinds in Q1 and confirmed the full-year outlook, but Diagnostics and China pose material, near-term headwinds that may temper segment-level performance.
Company Guidance
Siemens Healthineers confirmed its fiscal 2026 outlook while flagging short‑term China headwinds in Diagnostics: Q1 showed Imaging +5.7% (synergistic core ~6%), Precision Therapy +5.9%, Diagnostics -3%, and group revenue +3.8%; Americas +9% and China -5% (driven solely by Diagnostics). Key profit metrics: Imaging adjusted EBIT margin 21.6%, group adjusted EBIT margin 15% (flat YoY), and operational margin expansion excluding tariffs/FX of ~200 bps in Q1 (Imaging >100 bps ex‑special items; Precision Therapy ~400 bps operational uplift, with ~100 bps from special items). EPS: adjusted EPS was down ~3% YoY (Q1 down ~€0.02), but excluding tariffs and FX EPS rose ~17% YoY; Q1 saw an EPS headwind of ~€0.10 (FX ~ $0.04 in Q1, ~€0.15 full year; tariffs ~€0.06 in Q1, ~€0.15 full year) and an operational EPS improvement of ~€0.08, with a full‑year operational EPS uplift target of ~€0.25. For Q2 the company expects group growth below its 5–6% outlook range, Imaging to grow mid‑single digits, Precision Therapy mid‑ to high‑single digits, Diagnostics to decline further, and segment margins to be below prior‑year levels due to tariffs and FX; equipment book‑to‑bill in the synergistic core was 1.12 and Atellica grew ~20% in Q1 to ~70% of core lab sales.
Imaging and Precision Therapy growth
Synergetic portfolio (Imaging and Precision Therapy) delivered strong underlying growth (~6% combined): Imaging revenue growth of 5.7% and Precision Therapy growth of 5.9%, with equipment book-to-bill of 1.12.
Operational margin expansion (ex headwinds)
Operational margin expansion excluding tariffs and FX: Imaging operational margin expansion north of 100 basis points; Precision Therapy delivered almost 400 basis points operational margin expansion; group operational margin expansion ~200 basis points when excluding tariffs/FX.
Imaging adjusted EBIT margin and segment profitability
Imaging adjusted EBIT margin reported at 21.6%, reflecting strong operational margin improvement despite prior-year special items and current tariffs/FX headwinds.
Varian performance within Precision Therapy
Varian contributed 9% revenue growth to Precision Therapy and helped lift Varian/segment margins (Varian represented ~60% of the segment and Varian-related special items contributed meaningfully to the quarter's margin improvement).
Adjusted EPS resilient after adjusting for headwinds
Reported adjusted EPS was down ~3% year-over-year (EUR 0.02), but excluding tariffs and foreign exchange headwinds (~EUR 0.10 in Q1) adjusted EPS grew ~17% operationally; operational EPS improvement in Q1 was ~EUR 0.08, supporting the FY26 EPS improvement target (~EUR 0.25).
Regional strength: Americas
Americas region grew 9%, contributing strongly to group revenue growth and reflecting continued demand in key markets.
Atellica franchise momentum
Atellica franchise grew roughly 20% in Q1 and now represents almost 70% of core lab sales, indicating strong portfolio adoption in diagnostics outside China.
Strategic partnerships and commercial wins
New 10-year value partnership with Onvida (Southern Arizona) includes a $55 million capital equipment commitment and is expected to exceed $100 million in total value; Vietnam delivered 45 systems across 18 hospitals/clinics in December, including 2 Photon Counting CT systems.
Innovation and product differentiation
Showcased AI-enabled and next-generation technology (Syngo.CT Coronary Cockpit, Photon Counting CT, interventional MRI, new angiography systems with real-time AI denoising), reflecting continued R&D and clinical differentiation.
Credit/finance milestone
Received a strong investment-grade rating from Moody's, a key milestone supporting preparations for deconsolidation and refinancing and demonstrating financial resilience.
Operator
Good morning, ladies and gentlemen, and welcome to Siemens Healthineers Conference Call. As a reminder, this conference is being recorded. Before we begin, I would like to draw your attention to the safe harbor statement on Page 2 of the Siemens Healthineers presentation. This conference call may include forward-looking statements. These statements are based on the company's current expectations and certain assumptions and are, therefore, subject to certain risks and uncertainties. At this time, I would like to turn the call over to your host today, Mr. Marc Koebernick, Head of Investor Relations. Please go ahead, sir.
Marc Koebernick
Thank you, operator. Good morning, and welcome, everyone, to our Q1 earnings call for fiscal 2026. I'd like to thank each one of you for joining us today. At 7:00 this morning, we published our Q1 2026 results. All related material for today's results release are available on the IR section of the Siemens Healthineers web page. In a moment, we'll hear directly from our CEO, Bernd Montag; and our CFO, Jochen Schmitz. And after the presentation, we will have a Q&A session. [Operator Instructions] All the more so as we have quite a tight schedule today with our Annual Shareholders Meeting starting at 10.
Additionally, please note that a full transcript and recording of today's call will be made available on our Investor Relations web page shortly after the session ends. And again, thank you for being here. And now I'd like to turn it over to our CEO, Bernd Montag.
Bernhard Montag
Thanks, Marc, and also a warm welcome from my side. Let me start with a brief look at key takeaways ...
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