Siemens Poised for a Combination of Cyclical and Secular Growth in Fiscal 2026

Siemens is a disparate portfolio of high-quality businesses across various sectors. The Siemens Energy spinoff has sharpened returns and lowered cyclicality, while ongoing monetization of the Siemens Healthineers stake to fund software acquisitions raises questions about the long-term role of the remaining holding. All its businesses have strong product portfolios to compete in long-term, attractive end markets that benefit from the secular growth trends of digitalization and the energy transition. In addition, its installed base of long-life industrial equipment requires a constant stream of aftermarket upgrades and maintenance, underpinning its high-single-digit earnings growth ambition.