Siemens raises outlook as AI data-centre orders grow

Siemens raised its annual profit outlook for the second time this year after orders grew in businesses linked to artificial intelligence and data centres.

The German industrial group said it now expects earnings per share of between 11.20 and 11.50 euros, or $12.93 to $13.28, for the year. Its previous guidance in February was 10.70 to 11.10 euros.

Net profit for the three months to the end of June rose 15 percent to 2.6 billion euros. Sales rose eight percent to 20.8 billion euros.

Order intake, an indicator of future sales, rose 14 percent from a year earlier to a record 27.9 billion euros, leaving Siemens with a backlog of 132 billion euros. Orders jumped 42 percent at the Smart Infrastructure division, which makes electrical equipment used by data centres and industrial customers.

Chief executive Roland Busch said the company's focus on industrial AI and its position in attractive markets were driving profitable growth.

Siemens also reported growth at its Digital Industries division, which focuses on software to automate industrial processes. The company makes trains, industrial software, electrical equipment and medical and industrial machinery.