Schneider Electric raises 2026 targets on AI data centre demand

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Schneider Electric raises 2026 AI targets

Highlights

Schneider Electric raised its 2026 adjusted EBITDA growth target to 18%-21% and organic revenue growth target to 12%-14%.
Third-quarter revenue reached a record 11.46 billion euros, surpassing the 11.13 billion euros analyst consensus and sustaining another record backlog.
Triple-digit data centre demand growth, particularly in China and East Asia, drove orders for power, cooling, and automation equipment, benefiting from U.S. hyperscaler investment.

Higher guidance follows record third-quarter sales

As reported by Reuters, Schneider Electric on Friday raised its 2026 adjusted EBITDA growth target to 18% to 21% on an organic basis, up from its previous forecast of 14% to 19%. The company also lifted its organic revenue growth target to 12% to 14%, compared with an earlier range of 10% to 13%.

Third-quarter revenue reaches a record 11.46 billion euros, ahead of the 11.13 billion euros average analyst forecast in a company-provided consensus. CEO Olivier Blum says in a statement that demand remains healthy across all four end-markets, supporting another record backlog at the end of the quarter.

Data centres drive regional and sector momentum

Blum says data centres remain a key growth driver as Schneider continues to execute on its backlog while seeing triple-digit demand growth in the quarter. The group, once known mainly for circuit breakers and industrial electrical equipment, is now one of the main industrial beneficiaries of the AI investment boom through products such as cooling units, server racks and critical power distribution equipment.

Schneider says orders for data-centre power, cooling and automation equipment are sustained by continued strong demand from U.S. hyperscalers, although third-quarter growth is led by China and East Asia. In that region, the data-centre business is the main growth driver through both direct sales to large social media, technology and digital infrastructure customers and demand from domestic and regional co-location operators.

In our earlier coverage of how AI is reshaping corporate competitiveness, we explained that the rapid spread of artificial intelligence is raising performance expectations and making “average” execution a riskier strategy. The piece highlighted that companies increasingly need to rethink investment priorities, skills, and operating models to capture productivity gains—while those that fail to adapt face growing pressure and potential market irrelevance.

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