Siemens Healthineers cuts revenue forecast on diagnostics weakness

Diagnostics revenue fell 5.5% in the company's fiscal third quarter, and Chief Financial Officer Jochen Schmitz said it would likely decline by a mid-single-digit percentage also in the fourth.

China's volume-based procurement programme and lower reimbursement rates have depressed prices and sales volumes in the country's diagnostics market, pressuring the company's results.

The migration of customers to an updated laboratory testing platform is also causing temporary losses, as old platforms are withdrawn from the market, a company spokesperson said.

The company reported quarterly revenue growth of 1.8% to €5.76 billion ($6.63 billion), which narrowly missed an LSEG consensus estimate. However, its adjusted operating profit margin increased to 19.1% from 16.8% a year ago.

Asked about the separation of Siemens Healthineers from Siemens AG SIEGn.DE, Schmitz estimated that the split would carry a cost of around €50 million, not including brand fees.

He also said the planned carve-out of the diagnostics segment would take two years.

($1 = 0.8692 euros)

Siemens Healthineers also raised the outlook for its adjusted earnings per share to between €2.35 and €2.45, from €2.20 to €2.40 previously, reflecting the one-off amount expected from U.S. tariff refunds after the Supreme Court struck down some of the levies in February.

It still needs to apply for additional refunds, which will most likely not be received before 2027, Schmitz told reporters.