Q3 Preview: Headwinds in Diagnostics and Inflation to Hurt Margins

Research evidence excerpt

Q3 Preview: Headwinds in Diagnostics and Inflation to Hurt Margins

Deutsche Bank

Research

Rating Company Date

Hold Siemens 6 July 2026

Results

Europe Healthineers

Germany

Reuters Bloomberg Exchange Ticker Price at 3 Jul 2026 (EUR) 34.97

SHLG.DE SHL GR GER SHLG

Price Target (EUR) 38.00

Healthcare

52-week range (EUR) 49.53 - 33.40

Medical Technologies &

Services

Q3 Preview: Headwinds in Diagnostics

Valuation & Risks and Inflation to Hurt Margins

Falko Friedrichs

Q3 Results Are Set to Be Reported on July 31 Research Analyst

For the upcoming quarter, we forecast 5% organic sales growth, driven by 5% in +49-69-910-36270

Imaging and 9% in Precision Therapy, partially offset by a 3% decline in Diagnostics.

Jan Koch, CFA

We also project a 6% decline in adjusted EBIT (implying a 15.4% margin, -140bps Research Analyst

year-over-year) and a 16% decline in adjusted EPS. The main reasons for the +49-69-910-47428

expected earnings decline are inflationary cost headwinds from the Middle Eastern

Fynn Scherzler

conflict and significant profit erosion in the Diagnostics business due to a tough

Research Analyst

market environment in China. We believe the full-year guidance, which was

+49-69-910-40764

reduced with the Q2 results, will be confirmed, although this will require a margin

improvement in Q4. The current guidance projects 4.5-5.0% organic sales growth Sachin Gadilingappa

and adjusted EPS of €2.20-2.30 (implying a 6% year-over-year decline at the Research Associate

midpoint; consensus: €2.22).

Price/price relative

Figure 1: Q3'26 Preview table

(Euro million) 3Q25 3Q26E yoy 9M25 9M26E yoy

Total revenue 5,662 5,811 2.6% 17,053 16,894 -0.9% 50

yoy (organic) 7.6% 4.6% 6.7% 3.8%

Imaging 2,966 3,055 3.0% 8,744 8,824 0.9% 2024 2025 2026

yoy (organic) 11.8% 5.0% 8.9% 5.6%