SCHNEIDER ELECTRIC ended higher on Monday, October 27, 2025, marking its third consecutive session of gains. The stock rose by 2.01% at close. Morgan Stanley raised its price target from 240 to 280 euros and upgraded from 'equal-weight' to 'overweight', providing significant support to the stock.
SCHNEIDER ELECTRIC closed at 258.75 euros, up 2.01% from 253.65 euros. The stock is on an upward trend: it has shown a weekly performance of 5.14%, quarterly of 9.52%, and annual of 6.77%. The CAC 40 index itself rose by 0.16%, reaching 8,239.18 points, with an annual gain of 9.89%. SCHNEIDER ELECTRIC significantly outperforms its benchmark index. However, activity remained low with only 0.12% of the capital traded, suggesting limited participation in price movements. The stock is approaching its highs since February, nearing 259.60 euros and remaining within 5% of that level. The technical context shows the stock well anchored above its main moving averages, providing a solid base for short-term prospects.
Analyst Support and Future Projections
Free · Every morning
Technical market signals, before the opening bell.
Bullish and bearish momentum, analyst changes, stocks to watch — automatically computed from Euronext data.
✓ Before 9 AM every morning✓ Euronext data✓ AI-powered analysis
Almost there! Check your inbox.
A confirmation email has been sent. Click the link to confirm your subscription.
An error occurred.
Indicative data. No investment advice. Unsubscribe at any time.
The bullish movement is primarily supported by Morgan Stanley's analyst revision, who foresee an inflection in operating margins starting from 2026-2027. Acknowledging slower margin progression at SCHNEIDER ELECTRIC compared to its competitors this year, the bank sees a reversal thanks to several catalysts: productivity gains, a rebound in profitable activities particularly in construction, and notably the completion of the transition to the SaaS model scheduled for 2027. This shift to subscription, which has been penalizing so far, is expected to stop weighing on margins by 2027. Morgan Stanley projects an earnings per share growth of 17% in 2027, driven by an organic expansion of 8% and a one percentage point margin improvement. In the longer term, the group has a competitive offering in the data center equipment market, particularly in liquid cooling, strengthened by its collaboration with NVIDIA.
Technical Analysis
From a technical standpoint, SCHNEIDER ELECTRIC is trading above its 50-day (232.29 euros) and 200-day (226.85 euros) moving averages, confirming a bullish structure. The Relative Strength Index stands at 54, indicating a neutral positioning. The MACD shows a slightly negative histogram of -0.19. The technical support is positioned at 226.95 euros. The one-month volatility is set at 6.45, reflecting moderate nervousness.
2025 est une année marquante. Le chiffre d’affaires atteint un niveau record, la marge d’EBITA ajusté croît malgré la volatilité, et la génération de cash-flow libre atteint un niveau historique.
Chiffre d’affaires 2025: 40 152 millions d’euros, croissance organique +8,9 %. EBITA ajusté 7 520 millions d’euros, +12,3 % organique. Résultat net: 4 163 millions d’euros. Cash-flow libre: 4 635 millions d’euros. Dividende par action: 4,20 euros. Objectif 2026: EBITA ajusté +10 % à +15 % organique; chiffre d’affaires +7 % à +10 % et marge EBITA ajusté +50 à +80 pb. Carnet de commandes 2025: 25 362 millions d’euros, visibilité renforcée.
Risks mentioned
Incertitude macroéconomique persistante affectant la demande dans certains marchés
Volatilité des devises et leur effet sur le chiffre d’affaires et la marge
Inflation des coûts et droits de douane pesant sur la marge brute
Risque lié à la transition des logiciels vers des abonnements et à l’évolution du mix produit
Opportunities identified
Demande soutenue sur les centres de données et les marchés finaux des industries et infrastructures
Croissance des revenus récurrents via les Logiciels et Services
Solidité du carnet de commandes et potentiel de pipeline et de revenus récurrents
Outlook / guidance
Expected revenue: Le chiffre d’affaires 2026 est attendu entre 42,9 milliards d’euros et 44,2 milliards d’euros
Expected EBITDA: Objectif 2026: croissance organique de l’EBITA ajusté entre +10 % et +15 %
Expected net income: Le résultat net 2026 n’est pas communiqué; l’accent est mis sur l’EBITA ajusté et le cash-flow libre
Management commentary: La direction vise une croissance organique soutenue et une expansion de la marge d’EBITA ajusté, portée par la croissance du chiffre d’affaires et l’amélioration du ratio des coûts des fonctions support sur le chiffre d’affaires; l’objectif 2026 inclut un effet de change favorable potentiel et une stabilisation du cash-flow libre autour de 100 % sur la période 2026-2030.
The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.
Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.
