Schneider Electric Posts Record Q3 and Lifts Target as Shares Slip

Schneider Electric (EPA: SU), the French maker of electrical equipment and automation systems, reported record third-quarter revenue of €11,460m and raised its 2026 profit target. Sales rose 16.9% on an organic basis, which strips out currency and acquisition effects, and 17.9% as reported.

Energy Management grew 19% organically, while Industrial Automation rose 8%. Data centre demand grew by triple digits, and chief executive Olivier Blum said it gives the group increasing visibility into 2027 and 2028.

The shares were quoted at €252.90 at 8.44am UK time today, down 1.98% on yesterday’s close of €258.00, with the Paris session still running. They opened at €263.15 and touched a low of €252.80, which leaves them 19.0% below the 52-week high of €312.30 reached on the 13th of August.

The shares have fallen since the $205-a-share cash offer for PTC was announced on the 5th of October, valuing its equity at about $22.6bn. They closed at €303.00 on the 2nd of October.

China and East Asia led regional growth at 26.1%, followed by North America at 19.9%, South Asia and International at 13.2% and Europe at 8.6%. Within Europe, UK Energy Management and UK Industrial Automation both grew by double digits.

Systems, 35% of revenue, grew 22% and Products, 48%, grew 17%. Software and Services rose 7%.

For 2026 the company now expects adjusted EBITA, its core operating profit measure, to grow 18% to 21% organically, on revenue growth of 12% to 14%. Margin should rise by 100 to 120 basis points, implying about 19.7% to 19.9%.

Schneider cautioned that Middle East disruption could affect the fourth quarter through supply chains and inflation.

PTC is expected to be low-single-digit accretive to adjusted earnings per share in the first year, rising to mid-to-high single digits with full synergies. Closing is anticipated by the third quarter of 2027. S&P and Moody’s affirmed Schneider’s credit ratings on the 6th of October.

A €600m buyback had bought 1.8m shares for €497m, an average of €269, by the 12th of October. A larger €2.5bn to €3.5bn programme to 2030 will pause in 2027 and 2028.