Siemens profits soar on software demand, AI 'boom'

Core Insights - Siemens reported a significant increase in quarterly profits, attributed to the demand for production software and the growth in artificial intelligence [1][2] - The company’s net profit reached 1.98 billion euros ($2.2 billion) for the period from April to June, marking a 50% increase year-over-year, exceeding analyst expectations [2] - Siemens' electrification arm experienced over 20% growth, while the overall revenue for the smart infrastructure division rose by 10% compared to the previous year [3] Financial Performance - Revenue for the quarter was 18.9 billion euros, with a notable performance in the software business, securing several major contracts [2] - Despite strong performance in certain areas, the industrial automation business saw a 16% decline in orders, and the mobility division, which includes train operations, experienced a 70% drop in orders [4] Market Outlook - Siemens maintains a revenue growth forecast of 4% to 8% for the 2024 fiscal year, which ends in September, although it cautioned that results may lean towards the lower end of this range due to challenging economic conditions in China and Europe [4][5] - The company noted that demand in China remains muted, reflecting broader industrial demand challenges [5]