Schneider Electric lifts 2026 outlook as data-centre demand surges
Schneider Electric's Financial Performance and Market Outlook
By Mathias de Rozario and Aleksandra Kret
Strong Financial Results and Upgraded Guidance
July 30 (Reuters) - Schneider Electric raised its full-year guidance on Thursday as the French industrial group cements its role as a key supplier to big cloud companies building data centres, sending its shares up more than 7% in early Paris trading.
Schneider, once known primarily for industrial components like fuses and circuit breakers, now builds the backbone of data centres, supplying everything from cooling units and server racks to critical power distribution equipment.
Upgraded Growth Expectations
The company expects EBITA growth of between 14% and 19% in 2026, against the 10% to 15% range earlier, and forecasts full-year revenue to grow 10% to 13%, higher than the 7% to 10% expected earlier.
It posted an adjusted EBITA of €4.09 billion ($4.68 billion) for the first half of the year, beating analysts' €3.8 billion expectation in a company-provided consensus.
Comments from Leadership
"We delivered a record first-half... that was boosted by growth in data centres, but we saw growth across all regions, all businesses, and all four end markets," finance chief Nathan Fast said in a call with journalists.
Regional and Sector Insights
A majority of the company's data centre gigawatts were concentrated in North America, but Fast sees a pick-up in demand from Southeast Asia.
He flagged a recovery in the buildings sector in Europe.
"It's better than we do in China and the U.S. that still remain quite subdued," Fast said.
Currency and Geopolitical Impacts
Schneider's second-quarter revenue of €11.46 billion took a €124 million currency hit, mainly from a weaker U.S. dollar and Indian rupee.
The company anticipates a €400 million to €500 million currency drag on its full-year revenue.
The disruption in the Middle East will impact the second half of the year, with potential for pressure on global supply chains and increased inflation dependent on the duration of the conflict, Schneider said.
Additional Information
($1 = 0.8732 euros)
(Reporting by Mathias de Rozario and Aleksandra Kret in Gdansk; Editing by Mrigank Dhaniwala)
