By the numbers
Q3 revenue: 5.66 billion euros
4.4% increase year over year
Q3 net income: 556 million euros
18% increase year over year
Siemens Healthineers said Wednesday it has narrowed its 2025 revenue and earnings guidance ranges in response to a reduction in the forecast impact of tariffs.
In May, the company predicted a pretax tariff impact of up to 300 million euros this year and lowered the bottom end of its earnings range. The forecast assumed the U.S. applied a 20% tariff on European goods in July. Tariffs on goods shipped from Europe, where Siemens Healthineers is based, to the U.S. accounted for more than half of the anticipated impact.
The situation has changed since the company made the forecast in May. On July 27, President Donald Trump and European Commission President Ursula von der Leyen agreed a deal that will cap U.S. tariffs on most EU goods at 15%. The rate is higher than the 10% imposed during the pause for trade talks but lower than the 30% levy that Trump threatened in July. The new tariff ceiling is set to take effect on Aug. 1.
Siemens Healthineers used its earnings to provide an update on the effect of tariffs, predicting a full-year impact of 200 million to 250 million euros. The company took a 100 million euros hit in the third quarter, suggesting a potentially bigger impact in the fourth quarter.
Siemens Healthineers CFO Jochen Schmitz said on the third-quarter earnings call that a full-year impact of 400 million to 500 million euros is now “the most realistic case” for 2026. Management expects the impact of tariffs to decline in 2027.
Schmitz said it is too early to make “structural decisions on midterm mitigations” because not all details of the trade deal between the U.S. and EU are clear. Siemens Healthineers has “all the means to mitigate impacts from tariffs,” Schmitz said, but the “measures need to be deemed as economically meaningful to safeguard our earnings growth.”
Tariffs trigger guidance changes
The company blamed low conversion, tariff impacts and a headwind from foreign exchange on a drop in the profit margin at its advanced therapies business in the third quarter. Schmitz said that the advanced therapies unit is more exposed to tariffs than other businesses because it is smaller and “has only little value add in the United States.”
Siemens Healthineers cited trade tariff agreements and other geopolitical developments as drivers of its decision to narrow its full-year guidance range. Siemens Healthineers now expects comparable revenue growth of 5.5% to 6% over its 2025 financial year, compared with 5% and 6% previously.
The company’s updated earnings per share range is 2.30 euros to 2.45 euros, compared to 2.20 euros to 2.50 euros previously. The update goes some way to reversing the change Siemens Healthineers made in May, when tariffs prompted the company to lower the bottom end of its EPS range from 2.35 euros to 2.20 euros.
Siemens Healthineers cited tariffs as the driver of its decision to narrow its ranges but attributed the call to raise the midpoints of the forecasts to its performance over the first three quarters of the fiscal year. Sales rose 7.6% on a comparable basis to approach 5.7 billion euros. Siemens Healthineers shared the consensus estimate of 12 analysts, showing its revenues beat expectations by almost 60 million euros.
Abbott, Boston Scientific, Intuitive Surgical, Johnson & Johnson and Philips have all lowered forecasts for the impact of tariffs in recent weeks, reflecting progress on trade deals since they made their previous predictions.
