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Siemens raises fiscal 2026 outlook on AI and data-center demand 9-month FY2026 revenue €59.7B, up ~7% comparable Q3 book-to-bill hits 1.34 as orders climb €300M invested in a German "electrical backbone," ~700 new jobs by 2030 CEO Roland Busch headlines CES 2026 on industrial AI Nvidia partnership pushes digital-twin manufacturing forward Siemens raises fiscal 2026 outlook on AI and data-center demand 9-month FY2026 revenue €59.7B, up ~7% comparable Q3 book-to-bill hits 1.34 as orders climb €300M invested in a German "electrical backbone," ~700 new jobs by 2030 CEO Roland Busch headlines CES 2026 on industrial AI Nvidia partnership pushes digital-twin manufacturing forward
Company  /  Industrial Technology

The company that quietly runs your factory, your train, and your air conditioning

The company Werner von Siemens started with a telegraph in 1847 now wants to be the operating system for the physical world - one factory, train, and power grid at a time.

Most companies want you to know their name. Siemens has spent 178 years being the name behind the names. It does not sell you a phone, a car, or a cup of coffee. It sells the automation controllers that build the phone, the software that designs the car, the switchgear that keeps the roaster's power steady, and the trains that carry the beans. If the modern world were a stage play, Siemens would be the one company you never see and could not run the show without.

Founded in a Berlin backyard in 1847 as a telegraph workshop, Siemens is today the largest industrial manufacturing company in Europe, with roughly 313,000 employees and operations in about 190 countries. It reported around €78 billion in revenue for fiscal 2025. And for all its age, its current pitch sounds startlingly of-the-moment: Siemens wants to build what its chief executive calls an "industrial AI operating system" - software that helps machines design, build, and run themselves.

1847
Founded in Berlin
~313k
Employees worldwide
€78B
FY2025 revenue
~190
Countries of operation

What it actually doesFour companies wearing one name

It is easier to understand Siemens as four businesses stitched together than as a single thing. Digital Industries is the factory arm - the SIMATIC controllers and S7 programmable logic controllers that sit inside assembly lines from Detroit to Shenzhen, plus a deep bench of engineering software: NX for design, Teamcenter for managing a product's whole life, and Simcenter for simulation. Smart Infrastructure handles buildings and power - the switchgear, grid equipment, and the Desigo and APOGEE systems that decide when your office turns the air conditioning down. Mobility builds trains, metros, signaling, and rail electrification. And Siemens Healthineers, publicly listed but majority-owned, makes MRI and CT scanners and, through Varian, cancer-treatment machines.

Underneath all four runs a fifth idea: software as the connective tissue. Siemens' Xcelerator platform bundles its own tools with partner software and IoT-enabled hardware into something closer to an app store for industry than a catalog of parts.

A useful way to think about Siemens: it doesn't build your car. It sells the tools that build every car.

Who buys itThe customers you'd never guess

Siemens' customers are rarely consumers and almost always the organizations that serve them. Carmakers and electronics giants automate their plants with Siemens gear. Utilities and grid operators buy its electrification hardware. Cities and building owners run their properties on its controls. Rail and transit authorities order its trains and signaling. Hospitals and diagnostic labs depend on Healthineers imaging. And in a twist that surprised even Siemens, the AI boom has turned data-center operators into a fast-growing customer group - because data centers need power distribution, cooling, and building automation as much as they need chips.

Digital Industries
Factory
Smart Infrastructure
Grid
Mobility
Rail
Healthineers
Health
The four Siemens, roughly by reach. Note: illustrative segment map, not exact revenue shares - each line is a full business in its own right.

The problem it solvesTesting a factory before you pour the concrete

The idea Siemens has bet the most on is the digital twin: a live, physics-accurate software model of a product, a machine, or an entire factory. With a twin, an engineer can lay out a production line, run it, break it, and tune it - all in software - before a single beam is welded. That saves the two most expensive things in industry: time and rework. Extend the twin to a running plant and it becomes a control room, flagging a wearing bearing before it fails or nudging energy use down when demand spikes.

This is where Siemens' 2026 partnership with Nvidia matters. Pair Siemens' simulation software with GPU horsepower and the twins get faster and richer - close enough to reality that a factory can be commissioned in software first. The much-hyped "industrial metaverse," in Siemens' hands, is less about avatars and more about a plant that exists in code before it exists in steel.

