Key takeaways
- Siemens quarterly orders jump 58% to record €34.8 billion
- AI data center orders double as backlog reaches €143 billion
- Industrial profit rises 22% as Siemens raises growth targets
German industrial giant Siemens reported a 58% surge in quarterly orders to a record €34.8 billion on Thursday, November 12, as growing demand for AI data centers, electrical infrastructure and rail transportation pushed its total order backlog to €143 billion.
According to the company's official earnings release, fourth-quarter revenue climbed 11% to €23.7 billion, while industrial profit increased 22% to a record €3.9 billion. The results exceeded analyst expectations and helped Siemens shares advance approximately 4.7% in early Frankfurt trading.
Siemens AI Data Center Orders Double as Backlog Hits €143B
Siemens reported that orders from data center customers doubled during the fourth quarter, particularly across its Smart Infrastructure division, which supplies equipment for electrical distribution and building operations.
Approximately €7 billion of the company's €143 billion backlog now comes from data center products, reflecting the growing importance of power and cooling equipment in the AI infrastructure market.
The development follows Siemens Energy's record backlog, which reached €164 billion, including approximately €15 billion linked to data centers. Siemens Energy is a separately listed company, with a greater focus on power generation and grid infrastructure.
Together, the results illustrate how AI investment is creating opportunities beyond GPUs. Even as Micron and other chipmakers experience volatile trading, demand for the physical infrastructure supporting their products remains substantial.
However, Siemens' 58% order growth was not driven exclusively by AI. Major transportation contracts in its Mobility division also contributed significantly to the quarterly increase.
Siemens Raises Growth Forecast as Industrial AI Expands
Following its record results, Siemens raised its medium-term comparable revenue growth target to 7%–11%, compared with its previous expectation of 6%–9%.
For fiscal 2027, management expects comparable revenue growth of 9%–11%, with Smart Infrastructure projected to expand 11%–13%.
The company's digital business also generated €10.9 billion in fiscal 2026 revenue, representing 16% growth. This reflects Siemens' expanding role in industrial software, automation and AI-enabled manufacturing.
The stronger outlook arrives as AI infrastructure companies face increasing scrutiny over borrowing costs, construction schedules and the profitability of massive computing investments.
Unlike businesses developing and operating AI cloud infrastructure, Siemens generates revenue from selling equipment, software and engineering solutions needed to build and operate those facilities.
That distinction matters because AI-related borrowing has raised questions about whether future computing revenue can justify today's capital expenditure.
Can Siemens Sustain Its AI Infrastructure Growth?
Siemens generated a record €12.1 billion in free cash flow during fiscal 2026, providing financial flexibility as it expands its industrial technology portfolio.
The company also proposed increasing its annual dividend to €5.50 per share from €5.35, signaling confidence in its cash generation.
Nevertheless, continued expansion depends partly on whether large technology companies maintain investment in data centers. Rising Treasury yields and financing costs could eventually affect construction activity and infrastructure orders.
