French industrial group Schneider Electric raised its full-year core profit guidance as it cements its role as a key supplier to big cloud companies building data centres.
Schneider, once known primarily for industrial components like fuses and circuit breakers, now builds the backbone of data centres, supplying everything from cooling units and server racks to critical power distribution equipment.
The company now expects EBITA growth between 14% and 19% in 2026, from the previously expected 10% to 15% range.
Adjusted EBITA came in at €4.09 billion ($4.68 billion) for the first half of the year, beating analysts' €3.8 billion expectation in a company-provided consensus.
The company expects disruption in the Middle East to impact the second part of the year, with potential for pressure on global supply chains and increased inflation dependent on the duration of the conflict.
Schneider's second-quarter revenue of €21.23 billion took a €124 million currency hit, mainly from a weaker U.S. dollar and Indian rupee. The company expects a €400 million to €500 million currency drag on its full-year revenue.
"While demand in Data Centers remained at a very high level, Energy Management delivered broad-based growth in H1 across all end markets," CEO Olivier Blum said in a statement.
($1 = 0.8732 euros)
