Siemens Healthineers AG FY27 EPS reset clears the path to separation

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Siemens Healthineers AG

FY27 EPS reset clears the path to

separation

Reiterate Rating: BUY | PO: 48.00 EUR | Price: 36.86 EUR

Box ticked, FY27 EPS reset starts clearing the road ahead

03 August 2026

The FY27 EPS reset was the key issue going into the results, and management has now

provided the bridge investors were waiting for. Starting from a €2.25 baseline, excluding

US tariff refunds, Healthineers expects double-digit underlying growth, with inflation

fully offset by previously implemented tariff mitigation actions. Including a €0.10-0.15

headwind from other below-the-line items, the bridge points to FY27 EPS of c.€2.35,

around 4% below consensus of €2.44. Management also indicated that the potential

licensing fee headwind is unlikely to materialise, removing an additional source of

downside risk. The focus now moves to execution. The debate now shifts from the level

of the FY27 reset to Healthineers’ ability to deliver double-digit EPS growth, particularly

given Diagnostics weakness and continued uncertainty in China. In our view,

management sounded confident on both issues. Nearer term, the shift of Imaging

revenue into 4Q and expected strong traction in Precision Therapy, supported by new

launches, point to a robust finish to the year. We reduce our FY27E EPS by 2% to €2.36,

aligning it with the company’s framework. Following the earnings reset, a potential

update on the separation of Diagnostics could become the next major catalyst for the

shares. We reiterate our Buy rating, supported by an attractive product cycle, upcoming

portfolio transformation and a discounted valuation of c.15x P/E.

Equity

Key takeways from the conference call:

1) FY27 EPS: was the main focus during the call. €2.20-2.30 is baseline. Commitment

on DD underlying growth confirmed. Tariff mitigation actions to offset higher cost

inflation (chip, component, transport, €1ct in 3Q, €4cts in Q4). Other costs (higher tax

rate and interest charges + separation costs) to impact EPS by 10-15cts.

2) Imaging: Softer revenue than expected is mainly explained by tough comps as well as

some MRI revenue shift into 4Q due to production output issue, now resolved. 4Q is

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