Siemens Healthineers (ETR:SHL) outlined several factors expected to affect its fiscal third-quarter 2026 results in a pre-close investor relations update recorded June 22, emphasizing that the company had no indications of actual results ahead of the June 30 quarter-end.
The company said the update was intended to align investors ahead of its silent period, which begins July 3. The remarks focused on previously communicated topics that may be relevant for the upcoming quarter, including foreign exchange, tariffs, supply chain inflation and expected segment trends.
Foreign Exchange Headwinds Expected to Ease on Revenue
The company cited its CFO as saying, “We see the year-over-year translational headwind easing in Q3 compared to Q2, as we will be going against an already weaker US dollar from prior year.”
According to the update, the company still expects the U.S. dollar to be weaker year over year in the third quarter. Assuming the dollar is 3% to 4% weaker on average and using a simplified assumption of 50% U.S. dollar exposure, Siemens Healthineers said this would imply a translational headwind of roughly 1 to 2 percentage points on nominal revenue.
EPS Pressures From FX, Tariffs and Inflation Remain in Focus
On earnings, Siemens Healthineers said its major fiscal 2026 headwinds remain foreign exchange, tariffs and additional inflation in the supply chain. The company said it has not changed its full-year assumptions for FX or tariff impacts.
For foreign exchange, Siemens Healthineers continues to assume an incremental EPS headwind of about EUR 0.15 compared with fiscal 2025. The majority of that impact is expected in Imaging and Advanced Therapies EBIT within the Precision Therapy segment. About EUR 0.11 of the EUR 0.15 had already materialized in the first half of the fiscal year.
The company cited prior CFO commentary from the last earnings call, stating, “In the segments, we expect similar foreign exchange headwinds on margins as in Q2. On the margin, the year-over-year headwind as in Q2 persists because the hedging is rolling off.”
For tariffs, Siemens Healthineers also continues to assume an incremental EPS headwind of about EUR 0.15 compared with fiscal 2025, with most of the impact also affecting Imaging and Advanced Therapies within Precision Therapy. The company said EUR 0.12 of that amount had materialized in the first half. Because tariff costs are now included in the comparable prior-year quarter, Siemens Healthineers said the year-over-year impact in Q3 is expected to be not material, citing CFO commentary that “On tariffs, we do not expect a material impact year-over-year.”
Supply Chain Inflation to Begin Weighing on Q3 Earnings
Siemens Healthineers said additional inflation in the supply chain is expected to create an incremental EPS headwind of about EUR 0.05 in the second half of fiscal 2026 compared with the second half of fiscal 2025.
The company said that while year-over-year tariff pressure is fading in Q3, the first year-over-year headwinds from additional supply chain inflation are expected to affect third-quarter earnings. Siemens Healthineers said the EUR 0.05 EPS impact is equivalent to a mid- to high-double-digit million euro EBIT headwind in the second half, and that in the absence of additional detail, it would be fair to distribute the EBIT impact equally between Q3 and Q4.
The company also said it has indicated in recent investor discussions that additional supply chain inflation is expected to remain an incremental headwind in fiscal 2027.
Segment Expectations: Imaging, Precision Therapy and Diagnostics
For the third quarter, Siemens Healthineers said it expects Imaging to grow at a mid-single-digit rate, in line with its full-year assumption. The company clarified that its understanding of mid-single-digit growth is 6%, while noting that the comparison comes against a tough prior-year quarter in which Imaging grew 12%.
In absolute terms, Siemens Healthineers said it expects a normal revenue quarter for Imaging, with revenue sequentially above Q2 but growth likely sequentially below Q2. The company also said Imaging’s year-over-year margin development will be challenging because the prior-year quarter had a very favorable business mix, in addition to FX and supply chain inflation headwinds.
For Precision Therapy, Siemens Healthineers said it expects growth to accelerate in Q3, particularly in Advanced Therapies. It also expects a year-over-year margin decline in both Imaging and Precision Therapy due to foreign exchange and additional cost inflation.
For Diagnostics, Siemens Healthineers said it expects another year-over-year revenue decline in Q3, though less severe than the 5% decline recorded in the first half. The company expects a year-over-year Diagnostics margin decline similar to Q2, at about five percentage points, against a prior-year Q3 margin of more than 9%. Sequentially, Diagnostics margins are expected to improve due to recovering top-line performance in absolute terms and further cost reductions from the transformation program.
Below-the-Line Assumptions Reiterated
Siemens Healthineers also reiterated assumptions for below-the-line items. For fiscal 2026, the company said its current assumption for central items remains between negative EUR 250 million and negative EUR 200 million in EBIT. For financial income net, the assumption remains around negative EUR 340 million.
The company said a quarterized pro rata midpoint approach is appropriate for central items. For financial income net, it said a pro rata approach to the EUR 185 million remainder for the second half is the best approach, with H2 expected to be slightly higher than H1 partly due to refinancing of a loan in March. Siemens Healthineers said the midpoint of its 24% to 26% tax rate assumption remains the best approach.
About Siemens Healthineers (ETR:SHL)
Siemens Healthineers AG, through its subsidiaries, develops, manufactures, and sells a range of diagnostic and therapeutic products and services to healthcare providers worldwide. It 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. Its Diagnostics segment offers in-vitro diagnostic products and services to healthcare providers in laboratory and point-of-care diagnostics; and workflow solutions for laboratories and informatics products.
