Siemens Healthineers AG (SHL.DE) | Investment Case

1. Company Snapshot

1.a. Company Description

Siemens Healthineers AG, through its subsidiaries, develops, manufactures, and sells a range of diagnostic and therapeutic products and services to healthcare providers worldwide.The company operates through four segments: Imaging, Diagnostics, Varian, and Advanced Therapies.The Imaging segment provides magnetic resonance imaging, computed tomography, X-ray systems, molecular imaging, and ultrasound systems.

The Diagnostics segment offers in-vitro diagnostic products and services to healthcare providers in laboratory, molecular and point-of-care diagnostics; and workflow solutions for laboratories and informatics products.The Varian segment provides cancer care technologies, and solutions and services to oncology departments in hospitals and clinics; and technology-enabled optimized workflows, clinical services and consulting capabilities, and digital solutions and applications for managing treatment and therapy.The Advanced Therapies segment offers products that are designed to support image-guided minimally invasive treatments in various areas, such as cardiology, interventional radiology, and surgery; and angiography systems and mobile C-arms, including a robotic-assisted platform for endovascular coronary and peripheral vascular interventions.

It also provides equipment performance management, clinical education and e-learning, asset management, and managed departmental services for laboratories and healthcare facilities, as well as consulting and digital health services.The company is headquartered in Erlangen, Germany.Siemens Healthineers AG operates as a subsidiary of Siemens Aktiengesellschaft.

Show Full description

1.b. Last Insights on SHL

Negative drivers behind Siemens Healthineers' recent performance include material headwinds in diagnostics tied to market changes in China, as flagged by executives during the Q1 earnings call. Additionally, the company faces challenges from currency and tariff headwinds, which have impacted revenue growth. Furthermore, the recent partnership with World Athletics to provide on-site diagnostic technologies for endurance events may not be enough to offset the decline in diagnostics business.

1.c. Company Highlights

Last Price	42.35
Change Percentage	2.17%
Open	41.6
Previous Close	41.45
Market Cap ( Millions)	47297
Volume	1502259
Year High	55.94
Year Low	39.91
M A 50	43.71
M A 200	45.72

FCF Yield	3.82%
Dividend Yield	2.36%
ROE	11.65%
Debt / Equity	82.28%
Net Debt / EBIDTA	286.03%
Price To Book	2.57
Price Earnings Ratio	22.31
Price To FCF	26.2
Price To sales	2.03
EV / EBITDA	13.25

2. Siemens Healthineers' Q1 FY2026 Earnings: A Strong Start Despite Headwinds

Siemens Healthineers reported a robust financial performance in Q1 FY2026, with revenues growing 5.7% in Imaging and 5.9% in Precision Therapy. The Diagnostics segment, however, faced challenges in China, resulting in a 3% revenue decline. Adjusted EPS was down 3% year-over-year, but excluding headwinds from tariffs and foreign exchange, EPS grew around 17% to €0.4877, beating estimates of €0.4437. The company's operational margin expansion in Imaging and Precision Therapy helped offset the significant headwinds.

Publication Date: Feb -06

                                    📋 Highlights
                                    Imaging Growth & Margin Expansion::
                                                Imaging segment achieved 5.7% revenue growth driven by Photon Counting CT and PETNET (double-digit U.S. growth), with margins expanding despite tariffs and FX headwinds.
Diagnostics Challenges & Atellica Growth::
                                                Diagnostics revenue declined 3% due to China's volume-based procurement, but Atellica franchise grew 20% and now accounts for ~70% of core lab sales.
Varian's Strong Contribution::
                                                Varian delivered 9% growth in Precision Therapy, while Advanced Therapies faced a slower start, impacting overall segment performance.
EPS Resilience::
                                                Adjusted EPS fell 3% YoY, but excluding FX and tariffs, EPS growth reached ~17%, confirming 2026 outlook despite headwinds.
Long-Term Diagnostics Margin Target::
                                                CFO reaffirmed mid-teens margin potential for Diagnostics despite China's structural challenges, with recovery expected in H2 2026.

                                

Segment Performance

The Imaging segment drove growth, with Photon Counting CT and Radiopharmaceuticals business contributing to the 5.7% revenue growth. Precision Therapy also started the fiscal year strongly, with Varian contributing 9% growth. Diagnostics, however, continued to face market challenges in China, resulting in a revenue decline. The Atellica franchise grew 20% in Q1, now accounting for almost 70% of sales in the core lab solution business.

