Siemens Healthineers stock faces slower earnings growth in 2027

Siemens Healthineers reported a strong fourth quarter for fiscal 2026 on November 5, but its outlook for the new financial year points to slower earnings growth. The medical technology group expects comparable revenue to rise by 4.0 to 5.0 percent in fiscal 2027 and adjusted basic earnings per share to range from 2.20 to 2.40 euros, according to the company's results release.

Imaging Leads Fourth-Quarter Growth

Comparable revenue increased 5.9 percent in the fourth quarter to 6.784 billion euros, up 7.3 percent on a reported basis from 6.322 billion euros a year earlier. Imaging was the main growth driver, with comparable revenue up 10.0 percent. Precision Therapy delivered comparable growth of 4.8 percent.

Diagnostics remained the weak spot. Comparable revenue in the segment fell 4.2 percent to 1.067 billion euros, reflecting continued pressure in China and structural changes in the market environment. China is the group's second-largest market and accounts for about 10 percent of revenue, according to Reuters.

Adjusted EBIT declined 2.0 percent to 1.077 billion euros from 1.098 billion euros in the prior-year quarter. The adjusted EBIT margin narrowed to 15.9 percent from 17.4 percent. Siemens Healthineers cited negative currency effects and provisions for legal and product-related risks in Imaging as factors weighing on profitability.

2027 Guidance Sets A Lower Bar

For fiscal 2026, comparable revenue growth reached 4.0 percent and adjusted basic earnings per share came in at 2.42 euros. The 2027 earnings range therefore has a midpoint below the prior year's reported adjusted EPS. Management also said the outlook includes roughly 70 basis points of growth dilution from the partial exit from the ultrasound portfolio and a more cautious assumption for growth in China.

The company expects several structural effects to shape fiscal 2027, including the deconsolidation from Siemens AG and the carve-out of Diagnostics. Management said these moving parts make the earnings bridge more complex. The reported 2026 EPS also included tariff refunds, while fourth-quarter one-off effects mean the underlying comparison is less favorable than the headline figures suggest.

Share Price Holds Near Xetra Basis

Siemens Healthineers stock traded at 42.95 euros on Lang & Schwarz at 11:16 CET on Wednesday, November 11, 0.02 percent above the Xetra close of Tuesday, November 10, at 42.94 euros. The small difference leaves the share close to the previous session's Xetra level while investors assess the lower 2027 earnings range.

Germany's DAX market environment provides the broader backdrop for Siemens Healthineers and other listed German healthcare companies.

Investors can follow more news and analyses on Siemens Healthineers stock as the company continues its investor meetings after the fiscal 2026 results.