Siemens Healthineers Cuts Revenue Outlook on Diagnostics Weakness, Raises EPS Guidance on Tariff Refunds
The German medical technology company delivered strong equipment orders but lowered its fiscal 2026 revenue growth forecast as its Diagnostics segment continues to struggle in China.
Revenue Outlook Revised Lower
Siemens Healthineers AG has lowered its fiscal 2026 revenue growth outlook to 3.5% to 4%, down from previous guidance of 4.5% to 5%, citing continued weakness in its Diagnostics segment, CEO Bernd Montag announced on the company's third-quarter earnings call (earnings call, 2026-07-31).
Despite the revenue reduction, the company raised both ends of its earnings per share guidance by €0.15, "which is exactly the impact of tariff refunds received in Q3," Montag said. The tariff refunds contributed 490 basis points to the Imaging segment margin and 350 basis points to Precision Therapy (earnings call, 2026-07-31).
Strong Equipment Orders Offset by Diagnostics Headwinds
The company reported an "outstanding equipment book-to-bill of 1.27 driven by our product strength and supported by new value partnerships," according to Montag. Even excluding value partnerships, the equipment book-to-bill stood at approximately 1.17 in Q3 (earnings call, 2026-07-31).
The quarter included two major U.S. value partnerships totaling "several hundred million euros in terms of equipment order intake," including a 10-year strategic alliance with Cleveland Clinic and a multiyear partnership with Vanderbilt Health (earnings call, 2026-07-31).
However, Diagnostics remains challenged. "Diagnostics is still challenged by the structural market rebasing in China and revenue dilution from our legacy platforms," Montag explained, adding that "the expected slowdown of the decline for Q3 has not materialized in the Diagnostics business" (earnings call, 2026-07-31).
Segment Performance Mixed
The company's "synergetic core" of Imaging and Precision Therapy grew 5% in Q3, with Precision Therapy achieving particularly strong growth of 9%. Imaging growth was softer, facing "tough comps of 12% in the prior year quarter and saw some revenue shifts into the next quarter," Montag said (earnings call, 2026-07-31).
CFO Jochen Schmitz noted that before tariff refunds, the Imaging margin stood at 21.6%, down from 23.7% in the prior year quarter, while Precision Therapy's adjusted margin was 14.1% (earnings call, 2026-07-31).
Innovation Momentum Continues
Siemens Healthineers highlighted several product innovations, including its photon-counting CT technology, which now accounts for "roughly 30% of our total CT equipment order volume," helping the company gain CT market share in the U.S. (earnings call, 2026-07-31).
The company's Radiopharmaceuticals business is "surpassing the USD 1 billion mark this year" with double-digit growth rates, according to Montag (earnings call, 2026-07-31).
At the ADLM trade show, the Diagnostics segment launched Atellica Forte, an evolution of its chemistry and immunoassay platform with new AI integration and expanded testing capabilities using minimal blood samples (earnings call, 2026-07-31).
Siemens Deconsolidation on Track
Montag provided an update on the upcoming deconsolidation from parent company Siemens AG, stating the company is "well advanced with our preparations for the spin and in very constructive discussions with Siemens AG" regarding refinancing and shared services (earnings call, 2026-07-31).
According to MarginX data, the company has upcoming investor roadshows scheduled in London and the U.S. in early August, followed by participation in the Jefferies Swiss Healthcare Summit in September.
This article was generated by MarginX from the earnings call on 2026-07-31. It is not investment advice.