Advertisement
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Private equity has played a significant role in shaping Indi...
Luxury real estate is one of the most talked-about segments ...
Airports play a much bigger role than just enabling travel -...
Schneider Electric has raised its full-year 2026 profit guidance after reporting stronger-than-expected first-half earnings, supported by sustained demand from the global data centre sector. The French industrial group, which supplies power management and cooling systems for data centres, exceeded analysts' expectations for adjusted EBITA in the first half of the year. While the company remains optimistic about growth, it cautioned that ongoing tensions in the Middle East could disrupt global supply chains and add inflationary pressure in the second half of the year. Currency fluctuations also weighed on second-quarter revenue.
French industrial group Schneider Electric has raised its full-year 2026 profit guidance after reporting strong first-half earnings, driven by continued demand from major cloud service providers investing in data centre infrastructure.
The company, which has expanded beyond its traditional industrial electrical products business to become a major supplier of data centre infrastructure, provides cooling systems, server racks, critical power distribution equipment and other energy management solutions used in large-scale data centres.
Following its latest financial performance, Schneider Electric now expects its earnings before interest, taxes and amortisation (EBITA) to grow between 14% and 19% in 2026, compared with its earlier guidance of 10% to 15%.
During the first half of the year, the company reported adjusted EBITA of EUR 4.09 billion (USD 4.68 billion), exceeding the analysts' consensus estimate of EUR 3.8 billion compiled by the company.
The company also flagged potential risks for the remainder of the year, stating that continued disruption in the Middle East could affect global supply chains and increase inflationary pressures, depending on how long the conflict continues.
Schneider Electric reported second-quarter revenue of EUR 11.46 billion. Currency fluctuations reduced revenue by EUR 124 million during the quarter, mainly due to the weaker US dollar and Indian rupee. The company also expects foreign exchange movements to reduce its full-year revenue by between EUR 400 million and EUR 500 million.
Chief Executive Officer Olivier Blum said in a company statement that demand from the data centre segment remained at a very high level during the first half of the year. He added that the company's Energy Management business also delivered broad-based growth across all end markets during the period.
Schneider Electric has increasingly strengthened its presence in the global data centre market over the past few years as rapid growth in artificial intelligence, cloud computing and digital infrastructure has led technology companies to invest heavily in new data centre capacity. This has helped the company diversify beyond its traditional industrial electrical equipment business and benefit from long-term demand for energy-efficient infrastructure solutions.
Source Reuters
Advertisement
Facebook
Whatsapp
