Against the backdrop of geopolitical tensions and trade barriers, the Bosch Group intends to make the most of growth opportunities in its global markets with its full innovative strength in the fiscal year 2026. Initial investments required in strategically important future areas are expected to remain at the high level of previous years. In 2025, Bosch allocated approximately 12 billion euros for investments in research and development, as well as capital expenditures. The technology and services provider forecasts sales growth of 2–5 percent and an operating EBIT margin of 4–6 percent for 2026.
On the occasion of the company's annual results presentation, Stefan Hartung, Chairman of the Management Board of Robert Bosch GmbH, said, „As a global technology leader, we are committed to shaping trends in the areas of automation, digitalization, electrification and artificial intelligence, as they also pave the way for profitable growth in our business. An important prerequisite for this are the cost-cutting effects of the structural measures already initiated, as well as innovations in all areas of activity.” In terms of innovative strength, Bosch is one of the strongest industrial companies in the world and one of the most active patent applicants in Europe. Bosch registered around 6,300 patents in 2025 and was once again the leader in Germany. Despite significant challenges, Bosch realized sales revenues of 91.0 billion euros in FY 2025, slightly above the previous year's level (2024: 90.3 billion euros). Adjusted for exchange rate effects, this result corresponds to an increase of 4.1 percent. The operating EBIT margin was 2 percent, below the previous year's level (2024: 3.5 percent). The structural and personnel adjustments required to increase long-term viability had a considerable negative impact on the result in the form of provisions of €2.7 billion.
Strategy 2030: Innovation and Differentiation as Drivers of Growth
To ensure successful business development in an adverse global economic environment, the company must keep its costs competitive. With the finalization of discussions with employee representatives on necessary staff reductions at all affected locations in the Mobility division in Germany, Bosch is improving its future competitive position amid intensifying price pressure. „The negotiations have not been easy, but both sides have shown a strong sense of responsibility,” said Hartung, „We are now implementing the agreed measures as quickly and consistently as possible, but also in a way that is as socially acceptable as possible.” In the automotive industry, China currently sets the standard in terms of price levels. Hartung therefore sees the expansion of innovation leadership as a key success factor for business development, particularly in the automotive market, as well as for the implementation of the company's Strategy 2030, which envisages Bosch becoming one of the top three suppliers in its key markets. Trade barriers and different user expectations currently present both a challenge and an opportunity for regionally tailored solutions. „In international competition, it's not just about cost, but more about our ability to differentiate,” Hartung said, referring to Bosch's global footprint, which he sees as a competitive advantage. „We can tailor our offerings and supply chains to regional conditions while maintaining quality at global standards.”
Business Outlook 2026: Generating Funding for Strategically Important Future Sectors
Bosch estimates that the weak economic development of 2025 will persist in the current fiscal year. High levels of uncertainty, mainly driven by geopolitical developments, are offset by a largely resilient private sector and increased fiscal spending. However, price and competitive pressures remain high. Nevertheless, after adjusting for currency effects, Bosch recorded year-on-year sales growth in the first quarter. Bosch anticipates moderate global economic growth of only 2.5–3 percent.
„The foundation of profitable growth is our competitiveness – that's why we are making sustained efforts to further strengthen it,” he said. Markus Forschner, Member of the Board of Management and CFO of Robert Bosch GmbH. „This will strengthen our resilience in the face of future challenges and, at the same time, increase our investment capacity for the future.”
In light of strategic opportunities and as a precautionary financial measure, Bosch is appropriately expanding its framework for action: to ensure it can issue financial instruments such as bonds more flexibly over the course of the year, the company will publish consolidated interim financial statements and an interim group management report for the first half of the current fiscal year for the first time. Regarding this, Forschner commented: „This improves our access to capital markets, although we already rely on strong self-financing capacity.”
Sensor technology as a field of innovation: automation and robotics contribute to sales security
Bosch is driving numerous innovations in microelectronics and sensor technology and expects its consistent focus on „tech for a lifetime” to generate a significant boost to growth. Experts suggest that the global market for sensors could exceed 440 billion US dollars by 2031. Bosch is benefiting from the growing potential for applications: the company's sensors are playing an increasingly important role in robotics. The BMI5 sensor platform, for example, creates highly realistic virtual environments and helps robots find their way around even in difficult conditions. With this most advanced sensor solution to date, Bosch considers itself well positioned in a fast-growing segment. In the field of automated driving, inertial sensors are regarded as a key technology of the future and offer additional potential for sales growth. They enable cars to maintain full location awareness even when camera or GPS signals are not available.
„These sensors work for an autonomous car in the same way that the sense of balance works in the human inner ear,” said Hartung. According to analysts, the smart sensor market for automotive applications is estimated to nearly double, reaching over 80 billion US dollars by the middle of the next decade.
Innovations in Mobility: Algorithms and Propulsion Systems Drive Growth
Bosch estimates that the automotive software market will reach a value of approximately 200 billion euros by 2030. Therefore, Hartung anticipates significant growth opportunities in software-defined mobility.
