Siemens Stock: Record Profits Propel Shares to New Heights

Siemens AG reported a record-breaking profit of nine billion euros after taxes for the fiscal year 2023/24, driving its stock to an all-time high. The technology giant achieved a revenue of 75.9 billion euros, representing a comparable growth of three percent. This positive news catalyzed a significant surge in Siemens' share price, which closed at 188.20 euros, marking a 4.91 percent increase. Looking ahead, the company forecasts revenue growth between three to seven percent on a comparable basis for the upcoming fiscal year.

Navigating Challenges Amid Growth

Despite the overall success, Siemens faces headwinds in its Digital Industries sector, where weak demand in factory automation may lead to potential job cuts of up to 5,000 positions globally. To address these challenges and foster profitable growth, CEO Roland Busch announced the "One Tech Company" program. However, the company maintains a long-term optimistic outlook for its automation business, with plans to continue investments in key locations. Analysts remain bullish, valuing Siemens shares at an average fair value of 199.10 euros, signaling further growth potential despite the current market highs.