Schneider Electric Raises 2026 Growth Forecasts on Surging AI Data Centre Demand

FRANCE — Schneider Electric Raises 2026 Growth Forecasts on Surging AI Data Centre Demand

French industrial group Schneider Electric has upgraded its financial targets for 2026 for the second time this year, supported by sustained demand for data centre infrastructure as technology companies expand investments in artificial intelligence and cloud computing.

The company now forecasts organic adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) growth of between 18% and 21% in 2026, up from its previous estimate of 14% to 19%.

Schneider has also increased its organic revenue growth target to between 12% and 14%, compared with its earlier projection of 10% to 13%.

The improved outlook reflects strong demand for equipment and services required to construct and operate data centres. These facilities depend on extensive electrical distribution, cooling and infrastructure systems to handle increasingly demanding computing workloads.

Chief Executive Olivier Blum said data centres continued to represent a major growth driver, with Schneider reporting triple-digit demand growth in the segment during the third quarter.

The company also delivered third-quarter results above market expectations. Organic revenue increased 16.9% year over year to €11.46 billion, equivalent to $12.87 billion. The figure exceeded analysts’ average forecast of €11.13 billion, based on a consensus provided by the company.

Chief Financial Officer Nathan Fast called the quarter the strongest in Schneider’s history during a press call.

Major U.S. cloud computing companies remained important sources of demand for Schneider’s data centre business. However, China and East Asia recorded the strongest regional growth during the third quarter, according to the company.

Schneider serves major technology companies and digital infrastructure operators, alongside domestic and regional co-location providers that offer data centre capacity to multiple businesses.

The expansion of AI infrastructure has become an increasingly important source of business for the group. In addition to its established electrical equipment operations, Schneider provides cooling systems, server racks and critical power distribution equipment essential to data centre operations.

The company is also strengthening its industrial software capabilities as it develops a broader portfolio covering product design, industrial operations and energy management.

Its recent purchase of industrial artificial intelligence specialist Cognite and its $22.6 billion agreement to acquire engineering software maker PTC are part of that strategy.

Fast said Schneider would likely operate the PTC brand under a governance structure similar to Aveva, its industrial software business that it fully acquired in 2023.

Despite the stronger quarterly performance and upgraded forecasts, Schneider shares were little changed in early trading on Friday. The stock had risen around 10% since the start of 2026, although investor reaction to the PTC transaction in early October had weighed on its performance.

The latest forecast increase underscores the continuing commercial opportunities created by investment in AI infrastructure, particularly for industrial suppliers providing the power systems and equipment required to expand computing capacity.