Finance
France's Legrand shares rise as data centre demand prompts outlook hike
Published by Global Banking & Finance Review®
Posted on July 17, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 17, 2025
2 min readLast updated: January 22, 2026
Legrand shares rose over 8% as the company increased its sales forecast due to strong data centre demand, particularly in North America.
(Reuters) -Shares of Legrand gained more than 8% in early trading on Thursday, after the French electrical and digital building infrastructure group hiked its annual sales target driven by strong growth in the data centre segment in North America.
Tech companies, led by those in the U.S., are investing heavily in data centres to meet surging demand for data-hungry artificial intelligence models.
Legrand lifted the revenue growth target to between 10% and 12%, from the previously forecasted 6-10%. The revised outlook assumes organic growth of 5-7% and growth of around 5% from acquisitions, it said.
Its consolidated sales rose by 13.4% to 4.77 billion euros ($5.53 billion) in the first half of 2025, beating analysts' average forecast of 4.66 billion euros.
Legrand's shares top France's CAC40 blue-chip index, followed closely by its rival Schneider Electric.
"We note ... that data center (activity) remains a lumpy and important driver of quarter-to-quarter growth, so the guidance strikes us as pragmatic, which is in keeping with management's style," J.P.Morgan analysts wrote in a note to clients.
Analysts from RBC Capital Markets also highlighted that Legrand's management team is known to be conservative.
"It looks potentially like there is now further upside to management's 15-20% full-year growth guidance in data centres," they said in a note.
($1 = 0.8633 euros)
(Reporting by Mateusz Rabiega in Gdansk, editing by Milla Nissi-Prussak)
Legrand increased its annual sales target due to strong growth driven by demand for data centres, particularly from tech companies investing in infrastructure.
Legrand lifted its revenue growth target to between 10% and 12%, up from the previously forecasted 6-10%.
Legrand's consolidated sales rose by 13.4% to 4.77 billion euros, surpassing analysts' average forecast of 4.66 billion euros.
Analysts from RBC Capital Markets noted that Legrand's management team is known to be conservative, which influences their growth guidance.
Legrand's shares gained more than 8% in early trading, topping France's CAC40 blue-chip index.
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