Schneider Electric said on Thursday that core earnings outperformed market forecasts, propelled by a pronounced surge in data center demand that helped sustain its 2026 outlook even as currency movements weighed on results.
The French industrial group recorded triple-digit year-on-year growth in its pure data center segment. For the quarter, organic revenues rose 10.7% to 11.10 billion euros. For the full year, adjusted earnings before interest, taxes and amortisation - adjusted EBITA - reached 7.52 billion euros.
Those outcomes topped the averages in a company-run analyst poll, which had forecast fourth-quarter revenue of 10.90 billion euros and full-year adjusted EBITA of 7.48 billion euros.
Schneider emphasised that while the United States remains the primary engine for data center growth, demand is also gaining traction in Northern Europe and France. The companys chief financial officer, Hilary Maxson, told media that she is seeing openings in Europe where permitting and electrical connections have been resolved and where governments are pushing projects forward.
Over time Schneider has shifted from being chiefly an industrial components supplier - known historically for items such as fuses and circuit breakers - to a provider of much of the infrastructure that underpins modern data centers. Its portfolio ranges from cooling systems and server racks to critical power distribution equipment. Data centers and networks now represent roughly 30% of the company's total orders.
In keeping with the positive top-line trends, Schneider issued guidance for the year ahead that calls for organic revenue growth between 7% and 10% and an increase in adjusted EBITA margin of between 50 basis points and 80 basis points. Those targets align with the long-term framework the group laid out in December: average annual organic revenue growth of 7% to 10% and cumulative organic adjusted EBITA margin expansion of about 250 basis points between 2026 and 2030.
Despite the encouraging demand picture for data center-related products, Schneider warned of noticeable foreign exchange headwinds. The group, which generates over one third of its revenues in North America, expects a 2026 revenue impact from currency movements of between 850 million and 950 million euros. Currency shifts already trimmed fourth-quarter revenues by 701 million euros, attributable to a weakening U.S. dollar, Indian rupee and Chinese yuan.
Schneider also flagged import tariff effects, including in the U.S., estimating the impact for 2026 to be "a little bit less than double" the incremental 160 million euros reported for 2025, according to CFO Maxson.
Leadership changes were also disclosed. Hilary Maxson will leave the company on April 5. Schneider said investor relations head Nathan Fast will succeed her as CFO.
Key exchange rate reference used in reporting: $1 = 0.8462 euros.