Siemens Healthineers cuts revenue outlook to 3.5%-4% on diagnostics weakness

Siemens Healthineers cut its fiscal 2026 revenue growth forecast to 3.5%-4.0% from 4.5%-5.0%, citing China's procurement policy weighing on its diagnostics business.

The Erlangen-based company said China's volume-based procurement and lower reimbursement rates have depressed prices and sales volumes in the country's diagnostics market. The company raised its adjusted earnings per share outlook to €2.35-€2.45 from €2.20-€2.30, reflecting US tariff refunds.

Third-quarter revenue rose 1.8% to €5.76 billion ($6.63 billion), missing the LSEG consensus estimate by 0.8%. Adjusted operating profit margin expanded to 19.1% from 16.8% a year earlier. Analysts had expected EPS of €0.529, up from €0.490 in the prior-year quarter, on revenue of approximately €5.67 billion.

Metric	Actual	Consensus	Beat/Miss
Revenue	€5.76B	LSEG est.	-0.8%
Adj. operating margin	19.1%	—	+230bps YoY

The guidance cut marks the second reduction this fiscal year. In May, the company trimmed comparable revenue growth to 4.5%-5.0% from 5.0%-6.0% and adjusted EPS to €2.20-€2.30, blaming China weakness and inflationary pressure. The stock closed Wednesday at €37.82, up 5.17%, though it remains down roughly 16% year to date and 5.53% below its 200-day moving average.

The company has been supporting its share price through a buyback program with a €230 million ceiling, repurchasing 2,676,093 shares since June 1. July brought a strategic win with Vanderbilt Health entering a long-term "Value Partnership" valued at $87 million. Siemens AG, the majority shareholder, sold roughly 2% of its stake in February for about €1.4 billion and has indicated plans to treat Healthineers as a pure financial holding.

The revenue cut reflects weaker-than-expected demand in diagnostics, a segment facing structural pricing pressure in China. Investors will watch the company's Q3 earnings call for updated segment margins and commentary on the 2030 outlook published July 23.

This article is for informational purposes only and does not constitute investment advice.