Schneider Electric SE

Latest Results (26.08.2026):

Schneider Electric SE — Q2 2026 (reporting H1 2026): the company delivered a record first half and a record Q2, driven by broad-based demand (notably Data Center), strong execution of its new company program and industrial productivity. Q2 revenues reached €11.459 billion (≈€11.5bn) with organic growth ~+17%, H1 revenues were €21.226 billion (+14% organic). H1 adjusted EBITA was €4.093 billion (margin 19.3%, +120bps organic), Net Income €2.488 billion (+30% reported) and Free Cash Flow €1.631 billion (+244%). Schneider Electric SE upgraded its 2026 financial targets and announced strategic M&A to accelerate Energy & Industrial AI.

Top-line performance

Q2 2026 revenues €11,459m (≈€11.5bn), ~+17% organic; H1 2026 revenues €21,226m, +14% organic. Growth was broad-based across businesses and regions, led by North America (+23% org. in Q2) and China & East Asia (+20% org. in Q2), with Data Center demand running at triple-digit growth in Q2.

Profitability

H1 2026 adjusted EBITA €4,093m, +22% organic; adjusted EBITA margin 19.3% (+120bps organic vs. H1 2025). Adjusted EPS €4.79 (+28.5% organic).

Net income and cash

H1 2026 Net Income (group share) €2,488m (+30% reported). Free Cash Flow €1,631m (+244% year‑on‑year), operating cash flow €3,755m and capex ≈€669m (≈3.2% of revenues). Cash conversion (FCF / Net Income) was 66% in H1.

Business mix and margin drivers

Products (47% of Q2) grew double-digit with accelerating price realization; Systems (35%) grew ~+28% org. in Q2; Software & Services (18%) grew mid-single digits with AVEVA ARR up ~+11%. Margin expansion driven by industrial productivity, operating leverage and price offsets vs. raw-material and tariff headwinds.

Guidance and targets

2026 targets upgraded: adjusted EBITA growth +14% to +19% organic, revenue growth +10% to +13% organic, and adjusted EBITA margin +70–100bps organic (implying ~19.4%–19.7% adjusted EBITA margin for FY2026, subject to scope and FX).

M&A and strategic moves

Announced definitive agreements to acquire Cognite (enterprise value $3.1bn) and ~90% of AiDASH (EV ~$350m) to strengthen industrial data/AI and Energy Intelligence capabilities; both deals subject to regulatory approvals.

Capital allocation & balance sheet

Net debt at 30 June 2026 €15.36bn (up vs. Dec‑25), dividend for FY2025 (€4.20/sh) paid May 13, 2026, and a €600m share‑buyback program underway (≈€310m executed as of 27 July). The company completed bond and EMTN issuances to extend maturity profile.

Risks & FX

Schneider Electric SE noted an FX headwind at current rates estimated ≈‑€400m to ‑€500m on FY 2026 revenues; geopolitical disruption in the Middle East and commodity/tariff pressures are flagged as possible H2 risks. Expected FY26 effective tax rate ~23–25%.