Schneider Electric: Revenue Up 16.9% Organically in Third Quarter, Adjusted EBITA Target Raised

€11,460 Million in Third Quarter, with All Four Regions Growing

For the quarter, revenue increased 16.9% organically and 17.9% on a reported basis. The Energy Management division, at €9,615 million, grew 18.8% organically, compared to +8.1% for Industrial Automation, at €1,845 million. North America, which represents 40% of quarterly sales, posted +19.9% organic growth. It ranks behind China and East Asia (+26.1%), but ahead of South Asia and International (+13.2%) as well as Europe (+8.6%). By business model, systems (35% of revenue) advanced 22%, products (48%) by 17%, and software and services (17%) by 7%, organically. According to the group, product growth was predominantly driven by volumes, with price contribution increasing quarter-on-quarter. Data centers remain a key driver: demand in this segment recorded triple-digit growth for the quarter.

€32,686 Million Over Nine Months and Foreign Exchange Returns to Positive

The cumulative perspective points in the same direction. Over nine months, revenue reached €32,686 million, up 15.0% organically and 12.5% on a reported basis. The gap between the two measures reflects currency effects. Foreign exchange reduced revenue by 2.2% over nine months, but added €114 million in the third quarter, or 1.2%, primarily driven by the appreciation of the yuan and dollar against the euro. Scope variations, mainly related to small disposals, weighed €36 million on the quarter. Olivier Blum, Chief Executive Officer, stated that data center demand provided "increasing visibility on 2027 and 2028." He also noted that the order backlog reached a new record at the end of the quarter. The details reveal some localized declines. Industrial Automation systems recorded weak single-digit growth, with process automation and hybrid markets declining, penalized by weakness in China. In South America, Energy Management activity is slightly down, facing a high comparison base in Chile.

PTC Acquisition and 2026 Adjusted EBITA Target Raised to 18% to 21%

The definitive agreement signed on October 5, 2026, provides for the payment of $205 per PTC share in cash. It values 100% of the company's equity at approximately $22.6 billion, for an enterprise value of $23.7 billion. Completion is expected by the third quarter of 2027, subject notably to PTC shareholder approval and the obtaining of regulatory authorizations. The group targets €250 million in cost synergies by the end of the third year and approximately €800 million in revenue synergies. On October 6, 2026, S&P Global Ratings and Moody's confirmed ratings of A/A-1 and A2, with a stable outlook. The €600 million share buyback program was executed to the amount of €497 million as of October 12, 2026, and the group plans a pause in buybacks in 2027 and 2028. For the fourth quarter, Schneider Electric expects growth in its four end markets and four regions. The group indicates, however, that disruptions in the Middle East could weigh on this period, with possible tensions on global supply chains and increased inflation. The foreign exchange impact on annual revenue is estimated between -€300 million and -€400 million at current rates. The raised 2026 target is based on organic revenue growth of 12% to 14% and organic improvement in adjusted EBITA margin of 100 to 120 basis points. According to the group, this corresponds to an adjusted EBITA margin of approximately 19.7% to 19.9%.