Schneider Electric tops revenue forecast as it rides AI data centre wave

Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST

April 30 : Schneider Electric narrowly beat first-quarter revenue expectations on Thursday, once again boosted by the global artificial intelligence data centre buildout reinforcing the French group's role as one of the most sought-after suppliers.

Revenue in the three months through March grew 11.2 per cent organically to 9.77 billion euros ($11.39 billion). That was a notch above the average consensus estimate of 9.76 billion euros, with 10.1 per cent organic growth expected by analysts polled by the company.

Large cloud providers, also known as hyperscalers, are expected to invest more than $600 billion into data centres and other AI-related infrastructure this year alone, analysts say.

Schneider makes power equipment, server racks and most importantly cooling systems that let energy-hungry data centres operate at peak performance. The booming demand for this technology, particularly from the United States, is driving Schneider's earnings, offering a stable and alternative revenue stream to the legacy electric equipment business. 

CNA Games

Guess Word
Crack the word, one row at a time

Buzzword
Create words using the given letters

Mini Sudoku
Tiny puzzle, mighty brain teaser

Mini Crossword
Small grid, big challenge

Word Search
Spot as many words as you can
Show More
Show Less

The $182 billion company, the fifth-largest by market value in France, is reaping gains from its acquisition of U.S. liquid cooling specialist Motivair last year, which expanded its product portfolio for data centres.

Consultancy firm Market Decipher has estimated that the global AI data centre liquid cooling market will grow to $18.1 billion by 2036, from only $3.7 billion in 2026.

Schneider confirmed its full-year targets and said it expected the negative impact of foreign exchange fluctuations on revenue to be between 750 million euros and 850 million euros in 2026. In February, it had estimated the hit to be between 850 million euros and 950 million euros.

($1 = 0.8578 euros)

Newsletter

Week in Review

Subscribe to our Chief Editor’s Week in Review

Our chief editor shares analysis and picks of the week's biggest news every Saturday.

Sign up for our newsletters

Get our pick of top stories and thought-provoking articles in your inbox

Subscribe here

Get the CNA app

Stay updated with notifications for breaking news and our best stories

Download here

Get WhatsApp alerts

Join our channel for the top reads for the day on your preferred chat app

Join here