Schneider Electric Raises 2026 Targets on AI Data Center Demand

Schneider Electric raised its 2026 core profit and revenue targets for the second time this year, citing booming demand for AI data centers. The company now expects organic adjusted earnings before interest, taxes, depreciation, and amortization to grow between 18% and 21%, with organic revenue growth projected between 12% and 14%.

Third-quarter organic revenue rose 16.9% to €11.46 billion, exceeding analyst forecasts. While demand from U.S. hyperscalers remains strong, growth in the third quarter was primarily driven by China and East Asia. Finance chief Nathan Fast characterized the period as the strongest quarter in the company's history.

To expand its software capabilities, the company recently acquired industrial AI specialist Cognite and entered a $22.6 billion deal to purchase engineering software maker PTC. CEO Olivier Blum noted that data centers remained a key growth driver as the company executed on its backlog and experienced triple-digit demand growth during the quarter.