REAL-TIME GLOBAL RESEARCH
Schneider Electric: Q3‘26 Sales - First Take - Triple-digit DC growth drives strong Q3, FY guidance upgrade largely in line with consensus
Key takeaways
- Q3’26 Sales - First Take - Triple-digit DC growth drives strong Q3, FY guidance upgrade largely in line with Our Take: The Schneider results are objectively strong at +16.9% OSG, driven by Data Center and the broadening
- However, a beat and raise was everybody’s base case.
- Based on our conversations, buyside expectations were 16%+, so the beat is relatively modest versus that bar.
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Research evidence excerpt
Q3’26 Sales - First Take - Triple-digit DC growth drives strong Q3, FY guidance upgrade largely in line with Our Take: The Schneider results are objectively strong at +16.9% OSG, driven by Data Center and the broadening out of growth in other end markets including China and discrete automation, which is supportive of our positive sector stance overall and previously positive view on Schneider prior to the announcement of the PTC deal. However, a beat and raise was everybody’s base case. Based on our conversations, buyside expectations were 16%+, so the beat is relatively modest versus that bar. The growth was driven by Energy Management (+18.8% vs. +15.1% consensus), where the beat was driven by China & East Asia and South Asia & International regions, while North America growth (+20.3%) was slightly below consensus (+21.4%). Data Centers saw triple-digit growth in the quarter.
Industrial Automation organic growth (+8.1%) was slightly ahead of consensus (+7.7%) as weakness in China & East Asia and South Asia & International regions was offset by exceptional strength in North America (+16.3% vs. +7.1% consensus). Schneider raised FY guidance on both organic growth (lifting mp by 150bps) and Adj EBITA margin (lifting mp by 25bps). The midpoint of the new guidance is largely aligned with consensus, while achieving the upper end could bring an upgrade of ~2% to consensus 2026 Adj EBITA. There were no details on a potential capital increase to help fund the equity part of the PTC deal, which is an overhang for the shares.
Noteworthy Areas: Details on the headline numbers and versus consensus/ JPMe are in Table 1. Group sales came in 5%/3% versus JPMe/consensus, with Energy Management sales 6%/3% ahead and Industrial Automation 1%/1% ahead. Organic growth of +16.9% was stronger than JPMe/Consensus at +12.0%/+13.8%. (44-20) 7742-8733
- Products, 48% of Q3 revenues, was up +17% organically. Growth was mainly driven by volume, with price increasing sequentially as expected, and
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