Siemens Healthineers Explores Strategic Options for Diagnostics Unit

The shift follows Siemens AG’s recent announcement of plans to reduce its stake by about 30%, valued at roughly €15 billion, through a direct spinoff to Siemens shareholders.

Siemens Healthineers AG is reportedly assessing future options for its Diagnostics division, which may include a potential sale, days after former parent Siemens AG announced plans to reduce its majority holding in the medical technology company.

The Diagnostics unit, known for manufacturing lab-testing machines for blood samples, is being developed with several possible future scenarios, Chief Executive Officer Bernd Montag said.

Montag noted that Healthineers may no longer be the best owner of the division given the changes underway. The company also projected roughly flat group revenue growth for fiscal years beginning in 2027.

Shares of Siemens Healthineers fell as much as 2.5% in Frankfurt and are down around 16% this year. The company has held exploratory discussions with private equity firms regarding a potential sale, Bloomberg reported in September. According to sources at the time, the business could be valued at more than €6 billion in a transaction.

The shift follows Siemens AG’s recent announcement of plans to reduce its stake by about 30%, valued at roughly €15 billion, through a direct spinoff to Siemens shareholders. Montag said earlier this month that Siemens’ pullback could make the medical technology provider “attractive for new investors that are interested in big tickets.”

Healthineers also set detailed mid-term financial targets, signaling lower growth expectations for the Diagnostics division compared to other parts of the company.

From fiscal 2027 onward, Diagnostics is expected to deliver mid-single-digit comparable revenue growth, while the Imaging and Precision Therapy units together could grow as much as 9%.

For the group as a whole, revenue between 2027 and 2030 is projected to grow by 5% to 7% annually, with double-digit growth expected for adjusted earnings per share. That compares with as much as 6% revenue growth targeted for the current fiscal year and 5.9% in the previous year.

The company expects continued strength in markets such as the US for MRI and CT scanners, cancer therapy equipment and lab-testing devices. However, tariff expenses are forecast to double this fiscal year, joining peers Ambu A/S and Royal Philips NV in warning that duties will weigh on earnings.

Chief Financial Officer Jochen Schmitz said that by fiscal 2028, the company aims to mitigate tariff pressures through cost reductions and moderate price increases. A 1% price rise generates around €200 million in additional revenue in the Imaging and Precision Therapy units, he said.

Schmitz added that the Diagnostics unit, which produces devices used to test blood and tissue samples to identify diseases, is now in a position to pursue a more independent strategy. However, he clarified that the company is not currently in discussions with investors regarding a sale.

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