Siemens Healthineers Hits New Low as Spin-Off Timeline Firms Up and China Headwinds Deepen

Siemens Healthineers shares slumped to a fresh 52-week trough on Friday, touching €35.29, as the medical technology group prepares to unveil its second-quarter results on May 7. The stock’s relative strength index has plunged to around 25 — territory that typically signals a heavily oversold position — yet the selling pressure shows no sign of abating.

The company’s diagnostics division remains the most conspicuous weak spot. In the first quarter, the unit posted a 3% revenue decline and a razor-thin margin of just 2.1%. China’s volume-based procurement policy continues to squeeze both sales and profitability, while a strengthening euro and newly imposed US tariffs have together cost the group roughly €0.15 per share. Group revenue for the first quarter contracted 1.5% to €5.4 billion, and the second quarter is expected to show only flat turnover of around €5.9 billion.

Analysts are bracing for a 9.3% drop in earnings per share for the quarter, with consensus estimates pointing to €0.51 versus €0.56 a year earlier. The full-year picture looks considerably brighter: the market is forecasting EPS of €2.30 and revenue approaching €24 billion. But the near-term trajectory is what matters most to investors right now, and the signals are not encouraging. The company has indicated that second-quarter revenue growth will undershoot its own 5% to 6% guidance, and for the period from fiscal 2027 onward, it is flagging flat top-line expansion.

Against this operational backdrop, the strategic narrative is shifting. Siemens AG is accelerating plans to divest its majority stake in the medical technology subsidiary. Shareholders are expected to vote on the direct spin-off in February 2027, with Siemens investors receiving Healthineers shares directly into their custody accounts. The parent company reports that preparations are advancing significantly, and the separation would leave Siemens Healthineers operating as a fully independent entity on the capital markets.

Should investors sell immediately? Or is it worth buying Siemens Healthineers?

The diagnostics business itself is also under strategic review, with the company exploring options that could include a sale. That uncertainty compounds the existing headwinds, leaving the stock trading at a vast discount to analyst price targets. The consensus among analysts stands at €52.50 — a chasm of more than €17 from the current share price that underscores just how much skepticism is priced in.

Not all the news is grim. Varian TrueBeam recently secured FDA clearance for low-dose radiation therapy in osteoarthritis, and Siemens Healthineers jointly launched the first dental MRI system with Dentsply Sirona. These product milestones, however, have done little to shift the market’s focus away from the structural challenges.

Deutsche Bank trimmed its price target by €4 in March, and Morgan Stanley followed with a further €3 reduction in April. RBC remains an outlier, maintaining an “Outperform” rating with a €55 target, but the broader analyst community is clearly marking down expectations. The upcoming earnings release on May 7 will be pivotal: investors will be watching closely for any signs of margin stabilization in the Imaging segment and, critically, for a credible turnaround plan for the diagnostics business in China. Without positive signals on both fronts, the stock could well test new lows.