Outlook and Guidance

The company confirmed its outlook for FY2026, expecting revenue growth and adjusted EPS to be in line with previous guidance. However, it expects revenue growth in Q2 to be below the outlook range of 5% to 6%, with Diagnostics continuing to face market challenges in China. The company remains optimistic about the midterm outlook for Diagnostics, expecting to reach mid-teens margin despite the current challenges.

Valuation

With a P/E Ratio of 21.38, P/B Ratio of 2.54, and EV/EBITDA of 12.86, Siemens Healthineers' valuation appears reasonable. The company's ROE of 11.56% and ROIC of 7.37% indicate a strong return on equity and invested capital. Analysts estimate revenue growth at 6.2% for next year, which is slightly above the current year's expectations. The Dividend Yield of 2.31% and Free Cash Flow Yield of 4.92% provide a relatively attractive return for investors.

Key Drivers

The company's focus on fighting noncommunicable diseases and its unique clinical relevance were showcased at RSNA with new launches, including the AI-driven Syngo.CT Coronary Cockpit tool. The integration of AI to improve system performance is gaining significance, differentiating products in the field of Angiography and Tomography (AT). As Jochen Schmitz mentioned, "Photon Counting CT is helping on margin expansion," highlighting the importance of innovation in driving growth and profitability.

3. NewsRoom

Siemens Healthineers Q1: Imaging, Precision Therapy drive growth as China weighs on Diagnostics

Feb -20

Source:

Telemedicine & Digital Health Research Report 2026: A $180 Billion Market by 2031 from $85.5 Billion in 2025 with Teladoc Health, Amwell, Philips, Siemens Healthineers, GE, Medtronic, Oracle Leading

Feb -17

Source:

Siemens Aktiengesellschaft AGM: Record FY2025, Raised Outlook, AI Push and Healthineers Spin-Off Plan

Feb -12

Source:

Has Siemens Healthineers (XTRA:SHL) Fallen Too Far After Recent Share Price Weakness?

Feb -11

Source:

AI in Oncology Research and Long-term Forecasts Report 2026-2040: Siemens Healthineers and GE Healthcare Lead, While NVIDIA, IBM, Tempus, PathAI, and Emerging Specialists Expand Use Cases

Feb -10

Source:

Siemens Healthineers AG (SMMNY) Q1 2026 Earnings Call Highlights: Strong Imaging and Precision ...

Feb -07

Source:

Preclinical Imaging Market to Reach US$ 3,332.2 Million by 2033 Driven by Rising Cell & Gene Therapy R&D, High-Throughput In-Vivo Imaging, and AI-Enabled Multimodal Platforms | Astute Analytica

Feb -06

Source:

Health Care Roundup: Market Talk

Feb -05

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.20%)

6. Segments

Imaging

Expected Growth: 7.0%

The Imaging segment is expected to grow at a rate higher than the global average due to the continuous advancements in imaging technologies and the increasing demand for diagnostic procedures. The aging population and the rising incidence of chronic diseases further contribute to this growth.

Diagnostics

Expected Growth: 6.0%

The Diagnostics segment is anticipated to grow at a rate slightly below the global average. While there is a steady demand for diagnostic services, the growth is somewhat tempered by the maturity of certain diagnostic technologies and the competitive landscape.

Varian

Expected Growth: 8.0%

The Varian segment is expected to experience significant growth due to the increasing prevalence of cancer and the need for advanced radiation therapy solutions. The integration of Varian's technologies with Siemens Healthineers' existing portfolio is also expected to drive growth.

Advanced Therapies

Expected Growth: 5.0%

The Advanced Therapies segment is expected to grow, albeit at a slightly lower rate than the global average. While there is a strong demand for minimally invasive treatments, the segment faces challenges related to the complexity of these therapies and the need for specialized training for healthcare professionals.

Reconciliation to Consolidated Financial Statements

Expected Growth: None%

None

7. Detailed Products

Magnetic Resonance Imaging (MRI) Systems

Siemens Healthineers' MRI systems provide high-quality images for accurate diagnosis and treatment of various medical conditions.

Computed Tomography (CT) Scanners

Siemens Healthineers' CT scanners offer high-speed, low-dose imaging for precise diagnosis and treatment planning.

X-ray Systems

Siemens Healthineers' X-ray systems provide high-quality digital imaging for accurate diagnosis and treatment of various medical conditions.

