Schneider Electric raises 2026 targets again on booming data centre demand

By Mathias de Rozario and Matthieu Huchet

Oct 16 (Reuters) - Schneider Electric raised its 2026 core profit and revenue targets for the second time this year on Friday, as the French industrial group cements its role as a key supplier to big cloud companies building AI data centres.

Schneider expects its adjusted earnings before interest, taxes, depreciation and amortization to grow between 18% and 21% organically in 2026, instead of the previously forecast 14% to 19%.

It sees organic revenue growth between 12% and 14%, versus the earlier range of 10% to 13%.

"Data Centers remained a key growth driver as we continue to execute on our backlog while seeing triple-digit demand growth in the quarter," CEO Olivier Blum said in a quarterly statement.

Once mainly known for its circuit breakers and industrial electrical equipment, Schneider has emerged as one of the biggest industrial beneficiaries of the AI boom, building the backbone of data centres, supplying everything from cooling units and server racks to critical power distribution equipment.

Third-quarter revenue grew 16.9% organically to €11.46 billion ($12.87 billion), beating analysts' average forecast of €11.13 billion in a company-provided consensus.

"We delivered the strongest quarter in Schneider's history," finance chief Nathan Fast said during a press call.

Orders for data centres are sustained by continued strong demand from US hyperscalers, though third-quarter growth was led by China and East Asia, Schneider said.

The data centre business was the main growth driver in the region, both from direct sales to large customers in social media, technology and digital infrastructure, and from domestic and regional co-location customers, it added.

Schneider is also building up its software offering with the recent acquisition of industrial AI specialist Cognite and the $22.6 billion deal to buy engineering software maker PTC, as it seeks to create a platform spanning product design, industrial operations and energy management.

The PTC brand will likely be operated under a similar governance structure as Schneider's industrial software unit Aveva, fully acquired in 2023, Fast said.

Schneider shares were little moved in early trading. They have gained around 10% since the start of 2026, though the performance was dampened by a negative reaction to the PTC deal in early October.

($1 = €0.8902)

(Reporting by Mathias de Rozario and Matthieu Huchet in Gdansk, editing by Milla Nissi-Prussak)