AI investment drives a surge in demand for electrification products. Siemens' (SIEGY.US) Q1 revenue increased by 3% year-on-year.

Thanks to the strong demand for market electrification products that offset the continued decline in sales of factory automation equipment, Siemens (SIEGY.US) achieved revenue growth in the first quarter of its 2025 fiscal year. Data shows that Siemens' Q1 revenue increased by 3% year-on-year to 18.4 billion euros; the total order amount was 20.1 billion euros, a decrease of 7% year-on-year. Net profit was 3.9 billion euros, an increase of 52%, benefiting from the 2.1 billion euros of after-tax income from the sale of the motor business Innomotics. With the market's significant investment in artificial intelligence infrastructure, there has been a surge in demand for Siemens' electrification products, such as software and microgrid controllers for data centers. Siemens announced in December last year that this division is expected to achieve a profit margin of up to 20% in the next three to five years. This growth has helped Siemens offset weakness in other businesses, including mobile businesses for factory equipment, manufacturing trains, and railway infrastructure. To improve profitability, Siemens has been striving to shift towards software-driven product lines with higher profit margins in all its departments. The German manufacturer plans to acquire American Software, Inc. Class A manufacturer Altair Engineering for $10 billion, with the transaction expected to be completed in the second half of this year.