Schneider Electric (SCHN.PA): Schneider to buy Cognite for US$3.1bn

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Schneider Electric (SCHN.PA): Schneider to buy Cognite for US$3.1bn

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30 Jun 2026 13:53:35 ET │ 10 pages

Schneider Electric (SCHN.PA)

Schneider to buy Cognite for US$3.1bn

CITI’S TAKE

Schneider has announced that it will acquire Cognite, a provider of

Buy industrial data and AI software for an EV of US$3.1bn, ~18x trailing

Price (30 Jun 26 17:30) €285.40 revenue. Cognite’s roots are in the oil & gas / process industry, and we’d

expect the fit to Schneider’s Aveva applications and customer base to Target price €340.00

have been a key attraction. We had met Cognite alongside other players at Expected share price return 19.1%

the Hannover Fair in April (see here), where we had concluded that a Expected dividend yield 1.5%

number of blue-chip industrial customers were using smaller software Expected total return 20.7%

vendors for the data contextualization of their plant assets, with Cognite Market Cap €164,711M

also adding a layer on top of these contextualized datasets for AI decision

US$187,474M making. We had concluded at that time that incumbents would both

compete with, and in select cases acquire, these emerging AI players; we

see Schneider’s move for Cognite as consistent with that view, and a move

that strengthens Schneider’s position in Physical AI. Martin WilkieAC

+44-207-986-4077

The importance of data contextualization – Data contextualization is arguably the martin.wilkie@citi.com

key driver of Physical AI adoption – you can’t run the Physical AI tools without the

contextualized data, in the same way LLMs can’t be trained without text. The

specialist nature of contextualized data software suppliers – Oil & Gas and Process

industries in the case of Cognite – only underscores the moat from data access and

domain expertise.