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.
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%.
“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.
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.
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.
“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.
($1 = €0.8902)
(Reporting by Mathias de Rozario in Gdansk, editing by Milla Nissi-Prussak)
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