Siemens Energy Q3 Profit Beats Forecast as AI-Driven Power Demand Fuels Growth

Siemens Energy AG (ETR: ENR1n) posted stronger-than-expected third-quarter earnings, supported by soaring demand for gas turbines and power grid equipment as AI data center expansion and global energy infrastructure investments continued to accelerate.

For the quarter ended June 30, the German energy technology company reported net income of €1.19 billion, up from €697 million a year earlier. The result exceeded the S&P Global Visible Alpha analyst consensus of €983 million, highlighting the company's solid operational performance.

Quarterly revenue climbed 17.5% year over year to €11.45 billion, surpassing analysts' expectations of €11.24 billion. The strong performance was driven by broad-based growth across Siemens Energy's core businesses.

The company's Gas Services division benefited from robust demand for large gas turbines, particularly in the United States, where the rapid expansion of AI-powered hyperscale data centers has increased electricity demand. Additional momentum came from the Middle East, where governments continued investing heavily in power generation and transmission infrastructure.

Meanwhile, Siemens Energy's Grid Technologies business recorded strong demand for transmission equipment as utilities worldwide upgraded electricity networks to support higher power consumption and the integration of renewable energy.

The company also achieved record quarterly orders of €17.93 billion, pushing its total order backlog to an all-time high of €162 billion. The United States remained one of the strongest growth markets, reflecting sustained investment in energy infrastructure.

Another major milestone was the return to profitability at Siemens Gamesa. The wind turbine unit reported a quarterly profit of €56 million, compared with a €425 million loss in the same period last year. The turnaround was supported by improved productivity and stronger cost efficiency.

Looking ahead, Siemens Energy reaffirmed the fiscal 2026 outlook it raised after the first half of the year. The company now expects its profit margin before special items to finish near the upper end of its 10% to 12% guidance range. It also maintained forecasts for 14% to 16% comparable revenue growth, around €4 billion in net income, and approximately €8 billion in free cash flow before tax, reflecting confidence in continued demand across its energy businesses.