In a bold strategic shift, Siemens Healthineers announced at its recent Capital Markets Day that it plans to reconfigure its financial reporting into three standalone segments Imaging, Precision Therapy, and Diagnostics. While Imaging will continue to focus on prevention and disease detection, and Precision Therapy will combine oncology, advanced therapies, and ultrasound, the Diagnostics segment is being granted more strategic autonomy with its own setup and long-term roadmap. 

The diagnostics arm has struggled with slower growth, and Healthineers’ executives are reportedly weighing options including a spin-off or sale of the business by 2030, according to CEO Bernd Montag. This move is part of a broader effort to optimize capital allocation and let each business unit pursue its most effective growth strategy independently. The diagnostics unit is expected to improve toward mid-single-digit annual growth, compared to higher growth targets set for the Imaging and Precision Therapy segments. 

One indication of this shift was announced earlier: Siemens Healthineers revealed its intention to shut down its Fast Track Diagnostics (FTD) unit, which includes PCR-based testing products. The company said demand for these offerings declined sharply post-pandemic, prompting a reallocation of resources to areas with greater long-term potential. 

The realignment also comes amid mounting macro pressures. Higher U.S. import tariffs have weighed on Siemens Healthineers’ profitability. Despite this, the company remains confident in its future, targeting double-digit earnings per share growth through 2030 and a leaner, more focused diagnostics operation.