"We are building the industrial AI operating system throughout the entire value chain, from design and engineering to manufacturing operations and into supply chain." - Roland Busch, CEO

How it's differentOwning the layer beneath the winners

In automation, Siemens competes with ABB, Schneider Electric, Rockwell Automation, Emerson, and Mitsubishi Electric. In engineering software, its rivals are Dassault Systemes, PTC, and Autodesk. In rail, Alstom and China's CRRC; in imaging, GE HealthCare and Philips. Plenty of companies are strong in one of these lanes. Siemens' edge is that it sits in several at once and connects them with software - the controller on the floor, the simulation that designed the part, and the platform that ties both to the enterprise. Depth in any single fight is arguable; the breadth is hard to copy.

There is also a strategic discipline here that is easy to miss. Over 25 years Siemens has spun off businesses that became giants on their own - Infineon (semiconductors, 1999), Osram (lighting, 2013), and Siemens Energy (2020) - and floated Healthineers in 2018. Letting go of good businesses to sharpen focus on industrial technology is the kind of decision most conglomerates avoid.

The numbersA machine that keeps compounding

Siemens continues to grow. In the first nine months of fiscal 2026, orders reached €73.4 billion (up about 10% on a comparable basis) and revenue was €59.7 billion (up about 7%). The Q3 book-to-bill ratio - new orders against revenue billed - hit 1.34, a sign the backlog is filling faster than it empties. On the strength of AI and data-center demand, the company raised its full-year outlook.

0 50 100 €75.9B €78B* €59.7B FY2024 FY2025 FY2026 (9mo)
Group revenue, in euros. *FY2025 figure approximate; FY2026 covers only the first nine months, so the bar is a partial year - not a decline.

The business modelBoxes, subscriptions, and long goodbyes

Siemens makes money in more ways than most companies its size. There is one-time hardware - controllers, drives, switchgear, trains. There is turnkey project work, like signaling an entire rail corridor. There is a fast-growing software business, increasingly sold as subscriptions through Xcelerator. There is a long tail of service and maintenance contracts that keep revenue arriving for decades after the sale. And through Siemens Financial Services, the company will even finance the equipment its customers buy. The recurring, software-and-service side is the part Siemens most wants to grow, because it smooths out the lumpiness of big industrial orders.

The founder's shadowAn 1847 workshop and a unit of measurement

The company's origin is almost quaint next to its scale today. Werner von Siemens and Johann Georg Halske started with a telegraph in Berlin. Werner went on to describe the dynamo-electric principle, a foundation of large-scale power generation, and built one of the first electric railways. His legacy is literally a unit of physics: the siemens (S), the SI measure of electrical conductance, carries his name. Few founders can say a law of nature is filed under their surname.

The path here178 years, told in nine steps

1847
A telegraph workshop opens in Berlin
Werner von Siemens and Johann Georg Halske found the company that becomes Siemens.
1866
The dynamo principle
Werner describes the dynamo-electric principle, helping launch large-scale power generation.
1966
Modern Siemens AG forms
Three predecessor companies merge into Siemens AG in its present corporate form.
1999
Infineon spun off
The semiconductor business is carved out as Infineon Technologies.
2018
Healthineers goes public
Siemens floats its medical-technology arm while keeping majority control.
2020
Energy spin-off
Siemens Energy is separated and listed, sharpening the group's focus.
2022
Xcelerator launches
An open digital platform bundles software, IoT hardware and services.
2026
Outlook raised on AI demand
Strong orders from AI and data centers push Siemens to lift its fiscal 2026 outlook.

Where it fitsThe quiet infrastructure of everything

Zoom out and Siemens occupies a strange, durable position: not the flashiest company in any single market, but present in almost all of them that touch the physical economy. When people say "German engineering," they usually picture a car. The larger story is a 178-year-old firm whose controllers, software, and trains sit under the surface of daily life. If the next decade of AI is not only about words on a screen but about machines that design and run themselves, Siemens has spent a very long time getting ready for exactly that. Whether it becomes the operating system for the physical world is unsettled - but it is one of the few companies old enough, and broad enough, to try.

Figures reflect Siemens fiscal reporting through Q3 FY2026; segment infographic is illustrative.