Schneider Electric Raises 2026 Targets After Record Quarterly Revenue

Schneider Electric raised its 2026 growth targets after third-quarter revenue hit a record, with global demand across its pure data-center segment growing at a triple-digit rate.

Revenue for the quarter ended Sept. 30 reached €11.46 billion, up 16.9% organically and 17.9% on a reported basis from a year earlier. The result marked a quarterly record. Organic growth accelerated from 9% in the third quarter of 2025. Energy Management generated €9.615 billion, up 18.8% organically, while Industrial Automation brought in €1.845 billion, an 8.1% increase.

Demand in Schneider’s pure data-center segment rose at a triple-digit rate worldwide, while sales in the segment advanced at a strong double-digit pace. Customers included hyperscale, colocation, neo-cloud and edge businesses. Sales growth came from prefabricated systems and equipment for electrical distribution, protection and cooling.

Data-center demand was strong across all four regions, led by North America, while China and East Asia accelerated to a similar pace. Across the group, organic revenue increased 26.1% in China and East Asia, 19.9% in North America, 13.2% in South Asia and International, and 8.6% in Europe.

Each of the four end markets also recorded healthy demand, and backlog reached a record at quarter-end. In the 2025 order mix, the combined Data Center & Networks category, which includes networks as well as data centers, made up 30% of orders. Buildings represented 29%, Industry 27% and Infrastructure 14%.

Products represented 48% of revenue and grew 17% organically, mostly on higher volume. Pricing contributed more than in the prior quarter. Systems, representing 35% of revenue, grew 22% organically.

Chief Executive Officer Olivier Blum said data centers remained a key growth driver, with demand “providing increasing visibility into 2027 and 2028.”

The company raised its 2026 organic revenue growth range to 12% to 14%, from 10% to 13%. Schneider now projects organic adjusted EBITA growth of 18% to 21% for 2026, compared with its previous 14% to 19% range. The outlook also calls for organic adjusted EBITA margin expansion of 100 to 120 basis points.

Schneider expects pricing momentum to offset raw-material inflation and net tariffs this year. It also flagged that Middle East disruption may pressure fourth-quarter supply chains and add to inflation.