„Bosch is leading the way in this field and is now literally bringing artificial intelligence into the driver's field of vision,” said Hartung. The new Bosch AI Extension platform is a high-performance computer equipped with artificial intelligence that, in combination with an interior sensing solution, turns driving into a deeply personalized experience. „The vehicle recognizes who's behind the wheel and detects if there are other passengers on board, then adjusts everything from the exterior mirrors and vehicle handling to optimized airbag deployment in the event of an accident.” Product innovations in intelligent driver assistance solutions are also generating new business opportunities worldwide: together with sensor technologies and vehicle central control units, Bosch has secured orders worth 10 billion euros by 2025. „Of course, the cars of the future will need not only algorithms, but also propulsion systems,” Hartung said in reference to the growing electromobility business. „This year alone, we will deliver more than 7 million solutions and components for electric driving.” Just a few weeks ago, Bosch announced a joint venture with Tata AutoComp Systems in India. Starting mid-year, this entity will focus on developing, manufacturing and selling electric axles and motors in the Indian market.
Innovations in Consumer Goods and Services: AI Powers Business
Artificial Intelligence (AI) also offers significant growth opportunities in the service and product businesses. For example, a new oven model with an AI-based voice function generates new sales potential for the BSH Hausgeräte division. No external speakers or additional applications are required. Overall, the global home appliance business in the luxury and premium segments is expected to continue to grow, particularly in North America. Market experts estimate that global home appliance sales will reach around 5 billion units by 2030. The use of AI is also spurring product innovations in the Power Tools division. Since the beginning of the year, the first 30 tools in the Expert product range have been launched on the market, setting new standards for professional power tools. Among them is a new wall scanner that locates objects in different types of wall structures and, for the first time, uses Bosch radar technology in combination with AI-based object detection. Bosch's service business is also benefiting from artificial intelligence: the Bosch Global Service Solutions division anticipates double-digit average sales growth by 2030 thanks to AI-based applications. Its service portfolio includes solutions for digital mobility services such as eCall and roadside assistance, as well as offerings for fleet operators and logistics service providers.
Fiscal year 2025: stable financial strength, liquidity and research and development report
Bosch recorded a positive free cash flow of approximately 300 million euros in 2025 (2024: approximately 900 million euros). The share of R&D investments stood at 8.7 percent of sales (2024: 8.6 percent). Research and development expenses amounted to 7.9 billion euros. „Even in challenging times, Bosch is prepared to make substantial upfront investments,” said Forschner. „Capital expenditures remained at a high level.” Bosch made considerable upfront investments in areas such as electromobility, semiconductors, and next-generation brake control systems. At 41.6 percent, the equity ratio also remained high (2024: 44.3 percent). The Bosch Group remains financially solid, even though liquidity according to the consolidated cash flow statement decreased to 7.4 billion euros (2024: 8.2 billion euros).
Fiscal Year 2025: Performance per Division
Sales performance in our business sectors was impacted by both the modest economic context in key markets and unfavorable exchange rate effects. The division Mobilize recorded a 0.1 percent increase in sales revenue, reaching 55.8 billion euros. Adjusted for currency effects, the increase was 2.9 percent. The EBIT margin from operations was 1.8 percent (2024: 3.8 percent). In the sector Industrial technology, sales increased by 0.1 percent to 6.5 billion euros. Adjusted for currency effects, this represents an increase of 2.4 percent. The development was mainly influenced by the declining market trend in North America. The EBIT margin rose to 3.5 percent (2024: 1.2 percent). Within the division Consumer goods Sales revenues decreased by 1.9 percent year-on-year, reaching 19.9 billion euros. Adjusted for currency effects, sales increased by 4.1 percent. The performance of this sector was particularly affected by the lack of dynamism in the construction industry in China and the US. The operational EBIT margin was 3.0 percent (2024: 3.5 percent). The sector Construction and Energy Technology generated sales of 8.5 billion euros. This represents an increase of 13.0 percent, or 15.6 percent adjusted for currency effects. The operational EBIT margin was 0.5 percent (2024: 4.9 percent), strongly influenced by exceptional costs associated with acquisitions and divestments.
Fiscal Year 2025: Evolution by Region
Although sales revenue in Europe saw a slight decrease, Bosch recorded moderate growth in other regions of the world. In Europe, sales revenue fell by 0.6 percent year-on-year to 44.2 billion euros – however, it increased by 1.5 percent after adjustment for currency exchange rate effects. In the Americas, sales revenue rose by 3.8 percent to 18.5 billion euros, or by 9.3 percent after adjustment for currency exchange rate effects. In the Asia-Pacific region, sales increased by 0.7 percent to 28.3 billion euros. Adjusted for currency exchange rate effects, the growth rate reached a significant level of 5.0 percent.
Fiscal Year 2025: Employee Count Evolution
At the end of 2025, the total number of employees worldwide in the Bosch Group stood at 412,774 associates (2024: 417,859), a reduction of approximately 1 percent (5,085 associates). This had the greatest impact on the Mobility business sector and, regionally, on Germany.