Siemens earnings beat estimates on strong demand for electrification, software

Core Insights - Siemens reported better-than-expected quarterly operating profit and confirmed its full-year outlook [1] Financial Performance - Industrial profit for the quarter ending June was €3 billion ($3.3 billion), an 11% increase compared to the same quarter last year, and above analyst consensus [2] - Shares of Siemens were down 0.76% at 8:27 a.m. London time, while the pan-European Stoxx 600 index decreased by 1.04% [2] Business Segments - Growth in the third quarter was attributed to strong demand in electrification and industrial software, although the automation business faced challenges [2] - The software business experienced exceptionally high order growth due to large contract wins for licensed software, which helped profitability despite a decline in automation profits [2] - Smart Infrastructure showed a broad-based increase in profit and profitability year-over-year, driven by higher revenue, increased capacity utilization, and ongoing productivity improvements [3] Outlook - Siemens confirmed its full-year outlook but indicated that comparable revenue growth for the Siemens Group is expected to be at the lower end of the projected 4%-8% range [3]