Siemens Healthineers (SHLG.DE): Q4 Preview: Will FY27 Guidance Meet Expectations?

We expect a solid year-end finish and forecast 6% organic sales growth. However, profitability is likely to be weak, with adjusted EBIT and adjusted EPS both expected to grow by only 1%, implying a 90-basis-point contraction in the adjusted EBIT margin. We anticipate that good top-line growth in the Imaging and Precision Therapy divisions will be offset by declines in Diagnostics, while inflationary cost headwinds continue to weigh on earnings. The key focus will be the company's new guidance for fiscal year 2027 and whether the provided range can bracket the current consensus expectation of €2.38 in adjusted EPS, which could be a challenging task given persistently high inflation. We expect the Imaging division to deliver 9% organic sales growth, benefiting from revenue that shifted from Q3 into Q4, while the Precision Therapy division is also anticipated to post another strong quarter with 8% organic growth. However, these two segments are the most exposed to persistent inflationary