Siemens raised its full-year earnings guidance on Thursday after reporting a record quarterly industrial profit, as surging global investment in artificial intelligence infrastructure fueled strong demand for its automation software, smart factory technologies and data center equipment.
The German engineering and industrial technology group said the AI investment cycle is becoming an increasingly powerful growth engine, with hyperscale data center operators, semiconductor manufacturers and industrial customers ramping up spending to expand computing capacity and modernize production facilities.
Companies in the global industrial sector supplying the “picks and shovels” of the AI revolution are becoming some of the biggest beneficiaries of an unprecedented wave of capital expenditure by technology firms. While much of the attention has focused on chipmakers such as Nvidia, industrial automation companies including Siemens, ABB and Schneider Electric are increasingly benefiting from the construction of AI data centers, semiconductor fabs, electricity infrastructure and digitally connected factories.
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“Our sharp focus on driving industrial AI and our strong positioning in attractive markets give us a solid foundation for our success,” Chief Executive Roland Busch told reporters.
Busch said Siemens’ industrial AI portfolio is helping customers accelerate product development, improve factory productivity and automate increasingly complex manufacturing processes, positioning the company at the center of digital transformation across multiple industries.
He added that demand from electronics and semiconductor manufacturers remains exceptionally strong as companies race to expand production capacity for AI chips and related hardware.
“There is tremendous demand for electronics,” Busch said. “They are building more and more factories and they need to be automated, which is where Siemens’ business comes in.”
The company said it now works with nine of the world’s 10 largest data center operators, highlighting how deeply embedded Siemens has become in the AI infrastructure supply chain. Orders from data center customers have increased by a triple-digit percentage during the first nine months of Siemens’ 2026 financial year, reflecting accelerating investment by hyperscale cloud providers that continue to spend aggressively on AI computing capacity.
Beyond technology, Siemens also reported improving business sentiment among aerospace, defense and machine-building customers, sectors that have seen rising investment as governments increase defense spending and manufacturers continue reshoring production and modernizing industrial facilities.
The company is also benefiting from demand for AI-enabled software that allows manufacturers and building operators to optimize production, reduce energy consumption and improve operational efficiency through predictive maintenance and digital twins.
The results reveal that AI is now reshaping industrial demand well beyond the technology sector. Every new data center requires sophisticated electrical systems, power distribution, industrial automation, cooling equipment and factory automation to manufacture the chips and hardware that power AI models, creating significant opportunities for diversified engineering companies.
For the quarter ended June, Siemens reported industrial profit of €3.52 billion ($4.09 billion), up 25% from a year earlier and comfortably above analysts’ consensus forecast of €3.18 billion.
Revenue increased 7% to €20.79 billion, exceeding expectations of €20.64 billion, while new orders rose 13% to a record €27.90 billion, providing strong visibility into future revenue growth.
The record order intake suggests customers remain willing to commit capital to long-term industrial and digital infrastructure projects despite ongoing geopolitical uncertainty and uneven economic growth across major markets.
Buoyed by the stronger-than-expected performance, Siemens raised its earnings-per-share forecast for the fiscal year ending September to between €11.20 and €11.50, compared with previous guidance of €10.70 to €11.10.
The guidance upgrade reflects management’s growing confidence that demand linked to AI infrastructure and industrial digitization will continue to offset pockets of weakness elsewhere in the manufacturing sector.
Siemens joins Swiss industrial automation group ABB and French energy management specialist Schneider Electric as a principal beneficiary of the global AI investment boom.
According to the International Energy Agency, capital expenditure by the world’s five largest technology companies is expected to rise 75% in 2026 from more than $400 billion in 2025, driven largely by investments in AI data centers, advanced semiconductors, networking equipment and electricity infrastructure.
That spending wave has created a multi-year opportunity for companies supplying the electrical equipment, industrial software, automation systems and digital technologies that underpin AI infrastructure.
Despite the strong results, Siemens shares fell 5.2% in mid-morning trading as investors locked in profits following a sustained rally. Prior to Thursday’s results, the stock had gained nearly 20% this year and reached a record high of €291.50, suggesting much of the earnings strength had already been priced into the shares.
Separately, Siemens said it had reached an agreement with German tax authorities on the treatment of shares in Siemens Healthineers that it plans to distribute to investors as part of its planned spin-off. The company said the distribution will be tax-free for Siemens shareholders.
Siemens has spent the past several years repositioning itself from a traditional industrial conglomerate into a software and automation company focused on digital manufacturing, smart infrastructure and industrial AI. Through platforms such as Siemens Xcelerator and its expanding AI-enabled industrial software portfolio, the company enables manufacturers to design products digitally, automate production lines and optimize operations using real-time data and machine learning.
The emergence of generative AI has significantly expanded that opportunity.