May 7 (Reuters) – Siemens Healthineers on Thursday cut its full year outlook to forecast revenue growth of between 4.5% and 5.0% for the 2026 financial year citing the structural change in the Chinese Diagnostics markets and more pronounced inflation assumptions during the quarter.
The Chinese market accounts for around 10 percent of the company’s total revenue with volume-based procurement and lower reimbursement rates affecting prices and sales volumes.
The German medical technology company also revised its outlook for earnings per share downwards to 2.20-2.30 euros.
The company had previously forecast annual revenue growth between 5% and 6% and earnings per share range of 2.20 to 2.40 euros for 2026.
Siemens Healthineers also reported a 3.8% decrease in adjusted earnings before interest and taxes for the second quarter to 5.681 billion euros, missing LSEG consensus expectations of 5.77 billion euros.
Revenue in the diagnostics segment declined by 6.5% to 985 million euros with Healthineers citing a continuation of structural market rebasing in China.
Volume-based procurement and lower reimbursement rates depressed prices and sales volumes in the Chinese lab market, the Erlangen-based company said.
In a press call Siemens Healthineers Chief Financial Officer Dr. Jochen Schmitz forecasted additional costs in supply chains at approximately 5 cents per share in profit this year, due in part to memory chips, raw materials and logistics costs.
(Reporting by Simon Ferdinand Eibach; Editing by Nivedita Bhattacharjee)
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