Markets

Schneider Electric Raised Its Targets on Data-Centre Demand. The Stock Gave Up a 2% Gain

Schneider Electric reported 16.9% organic growth in the third quarter, its fastest in five years, and raised its 2026 targets on October 16. The shares rose as much as 2.4% in Paris, then turned lower as Europe weighed the AI trade.

Oct 16, 2026

Europe's largest maker of electrical equipment for data centres reported the kind of quarter the AI build-out was supposed to deliver. Schneider Electric's third-quarter revenue reached a record €11.46 billion, above the €11.13 billion analysts expected, and organic growth — excluding currency moves and acquisitions — was 16.9%, against a consensus of 13.8% and the fastest in five years.

The company raised its 2026 targets for the second time: organic growth of 12% to 14%, from 10% to 13%, and growth in adjusted operating profit of 18% to 21%, from 14% to 19%. Chief executive Olivier Blum said data-centre demand grew at a triple-digit rate, "providing increasing visibility into 2027 and 2028". North America, 40% of sales, grew 19.9%.

The share price told a more hesitant story. Schneider opened higher in Paris and reached €264.20, about 2.4% above Thursday's close of €258, but by late morning it was trading near €256.50, slightly lower on the day. The stock had already fallen 2.42% on Thursday as AI-linked shares sold off in Asia.

Europe as a whole was steadier. The Stoxx 600 rose about 0.5% to 643, on course for its best week since August, and Germany's DAX climbed 0.9% to its highest level since mid-September. Bloomberg noted that European shares were heading for their biggest weekly outperformance against the S&P 500 since March, as money rotated away from the US technology giants.

A stock that cannot hold a gain after a beat-and-raise is usually telling you the good news was expected. For Schneider, the open question is the one hanging over the whole AI supply chain: not whether this year's orders are strong, but whether the customers placing them can keep financing the spending into 2027 and 2028.