Summary
- Schneider Electric reported €11.46 billion of third-quarter revenue, up 16.9% organically and 17.9% on a reported basis.
- Data centre demand grew at a triple-digit rate globally, while sales into the pure data centre segment increased at a strong double-digit rate.
- The company's 2026 targets now call for 12–14% organic revenue growth and 18–21% organic adjusted EBITA growth.
French energy technology group Schneider Electric has upgraded its 2026 financial targets after reporting record third-quarter revenue, with strong demand for data centre power and cooling infrastructure helping to increase orders across its Energy Management business.
Revenue reached €11.46 billion in the three months to September, representing organic growth of 16.9% and reported growth of 17.9%. The company said demand from its data centre end-market grew at a triple-digit rate during the quarter, supporting another record order backlog.
Schneider now expects organic revenue growth of 12–14% for the full year, compared with previous guidance of 10–13%. Its adjusted earnings before interest, taxes and amortisation (EBITA) growth target has increased from 14–19% to 18–21%, also on an organic basis.
The company additionally expects its adjusted EBITA margin to increase organically by 100–120 basis points, implying a margin of approximately 19.7–19.9% after its current assumptions about acquisitions and currency movements.
These figures describe different performance measures. The triple-digit increase relates to customer demand in the data centre business, while sales into the pure data centre segment grew at a strong double-digit rate. Neither growth rate describes the company’s total revenue increase or the amount of new data centre capacity commissioned during the quarter.
Electrical and cooling equipment supports growth
Schneider’s Energy Management division generated €9.62 billion of third-quarter revenue, an organic increase of 18.8%. Industrial Automation contributed €1.85 billion, growing 8.1% organically.
Within Energy Management, the company reported particularly strong demand for prefabricated electrical infrastructure, three-phase uninterruptible power supplies and cooling systems. These products support the transformation of proposed data centre capacity into functioning facilities by providing power distribution, continuity and thermal management.
Schneider’s Systems business, representing 35% of total quarterly revenue, grew 22% organically. Its Products business, accounting for 48%, increased 17%, while Software & Services, representing 17%, grew 7%.
The division between products and systems is relevant to the delivery of large facilities. Individual electrical components must be selected and integrated into wider power architectures, while prefabricated assemblies can combine equipment into factory-built infrastructure packages.
Such approaches may reduce the amount of assembly and integration work required at a construction site. They do not, however, eliminate requirements for transport, installation, testing, commissioning or permanent electricity connections.
Schneider also reported growth in field services supporting data centres. Installation, commissioning and modernisation activities contributed to the 7% organic growth recorded in Field Services, alongside demand for recurring service arrangements.
These activities occur at different stages of an asset’s lifecycle. Equipment orders may be received well before construction is complete, whereas commissioning verifies systems before operation and maintenance services support facilities already in use.
The company’s Digital Services business recorded high-single-digit organic growth, supported partly by its EcoStruxure offerings for data centres. That software activity is separate from the physical installation and commissioning of electrical and cooling equipment.
European growth remains below global leaders
Europe generated €2.65 billion of Schneider’s quarterly revenue, representing organic growth of 8.6%. This compares with 19.9% in North America, 26.1% in China and East Asia, and 13.2% in South Asia and International.
European Energy Management revenue reached €2.11 billion, up 9.2% organically. Schneider attributed much of the division’s growth to data centre customers, particularly regional colocation operators adopting integrated prefabricated infrastructure.
Germany delivered strong double-digit growth, supported by both data centres and power-grid projects. France recorded high-single-digit growth led by data centres, while Nordic activity benefited from the execution of existing data centre projects.
The UK also recorded double-digit growth, although Schneider attributed the country’s performance to several markets, including buildings, industry and infrastructure. The company did not assign the entirety of its UK increase to data centre customers.
Energy Management and Industrial Automation also performed differently within Europe. Industrial Automation grew 6% organically, supported partly by AVEVA software activity and demand across industrial sectors.
These distinctions prevent the company’s regional financial results from being interpreted as a direct measurement of European data centre construction. Sales growth includes equipment, software and services delivered to projects at different stages of development.
North America accounted for approximately 40% of Schneider’s group revenue during the quarter, compared with 23% for Europe. The company’s global data centre demand was strongest in North America, while China and East Asia accelerated to a comparable growth rate.
Schneider also reported that demand remained broad across hyperscale, colocation, emerging cloud providers and edge customers. The geographic and customer mix indicates exposure to several segments of digital infrastructure rather than a single source of computing investment.
DataCentral previously covered Schneider’s expansion of its cooling distribution unit portfolio. The latest financial disclosure places such equipment developments within a wider increase in orders for power distribution, cooling and associated services.
The group announced a separate agreement in early October to acquire US engineering software company PTC. The acquisition remains subject to completion conditions and should not be treated as revenue already consolidated within the third-quarter results.
Schneider expects demand across its data centre and network business to remain strong through the fourth quarter. Its expanded order backlog provides visibility into future deliveries, although the conversion of customer demand into operating computing capacity will continue to depend on construction progress, electrical connections and commissioning.
