Stock Markets February 5, 2026

Siemens Healthineers posts steady Q1 as imaging and therapy offset diagnostics weakness

Imaging and Varian-led Precision Therapy growth cushions a diagnostics slump while currency and tariff pressures weigh

By Priya Menon
Siemens Healthineers posts steady Q1 as imaging and therapy offset diagnostics weakness

Siemens Healthineers delivered a steady first quarter, with comparable revenue up 3.8% to 5.4 billion euros. Strength in Imaging and Precision Therapy - led by Varian - offset a 3.1% decline in Diagnostics and headwinds from currency, tariffs and a higher tax rate. Adjusted EBIT fell 1.5% to 809 million euros, keeping the adjusted margin at 15.0%. The company reiterated full-year guidance for 5%-6% comparable revenue growth and adjusted EPS of 2.20 to 2.40 euros.

Key Points

  • Comparable revenue rose 3.8% to 5.4 billion euros, driven by Imaging and Precision Therapy.
  • Adjusted EBIT fell 1.5% to 809 million euros, with the adjusted margin steady at 15.0%; adverse FX, higher tariffs and a higher tax rate offset operating gains.
  • Diagnostics revenue declined 3.1% due to a structural downturn in China, while Imaging (+5.7%) and Precision Therapy (+5.9%) expanded, led by Varian.

Siemens Healthineers reported a broadly steady first-quarter performance, driven primarily by demand for imaging equipment and cancer therapy systems that helped counteract a pullback in its diagnostics division and the negative effects of currency movements.

For the quarter ended Dec. 31, comparable revenue rose 3.8%, reaching total sales of 5.4 billion euros. The top-line progress was concentrated in the group's Imaging and Precision Therapy segments.

Profitability and margins

Adjusted earnings before interest and taxes slipped 1.5% to 809 million euros, with the adjusted operating margin remaining unchanged at 15.0%. Although operating income improved, gains were largely neutralized by adverse foreign exchange movements, higher tariffs and an increased tax rate.

Business-line performance

  • Imaging: Comparable revenue climbed 5.7%, supported by particularly strong demand in the Americas.
  • Precision Therapy: Sales rose 5.9%, with Varian cited as the primary growth driver within the division.
  • Diagnostics: Revenue contracted 3.1% on a comparable basis, chiefly reflecting a structural downturn in the Chinese market and materially weaker margins in the segment.

Management confirmed its full-year outlook, maintaining an expectation for comparable revenue growth of 5% to 6% and adjusted earnings per share in the range of 2.20 to 2.40 euros. The company said it expects to meet that guidance despite continuing geopolitical friction, tariff pressures and currency headwinds.

Implications for markets and sectors

The quarter underscores a split within medical technology demand, where capital-intensive imaging and oncology therapy equipment show resilience while diagnostics volumes are vulnerable to regional structural shifts. Currency and trade-related costs remain an operational constraint that can offset operational gains.

Conclusion

Overall, Siemens Healthineers posted a steady start to the fiscal year with solid contributions from imaging and precision therapy balancing a diagnostics downturn and external cost pressures. The company is standing by its full-year financial targets even as it navigates geopolitical, tariff and currency uncertainties.

Risks

  • Ongoing geopolitical tensions, tariffs and currency headwinds that could continue to offset operating improvements - impacting corporate profitability and margins.
  • Structural downturn in the Chinese market weighing on Diagnostics revenue and margins - affecting the diagnostics segment and related supply chains.
  • Higher tax rates and adverse foreign exchange effects that reduced adjusted EBIT despite higher operating income - posing risks to net profitability.

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