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Schneider Electric raises 2026 targets again on booming data centre demand - Finance news and analysis from Global Banking & Finance Review
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Schneider Electric raises 2026 targets again on booming data centre demand

Published by Global Banking & Finance Review

Posted on October 16, 2026

2 min read

· Last updated: October 16, 2026

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Schneider Electric Boosts 2026 Targets Amid Soaring Data Centre Demand

Schneider Electric Raises Profit and Revenue Forecasts

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.

Updated Financial Targets for 2026

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%. 

CEO Commentary on Data Centre Growth

"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 statement.

Schneider’s Role in the AI Data Centre Boom

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.

Record Revenue and Market Performance

Its revenue grew to a record high of €11.46 billion ($12.87 billion) in the third quarter, beating analysts' average forecast of €11.13 billion in a company-provided consensus.

End-Market Demand and Regional Growth

"Demand remained healthy across all four end-markets, supporting another record backlog at quarter-end," Blum said.

Orders for data-centre power, cooling and automation equipment 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.

Additional Information

($1 = €0.8902)

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

Key Takeaways

  • Schneider lifted its 2026 organic EBITDA growth target to 18–21%, up from the prior 14–19% range, and raised its organic revenue growth projection to 12–14%, versus 10–13% previously. (se.com)
  • Third-quarter revenues reached a record €11.46 billion, beating consensus of €11.13 billion, underpinned by triple‑digit growth in data centre backlog. (live.euronext.com)
  • Schneider continues to benefit from the AI data centre build‑out across regions: robust demand from US hyperscalers, but Q3 growth was led by China and East Asia, supported by both direct large‑customer and co‑location sales. (live.euronext.com)

References

Frequently Asked Questions

Why did Schneider Electric raise its 2026 targets?
Schneider Electric increased its 2026 profit and revenue targets due to continued strong demand for data centre equipment from big cloud companies and surging AI data centre construction.
Which markets drove Schneider Electric's recent growth?
Recent growth was led by China and East Asia, with strong demand across all four end-markets, and significant orders from data centre power, cooling, and automation sectors.
What products does Schneider Electric supply to data centres?
Schneider Electric provides cooling units, server racks, power distribution equipment, and automation technology to AI data centres.
How much revenue did Schneider Electric report in Q3?
The company reported record-high third-quarter revenue of €11.46 billion ($12.87 billion), exceeding analyst expectations.

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