Schneider Electric reported stronger-than-expected organic revenue growth in the third quarter, driven by rising demand for data centres that power artificial intelligence. The French industrial group recorded a 9% organic revenue increase, reaching 9.72 billion euros ($11.7 billion), surpassing analyst expectations of 8.4% growth.
The surge in AI adoption has positioned Schneider Electric as a key supplier for data centre infrastructure. The company said sales in the data centre and network market grew by a double-digit percentage, led mainly by clients in the United States. Strong performances were also reported in China and France, although grid power availability in some European countries remained a challenge.
Schneider Electric has also managed to offset the impact of U.S. President Donald Trump’s import tariffs by strengthening its supply chain and committing over $700 million for expansion in the U.S. through 2027, though it raised prices as part of the process.
Since acquiring U.S.-based data centre cooling company Motivair in February, Schneider has capitalised on the global growth of data centres, where AI and cloud computing require large amounts of energy and cooling systems. Traditionally known for industrial components such as circuit breakers and fuses, the company now provides critical infrastructure like power equipment, cooling systems and server racks that enable uninterrupted operation of AI and cloud services.
Chief Financial Officer Hilary Maxson said the data centre sector is expanding rapidly, with this segment expected to contribute more than 24% of Schneider’s total revenue next year. While Europe continues to face delays, Maxson noted that data centre execution is improving, particularly in France.
The company reaffirmed its annual forecasts for revenue and profit margin growth but expects both to be at the lower end of the previously announced range. Shares of Schneider Electric were down 2.4% as of 0838 GMT.
“We expect momentum to continue into 2026, giving Schneider a mix of secular growth through its large data centre offering as well as further cyclical growth,” said analyst Matthew Donen.
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