Schneider Electric raises 2026 targets after record €11.46B quarter

Schneider Electric reported record third-quarter revenue of €11.460 billion on October 16 and raised its 2026 growth forecasts. Revenue increased 16.9% organically and 17.9% on a reported basis compared with the same quarter a year earlier. The revised targets are forecasts, not completed full-year results.

The company raised its target for 2026 organic revenue growth to 12%–14%, from 10%–13%, and its target for organic adjusted EBITA growth to 18%–21%, from 14%–19%. Reuters reported that this was the second increase to the company’s targets this year. The quarter’s revenue also exceeded the company-provided analyst consensus of €11.13 billion, Reuters reported.

The higher ranges give investors an updated forecast for the year, while leaving actual full-year performance unresolved. Schneider expects to present its 2026 results on February 18, 2027.

Energy Management accounted for most revenue

Energy Management, the larger of Schneider’s two reported businesses, generated €9.615 billion in third-quarter revenue, with organic growth of 18.8%. Industrial Automation generated €1.845 billion, up 8.1% organically. Both businesses grew, but Energy Management contributed most of the quarter’s revenue and recorded the faster growth rate.

For the first nine months of 2026, group revenue totaled €32.686 billion, up 15.0% organically. Over that period, Energy Management grew 16.6% organically and Industrial Automation 7.9%. Those nine-month business rates show the same pattern as the third quarter: Energy Management grew faster than Industrial Automation.

Growth also differed across Schneider’s reported regions. Total-group organic growth was highest in China and East Asia and lowest in Europe among the four regions. The South Asia and International figure below is for the whole group, not the higher rate reported separately for Energy Management.

Data centers and the revised outlook

Schneider’s chief executive described data centers as a key growth driver and said demand in that market grew at a triple-digit rate. The company did not give a specific percentage. Management also said demand was healthy across all four of its end-markets and supported a record backlog. Those are the company’s characterizations; its results do not establish data centers as the sole source of growth.

The company also forecast organic adjusted EBITA margin expansion of 100–120 basis points for 2026. Based on transactions completed to date and its current foreign-exchange estimates, Schneider said that would imply a margin of about 19.7%–19.9%. The margin figure is an estimate tied to those assumptions, not a reported full-year result.

Schneider described the fourth-quarter environment as dynamic and identified possible Middle East-related supply-chain disruption and inflationary pressure as risks. The company’s raised targets therefore remain subject to conditions that could affect performance before its scheduled February results presentation.