Medical technology firm Siemens Healthineers cut its 2026 revenue growth forecast on Friday to a range of 3.5% to 4%, as China’s procurement policy weighs on its diagnostics business.
China’s volume-based procurement programme and lower reimbursement rates have depressed prices and sales volumes in the country’s diagnostics market. The German company also raised the outlook for its adjusted earnings per share to between €2.35 and €2.45, reflecting the one-off amount expected from U.S. tariff refunds after the Supreme Court struck down some of the levies in February.
The company still needs to apply for additional refunds, which will most likely not be received before 2027, Chief Financial Officer Jochen Schmitz said during a press call. The Erlangen-based firm had previously forecast annual revenue growth of 5% to 6% and earnings of €2.20 to €2.40 per share.
Siemens Healthineers reported revenue growth of 1.8% to €5.76 billion ($6.63 billion) for its fiscal third quarter, which narrowly missed an LSEG consensus estimate.
Diagnostics revenue fell 5.5% in the same period, and Schmitz said it would likely decline by a mid-single-digit percentage also in the fourth quarter.
However, the company’s adjusted operating profit margin increased to 19.1% in the quarter from 16.8% a year ago.
Siemens Healthineers’ shares initially fell more than 3%, but quickly reversed course to trade 1.4% higher at 0726 GMT.
