Schneider Electric: Record Revenue of €9.8 Billion in Q1, Despite Currency Headwinds
Schneider Electric recorded a record revenue of €9.8 billion in the first quarter of 2026, with an organic growth of 11.2%, driven by the strength of data centers and North America. Despite this commercial momentum, the group faces negative currency effects (minus 6.7% of revenue) and increasing geopolitical uncertainties that weigh on regional prospects. The management has reaffirmed its 2026 targets but signals increased vigilance on fragile markets.
Data Centers and North America Drive Growth
First quarter revenue amounted to €9,767 million, with organic growth of 11.2%, benefiting from double-digit dynamics in Systems (plus 16%) and Products (plus 9%). The Energy Management business grew by 12.8% organically, fueled by double-digit growth of data centers across all geographies, particularly in North America where demand remains concentrated. North America, accounting for 38% of quarterly revenue, posted an organic growth of 14.4%, while China and East Asia recorded a rise of 14.2%. The United States generated double-digit growth driven by volumes and price impact, with data centers as the main driver. Industrial Automation progressed more moderately, by 4.4% organically, with a continuous recovery in the discrete manufacturing industries market.
Currency Effects Nibble at Gains, Persistent Uncertainty
Despite strong organic solidity, the group suffered a currency impact of minus 6.7% for the quarter, bringing reported growth down to 4.7%. For the whole of 2026, Schneider Electric anticipates a currency impact ranging between minus €750 million and minus €850 million, penalizing the adjusted EBITA margin by about 10 basis points. The group highlights increased uncertainty related to macroeconomic and geopolitical developments, affecting certain regional markets. The South Asia and International region may face disruptions in the second quarter due to tensions in the Middle East. France and Germany are experiencing measured growth (respectively in mid-range single digits), while the Chinese and American residential markets remain under pressure from interest rates.
2026 Targets Maintained: EBITA Growth Between 10% and 15%
Schneider Electric reaffirms its target for organic growth of adjusted EBITA 2026 between 10% and 15%, supported by organic revenue growth between 7% and 10%. The group anticipates an improvement in the adjusted EBITA margin of 50 to 80 basis points organically, bringing it to approximately 19.1% to 19.4%. Management is counting on a net positive price impact in value over the year and on a balanced contribution from all four regions to growth. It also expects an increase in Software and Services with a focus on recurring revenues. Concurrently, a systematic share buyback program of €2.5 billion to €3.5 billion is ongoing until the end of 2030, having generated €110 million in buybacks since its launch in March 2026.
