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Investing.com -- Siemens (ETR:SIEGn) Healthineers (ETR:SHLG) on Wednesday posted a 6.8% jump in second-quarter revenue and a 25% rise in net income, but widened its full-year earnings outlook due to mounting pressure from global tariffs.
The German company reported revenue of about €5.9 billion for the quarter ended March 31, led by strength in the Imaging and Varian segments.
Adjusted EBIT rose 19% to €982 million, with a margin of 16.6%. Net income climbed to €537 million, while adjusted basic earnings per share edged up to €0.56 from €0.55.
Free cash flow reached nearly €200 million. The equipment book-to-bill ratio was 1.14, reflecting robust order intake.
“While the fundamental growth drivers remain intact, we expect that the significantly increased volatility of the geopolitical environment will weigh on our business this year,” chief executive Bernd Montag said in a statement.
The company maintained its full-year revenue growth forecast of 5% to 6% but widened its adjusted earnings per share range to €2.20 to €2.50, down from €2.35 to €2.50, citing trade-related headwinds.
Imaging revenue increased 8.7% to nearly €3.3 billion, with strong performance in Molecular Imaging and Computed Tomography.
Growth in the Americas offset slight declines in China and EMEA. The segment posted an EBIT margin of 22.4%.
Varian revenue rose 12.5% to about €1 billion, rebounding across all regions. Its EBIT margin fell slightly to 13.2%, due to high equipment share and currency effects.
Diagnostics rose 1% to €1.1 billion, with margin improvement to 6.3% driven by cost savings. Advanced Therapies grew 3.7% to €553 million, with an EBIT margin of 18.5%.
Restructuring and severance costs declined compared to the prior year, reflecting progress in business transformation.
Net financial income fell to -€111 million, and the tax rate rose to 27%, slightly affecting earnings per share.