Siemens Healthineers faces profit dip despite revenue growth and Alzheimer's test launches

Siemens Healthineers has reported mixed financial results for the first quarter of fiscal 2026. While revenue rose by 3.8 percent, adjusted earnings per share dropped by 3 percent to €0.49. The company also faces broader challenges, including a struggling diagnostics division and an upcoming spin-off from its parent company.

The diagnostics segment saw a 3 percent decline, largely due to weaker demand in China. Meanwhile, the company is pushing ahead with new neuro-focused products. Two research assays, Atellica IM pTau217 and Atellica IM Brain Derived Tau (BDTau), were launched to detect Alzheimer's-related proteins in blood samples. Both run on the existing Atellica analyser platform, expanding its biomarker capabilities.

These assays have already been used in major studies like PREDICTOM, ACCESS-AD, and Banner Sun Health Research Institute. Results were presented at the AD/PD conference in Copenhagen in March 2026, though they remain research-only tools for now. The company is also developing an ApoE-ε4 test linked to Alzheimer's and cardiovascular risks, alongside a CE-marked neurofilament light chain assay for multiple sclerosis prediction.

Despite these innovations, Siemens Healthineers expects a negative tariff impact of up to €500 million for the full year. The company's stock has also fallen by around 28 percent over the past year. Looking ahead, Siemens plans to distribute 30 percent of Healthineers' shares directly to its own shareholders, ending its majority stake in the business.

The neurology market presents long-term opportunities, with nearly 10 million new dementia cases diagnosed annually. However, Siemens Healthineers must first transition its brain health products from research to clinical use. The company's future performance will depend on overcoming current financial pressures and successfully scaling its diagnostics portfolio.