French Tech Giant Schneider Electric Exceeds Earnings on AI Data Center Boom

Schneider Electric reported better-than-expected quarterly profits Thursday, powered by explosive growth in data center infrastructure demand. The French industrial company saw triple-digit increases in its data center business despite currency headwinds from a weakening dollar.

French technology and industrial company Schneider Electric delivered quarterly earnings that surpassed Wall Street expectations on Thursday, fueled by surging demand for data center infrastructure amid the artificial intelligence boom.

The company experienced explosive triple-digit percentage increases in its data center business segment compared to last year, helping drive overall quarterly revenue up 10.7% organically to 11.10 billion euros ($13.12 billion). Full-year adjusted earnings before interest, taxes and amortization reached 7.52 billion euros.

Financial analysts surveyed by the company had projected fourth-quarter revenue of 10.90 billion euros and annual adjusted EBITA of 7.48 billion euros on average.

The industrial giant has transformed from its traditional roots manufacturing basic electrical components such as fuses and circuit breakers into a major supplier of comprehensive data center infrastructure. Today, Schneider provides everything from cooling systems and server storage racks to essential power distribution technology that keeps data centers operational.

The company joins a growing list of businesses reporting optimistic projections for AI-related demand in 2026, following similar positive forecasts from semiconductor leader Nvidia and French building infrastructure firm Legrand.

Looking ahead, Schneider projects organic revenue increases between 7% and 10% for the current year, with adjusted EBITA margins expanding by 50 to 80 basis points. These projections align with the long-term strategic goals announced in December, which call for average annual organic revenue growth of 7% to 10% and cumulative organic adjusted EBITA margin improvements of approximately 250 basis points from 2026 through 2030.

However, currency fluctuations present ongoing challenges for the company, which generates more than one-third of its revenue in North American markets. Schneider anticipates foreign exchange impacts will reduce 2026 revenues by 850 to 950 million euros, following fourth-quarter revenue reductions of 701 million euros caused by weakening values of the dollar, Indian Rupee and Chinese Yuan.

In leadership changes, the company announced that Chief Financial Officer Hilary Maxson will depart on April 5, with investor relations director Nathan Fast stepping into the CFO role.