A Look at Siemens (XTRA:SIE) Valuation After Q4 Earnings Reveal Sales Growth and Lower Net Income

Siemens (XTRA:SIE) has just posted its results for the fourth quarter and full year ending September 2025, showing year-over-year sales growth alongside a drop in quarterly net income. Investors are now weighing these figures to gauge where the company is headed.

See our latest analysis for Siemens.

Siemens has attracted plenty of attention this year with major international collaborations, including its strategic partnership with Shanghai Electric to push digitalization and decarbonization in power grids. Despite recent volatility, including last week's 11.8% slide in the share price after earnings, longer-term momentum has been strong, with a 1-year total shareholder return of 25.5% and an impressive 3-year total return of nearly 81%.

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With the stock currently trading about 16% below analyst price targets and fundamentals showing both growth and challenges, the big question is whether Siemens is undervalued or if the market has already factored in the next phase of growth.

Most Popular Narrative: 13.4% Undervalued

Siemens' most popular analyst narrative sees fair value notably above the last close, suggesting the stock is still trading at a considerable discount. With this gap in mind, investors are watching the financial projections fueling this thesis.

Sustained, accelerating demand for electrification and data center infrastructure, especially from hyperscaler clients, is driving strong top-line growth in the Smart Infrastructure segment. This supports recurring revenues and capacity-based margin expansion over multiple quarters.

Read the complete narrative.

Want to see the strategy behind Siemens' value surge? One forecast assumption in this narrative points to ambitious improvements in profitability and recurring revenues, which is far from the consensus view. Dive in for more on the revenue and margin leap built into this fair value estimate.

Result: Fair Value of €252.03 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing macroeconomic uncertainties and weak demand in automation could quickly undermine Siemens' growth story and put more pressure on profitability than analysts expect.

Find out about the key risks to this Siemens narrative.

Build Your Own Siemens Narrative

If you see Siemens' story differently or want to form your own forecast, the tools are here for you to build a complete perspective in minutes, your way. Do it your way.

A great starting point for your Siemens research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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