Ultrasound Systems

Siemens Healthineers' ultrasound systems offer high-resolution imaging for accurate diagnosis and treatment of various medical conditions.

Molecular Imaging

Siemens Healthineers' molecular imaging solutions provide precise visualization of biological processes for accurate diagnosis and treatment.

Laboratory Diagnostics

Siemens Healthineers' laboratory diagnostics solutions provide accurate and efficient testing for various medical conditions.

Point of Care Testing

Siemens Healthineers' point of care testing solutions provide rapid and accurate testing at the bedside or in the clinic.

Enterprise Imaging

Siemens Healthineers' enterprise imaging solutions provide a unified platform for image management and analysis.

Artificial Intelligence (AI) and Analytics

Siemens Healthineers' AI and analytics solutions provide insights and automation for improved clinical decision-making and operational efficiency.

Digital Health

Siemens Healthineers' digital health solutions provide a range of digital tools and services for healthcare providers and patients.

8. Siemens Healthineers AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Siemens Healthineers AG is low due to the company's strong brand recognition and customer loyalty in the healthcare industry.

Bargaining Power Of Customers

The bargaining power of customers for Siemens Healthineers AG is medium due to the presence of large hospital chains and healthcare providers, but the company's diversified product portfolio and strong relationships with customers mitigate this power.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Siemens Healthineers AG is low due to the company's large scale and diversified supply chain, which reduces dependence on individual suppliers.

Threat Of New Entrants

The threat of new entrants for Siemens Healthineers AG is low due to the high barriers to entry in the healthcare industry, including regulatory hurdles and the need for significant investments in research and development.

Intensity Of Rivalry

The intensity of rivalry for Siemens Healthineers AG is high due to the presence of established competitors such as GE Healthcare and Philips Healthcare, and the need for continuous innovation and investment in research and development to stay competitive.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	3.38%
Debt Cost	7.60%
Equity Weight	96.62%
Equity Cost	7.60%
WACC	7.60%
Leverage	3.50%

11. Quality Control: Siemens Healthineers AG passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Drägerwerk

A-Score: 6.0/10

Value: 8.5

Growth: 3.3

Quality: 5.4

Yield: 3.8

Momentum: 9.5

Volatility: 5.3

1-Year Total Return ->

AstraZeneca

A-Score: 5.9/10

Value: 1.3

Growth: 7.6

Quality: 6.8

Yield: 3.1

Momentum: 9.0

Volatility: 7.3

1-Year Total Return ->

STERIS

A-Score: 5.3/10

Value: 1.9

Growth: 6.6

Quality: 7.1

Yield: 1.2

Momentum: 6.5

Volatility: 8.3

1-Year Total Return ->

Stryker

A-Score: 5.3/10

Value: 1.4

Growth: 6.4

Quality: 6.6

Yield: 2.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

Siemens Healthineers

A-Score: 4.4/10

Value: 3.3

Growth: 4.9

Quality: 5.3

Yield: 3.1

Momentum: 2.0

Volatility: 7.7

1-Year Total Return ->

Philips

A-Score: 3.8/10

Value: 2.4

Growth: 1.7

Quality: 2.9

Yield: 6.9

Momentum: 3.0

Volatility: 5.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

6.70%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.60%

Siemens Healthineers AG - DE000SHL1006

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SHL

1.c. Company Highlights

Less Volatile

Expensive

Average Yield

Earnings Beats

Revenues Miss

Fairly Valued

Revenues Beats

Stable Momentum

Average Quality

Higher Yield

Earnings Miss

Average Growth

2. Siemens Healthineers' Q1 FY2026 Earnings: A Strong Start Despite Headwinds

Segment Performance

Outlook and Guidance

Valuation

Key Drivers

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.20%)

6. Segments

Imaging

Expected Growth: 7.0%

Diagnostics

Expected Growth: 6.0%

Varian

Expected Growth: 8.0%

Advanced Therapies

Expected Growth: 5.0%

Reconciliation to Consolidated Financial Statements

Expected Growth: None%

7. Detailed Products

Magnetic Resonance Imaging (MRI) Systems

Computed Tomography (CT) Scanners

X-ray Systems

Ultrasound Systems

Molecular Imaging

Laboratory Diagnostics

Point of Care Testing

Enterprise Imaging

Artificial Intelligence (AI) and Analytics

Digital Health

8. Siemens Healthineers AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Siemens Healthineers AG passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

42.35$

12.e Scoring ^Insights

12.f DCF ^BETA