Schneider Electric (SU.PA): Q3 sales up 16.9% organically to a record €11.46bn as data centres lift 2026 targets

Schneider Electric, the French maker of electrical equipment for buildings, factories and data centres, reported third-quarter sales of €11.46bn on 16 October 2026, up 16.9% once currency and company purchases are stripped out. It called this the highest sales for any quarter in its history and raised its 2026 targets for the second time this year. $SU.PA

What happened

On Friday 16 October 2026 Schneider Electric published its sales for the three months to 30 September. Group sales were €11,460m, which the company describes as a record for any quarter. Growth was 17.9% as reported and 16.9% "organic", meaning the figure after removing the effect of currency movements and of businesses bought or sold, which is the fairest way to see whether existing operations are growing. The chief executive, Olivier Blum, said data centres remained a key growth driver, with demand growing at a triple-digit rate in the quarter, and that the company ended September with another record backlog, meaning orders accepted but not yet delivered.

The company then raised its full-year targets. It now expects 2026 organic sales growth of 12% to 14% and growth in adjusted EBITA, its own measure of operating profit before interest, tax and the write-down of acquired intangible assets, of 18% to 21% on the same organic basis. Reuters reports that the previous ranges were 10% to 13% for sales and 14% to 19% for profit; the company's release says only that the target was "upgraded". Schneider also said that disruption in the Middle East could affect the fourth quarter through pressure on supply chains and higher inflation.

The numbers, explained

Sales of €11,460m compare with €9,721m in the third quarter of 2025, a rise of €1,739m. Dividing 1,739 by 9,721 gives 17.9%, which matches the reported growth rate. The organic rate of 16.9% is lower because currency movements added about 1.2 points to the reported figure, while small disposals took off about 0.4 points. By business, Energy Management, which sells power distribution, cooling and automation for buildings and data centres, made €9,615m, up 18.8% organically, and is 83.9% of the group (9,615 divided by 11,460). Industrial Automation, which makes control equipment and software for factories, made €1,845m, up 8.1%, or 16.1% of the group. The two add to €11,460m.

By region, North America was the largest at €4,637m, 40.5% of sales, with organic growth of 19.9%. China and East Asia grew fastest, up 26.1% to €2,153m. Europe grew 8.6% to €2,646m and South Asia and International grew 13.2% to €2,024m; the four regions sum to €11,460m. By type of business, Systems (large installed packages) grew 22% organically, Products (individual items such as circuit breakers) grew 17%, and software and services grew 7%. The company says growth was mostly from higher volumes, with price rises from earlier in the year now fully in effect. Over nine months, sales were €32,686m, up 15.0% organically but only 12.5% as reported, because currency subtracted about 2.2 points.

Why it matters

Schneider earns its money by selling and servicing the equipment that distributes and controls electricity: switchgear, circuit breakers, power-protection units, cooling systems, and the software that runs them. AI data centres need very large amounts of reliable power and cooling, so spending by cloud companies flows to firms like Schneider. Reuters notes that growth in China was driven by direct sales to large technology and social media customers and by local data-centre operators, and that US cloud companies kept orders strong. The company expects industry and infrastructure customers to contribute strongly in the fourth quarter too, so it does not rely on one type of buyer.

Context helps here. Reuters reported that the average analyst forecast, compiled by the company, was €11.13bn, so the actual figure was €330m, or about 3.0%, higher (330 divided by 11,130). That comparison is an analyst estimate, not a company figure. The company also says its targets include only deals already completed. It has agreed to buy the US engineering software firm PTC for $205 a share in cash, valuing PTC's shares at about $22.6bn, and Shelly, a provider of smart-building and internet-connected home products, for about €1.2bn. Reuters reported the share price changed little in early trading and that the PTC deal had drawn a negative reaction in early October. These purchases would push Schneider further toward software.

What to watch next

Dated events are few. Schneider has said it expects the Shelly purchase, a tender offer for all shares, to close by the first quarter of 2027, and the PTC purchase by the third quarter of 2027, subject to regulatory approvals and a vote by PTC shareholders. Its full-year 2026 results are due on 18 February 2027, when the company will report whether the raised 2026 targets were met. We found no confirmed date for the PTC shareholder meeting, and we make no forecast about results.

• Organic growth: sales growth after removing currency effects and the effect of businesses bought or sold.
• Backlog: orders accepted by a company that have not yet been delivered or invoiced.
• Adjusted EBITA: a company-defined profit measure before interest, tax and the write-down of acquired intangibles; it is not a standard accounting figure.

Sources

• Schneider Electric third quarter revenues 2026 (regulated press release)
• Schneider Electric raises 2026 targets again on booming data centre demand (Reuters, via WMBD Radio)
• Schneider Electric Q3 results, data centre demand (Sharecast)
• Schneider Electric third quarter 2025 revenues (regulated press release)