Siemens Stock: Q1 Profits Soar on Innomotics Sale

Siemens has marked an extraordinary start to its 2025 fiscal year, with shares surging over 7% to reach €227.50 in early trading, driven by exceptional first-quarter results. The technology giant reported a remarkable 52% increase in net profit to €3.9 billion, largely attributed to the lucrative sale of its Innomotics subsidiary, which contributed €2.1 billion in special gains. Revenue showed moderate growth of 3% to €18.4 billion, exceeding market expectations. Despite a 7% decline in order intake to €20.1 billion, the company maintains a robust order backlog of €118 billion, demonstrating its strong market position.

Positive Outlook Amid Market Challenges

The company remains optimistic about its performance trajectory, maintaining its forecast for comparable revenue growth between 3% and 7% for fiscal 2025. Siemens anticipates earnings per share to range from €10.40 to €11.00, excluding the Innomotics transaction impact. Notably, encouraging signs are emerging from the Chinese market, particularly in automation business, where inventory reduction is progressing as planned with normalization expected by the end of the second quarter. The company's growth momentum is particularly strong in software solutions and intelligent infrastructure segments.