Siemens Healthineers (ETR:SHL) outlined foreign exchange and tariff headwinds heading into its fiscal 2026 second quarter, while reiterating expectations for segment-level growth and margin pressures, in a recorded “pre-close catch-up” dated March 23, 2026. The company emphasized that the update was meant to recap publicly communicated topics ahead of the silent period, and that it had “no indications on our Q2 actuals” with the quarter ending March 31.
Foreign exchange expected to be a larger revenue headwind in Q2
The company said translational foreign exchange (FX) effects on reported revenue are expected to worsen in Q2 versus Q1. In Q1, Siemens Healthineers described a translational headwind of “around 5%.” For Q2, management noted that the U.S. dollar was “on average weaker than in Q1,” while in the prior-year Q2 “the dollar was the strongest during the last fiscal year.” Against that comparison, the company said “it would be fair to assume that the translational headwind in Q2 will be more than the 5% headwind in Q1.”
Tariff headwinds guided to rise year-over-year, concentrated in first half
On tariffs, Siemens Healthineers said it assumes a headwind of “EUR 400 million in group EBIT after mitigation” in fiscal 2026. That compares with “EUR 200 million in fiscal year 2025,” when the company said tariffs “only impacted the second half of fiscal year 2025.” Management characterized the increase as “incrementally another EUR 200 million headwind in fiscal 2026 or around EUR 0.15, mainly impacting H1.”
As with FX, management said the majority of tariff headwinds are expected to impact Imaging and Advanced Therapies EBIT (within Precision Therapy). It added that “EUR 0.06 of these EUR 0.15” had materialized in Q1.
Q2 segment outlook: growth aligned to full-year assumptions, margins below prior year
In the update, the company cited expectations it attributed to comments from its CFO on the Q1 earnings call, reiterating that Imaging and Precision Therapy growth in Q2 should be “around the assumptions for fiscal year 2026.” Siemens Healthineers said that implies Imaging growth in the “mid-single digits” and Precision Therapy growth in the “mid- to high-single-digit” range.
However, the company said it expects margin pressure across segments in Q2 versus the prior-year quarter “due to tariff and foreign exchange.” It also pointed to special items affecting comparisons:
- Imaging: Management said the Imaging margin in Q2 2025 “was the highest in the last fiscal year,” and included a “disclosed tailwind from a positive special item.”
- Precision Therapy: Management noted that Precision Therapy margin in Q1 included “a positive special item,” and said it would expect a margin decline year-over-year “due to tariffs and foreign exchange” and quarter-over-quarter “due to the special item in Q1.”
On the Precision Therapy growth range for Q2, management highlighted a difficult comparison, noting that Varian “had a strong revenue quarter in Q2 last year, both in absolute terms and in organic revenue growth.”
Diagnostics: continued China challenges and tougher comparison
For Diagnostics, Siemens Healthineers said it expects continued market challenges in China during Q2, resulting in a revenue decline for the segment again in the quarter. It added that Q2 also brings “tough comps in China,” noting that Diagnostics revenue in China “rose strongly in prior year’s Q2,” which it described as “the only quarter in China last year with growth in Diagnostics.”
As a result, management said it expects the Diagnostics revenue decline to be “even more pronounced in Q2 than in Q1.” On margins, Siemens Healthineers said it would expect sequential margin improvement from “normalizing mix,” but still forecast “a clear margin decline year-over-year” due to declining revenue, ongoing China challenges, and tariff headwinds.
Group revenue expected below 5%–6% outlook range; below-the-line items guided by midpoints
Putting the segment expectations together, Siemens Healthineers reiterated that group revenue growth in Q2 is expected to be “below our outlook range of 5%–6%.”
For items below operating profit, the company did not add further detail beyond prior commentary and suggested using a pro rata approach based on the midpoints of full-year assumptions for central items and financial income (net). It likewise reiterated using the midpoint of its tax rate assumption of 24%–26%.
Finally, addressing the conflict in the Middle East, the company said it does not expect a significant impact on revenue in the current quarter, citing stable service business and noting the most impacted countries—“Iran, Lebanon and Israel”—represent “only a small portion” of overall business. On supply chain and cost inflation risks, management said it has hedging, storage, and long-term supplier contracts to manage near-term cost increases, but cautioned that if the Middle East crisis and memory chip situation persist longer, cost inflation could become a factor. Under a scenario where the situation persisted throughout the remaining fiscal year, Siemens Healthineers said it would, “at this point and before mitigation,” see a potential EBIT headwind of “up to EUR mid- to high double-digit million” in fiscal 2026.
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.
