Q2 Fiscal Year 2025 

• Very good equipment book-to-bill ratio of 1.14
• Strong comparable revenue growth of 6.8% 
• Imaging comparable revenue growth of 8.7%; very good adjusted EBIT margin of 22.4% 
• Diagnostics comparable revenue growth of 1.0%; adjusted EBIT margin of 6.3% 
• Varian comparable revenue growth of 12.5%; adjusted EBIT margin of 13.2% mainly due to extraordinarily high equipment revenue share 
• Advanced Therapies comparable revenue growth of 3.7%; very good adjusted EBIT margin of 18.5% 
• Overall adjusted EBIT margin of 16.6%, clearly above prior-year quarter 
• Free cash flow of almost €200 million, clearly above prior-year quarter 
• Adjusted basic earnings per share of €0.56, above prior-year quarter

Updated Outlook for Fiscal Year 2025 

We confirm our expectation of comparable revenue growth of between 5% to 6% compared with fiscal year 2024. Due to the geopolitical developments – in particular trade barriers and increased tariffs on a wide range of countries – we now assume an expanded range of between €2.20 and €2.50 (previously €2.35 to €2.50) for adjusted basic earnings per share.

 Bernd Montag, CEO of Siemens Healthineers AG: 

”We continued our strong start to the fiscal year in the second quarter. While the fundamental growth drivers remain intact, we expect that the significantly increased volatility of the geopolitical environment will weigh on our business this year. That leads us to widen our guidance range for adjusted basic earnings per share for fiscal 2025, while keeping our revenue growth outlook unchanged.”

Siemens Healthineers AG reported robust Q2 FY2025 earnings, marking a continuation of its strong start to the fiscal year. The company recorded a 6.8% comparable revenue growth and achieved an adjusted EBIT margin of 16.6%—an improvement from the prior year. The Imaging and Varian segments were the primary growth drivers, while Diagnostics and Advanced Therapies posted steady improvements.

However, amid the strong financial performance, Siemens Healthineers widened its earnings per share (EPS) guidance due to rising geopolitical tensions and global tariffs. This move reflects not only fiscal prudence but also the underlying challenges faced by multinational healthcare manufacturers navigating a volatile global trade landscape.

Key Financial Highlights

• Revenue: €5.91 billion (8.7% actual growth; 6.8% comparable)

• Adjusted EBIT: €982 million (up 19%)

• Adjusted EBIT Margin: 16.6% (up from 15.1% YoY)

• Net Income: €537 million (up 25%)

• Free Cash Flow: €197 million (up 64%)

• Adjusted EPS: €0.56 (up 3%)

Despite global macroeconomic headwinds, Siemens Healthineers’ fiscal discipline, diversified segment performance, and regional resilience underpinned its solid quarter.

Segment-Level Analysis

1. Imaging: Star Performer With Highest Margin

• Revenue: €3.28 billion (up 8.7% comparable)

• EBIT Margin: 22.4%

The Imaging segment remains the bedrock of Siemens Healthineers' profitability. Strong performances in Molecular Imaging and CT systems led the surge, especially in the Americas. However, China and EMEA saw slight declines due to delayed orders and high prior-year baselines. The Imaging division continues to demonstrate pricing power and operational leverage, sustaining its leadership position in advanced diagnostic modalities.

2. Varian: High Revenue Growth, Margin Pressure

• Revenue: €1.04 billion (up 12.5% comparable)

• EBIT Margin: 13.2% (down from 16.4%)

Varian's revenue rebound is a testament to growing global demand for cancer therapy systems. Gains in Asia-Pacific and the Americas were notable, especially as China rebounded from prior-year declines. However, margins were squeezed due to an unusually high share of equipment sales and unfavorable currency effects.

3. Diagnostics: Marginal Growth, Margin Recovery

• Revenue: €1.12 billion (up 1% comparable)

• EBIT Margin: 6.3% (up from 4.1%)

While topline growth was modest, margin improvement signals the positive impact of ongoing restructuring efforts. Asia and China drove revenue growth, while Americas declined slightly. The transformation program in Diagnostics is showing early signs of progress, and the path to sustainable profitability appears clearer.

4. Advanced Therapies: Solid Growth Amid Tough Comps

• Revenue: €553 million (up 3.7% comparable)

• EBIT Margin: 18.5%

Despite facing a tough comparison from the prior year, Advanced Therapies posted healthy growth and maintained strong margins. The Asia-Pacific and Americas regions outperformed, while EMEA declined moderately. This segment continues to benefit from increased demand for minimally invasive and image-guided therapies.

Regional Dynamics

The Americas continues to drive revenue growth for Siemens Healthineers, particularly in the U.S., where healthcare investment remains high. Asia-Pacific, bolstered by recovering demand in China and India, also performed well. In contrast, EMEA slightly contracted due to a strong prior-year quarter and localized economic pressures.

Strategic Implications: Transformation, Tariffs & Transparency

1. Geopolitical Tariffs and Trade Volatility

The company widened its adjusted EPS outlook from €2.35–€2.50 to €2.20–€2.50. The adjustment reflects caution amid escalating tariffs and trade frictions, particularly in cross-border equipment flows and raw materials. These macroeconomic challenges may dampen profit margins, particularly in the Diagnostics and Varian segments, in the second half of FY2025.

2. Diagnostics Transformation Takes Root

The Diagnostics segment’s margin uplift (+220 basis points YoY) suggests that Siemens Healthineers’ ongoing restructuring efforts are bearing fruit. The company has significantly cut severance and restructuring costs (down €88 million YoY), which not only improves operational efficiency but also supports long-term profitability.

3. Cash Flow and Capital Allocation

Free cash flow surged by 64% YoY to €197 million. While this reflects stronger operating results and working capital management, it is also critical as Siemens Healthineers continues to invest in business transformation, digital infrastructure, and growth in Asia.

Capital Structure and Liquidity

• Cash & Equivalents: €2.4 billion

• Net Financial Debt: Stable with €286 million in short-term and €506 million in long-term debt

• Dividends: €1.066 billion paid in Q2

A notable aspect of the quarter was the large dividend outflow. This, combined with capital investments and a cautious outlook, suggests Siemens Healthineers is walking a fine line between shareholder returns and fiscal prudence.

ESG and Regional Resilience

Siemens Healthineers continues to emphasize sustainability, digital access, and healthcare equity—particularly in underserved geographies. Its performance in emerging Asia reflects a dual strategy: supporting government-led health infrastructure expansion while developing scalable solutions like mobile diagnostics and cloud-enabled imaging platforms.

Market and Investor Perspective

From an investor's lens, Q2 FY2025 reinforces Siemens Healthineers' position as a global healthcare bellwether. The consistent performance across geographies and segments, despite macroeconomic headwinds, underlines a strong operating model.

Yet, the tempered EPS guidance and currency-related margin pressures highlight the fragility of global medical device supply chains amid rising protectionism and regulatory fragmentation.

Navigating Growth With Caution

Siemens Healthineers is delivering growth through operational resilience, diversified revenue streams, and strategic transformation, particularly in Diagnostics and digitalization. While trade uncertainties loom large, the company’s continued investments in innovation and regional scale position it to withstand geopolitical disruptions and emerge stronger.

Going forward, stakeholders should closely monitor:

• Execution of the Diagnostics transformation roadmap

• Margin trends in Varian amid pricing pressure

• Regional demand fluctuations, especially in China and EMEA

• FX and tariff-related cost headwinds in H2 FY2025

Bottom Line: Siemens Healthineers remains a structurally sound and strategically agile healthcare leader. Its Q2 results reflect both performance strength and external caution—a duality that defines today’s global healthcare landscape.