Schneider Electric (SU) Q2 2026 earnings summary

Executive summary

• Record H1 2026 revenues of €21.2bn, up 14% organic, with strong execution and broad-based demand across all end-markets, especially Data Center and Infrastructure.

• Both Energy Management and Industrial Automation delivered robust growth, with Q2 acceleration and significant contributions from North America, China, and India.

• Strategic acquisitions (Cognite, AiDASH) and partnerships (Kraken, Foxconn, SoftBank) are enhancing digital, AI, and technology leadership.

• Employee engagement remains high, with 80% engagement and 62% employee shareholding participation.

• Sustainability Impact 2030 program advanced, with external recognition for ESG leadership and operational excellence.

Financial highlights

• Adjusted EBITA reached €4.1bn, up 22% organic, with margin expanding to 19.3% (+120bps organic); gross margin at 42.5% (+10bps organic).

• Net income rose 30% to €2.5bn; adjusted net income up 21% to €2.7bn; adjusted EPS at €4.79 (+21%).

• Free cash flow surged to €1.6bn, up 244% year-over-year; cash conversion ratio at 66%.

• Net financial debt stood at €15.4bn after dividend and share buyback payments.

• Dividend of €4.20 per share paid for FY25.

Outlook and guidance

• Upgraded 2026 targets: Adjusted EBITA growth of +14% to +19% organic, revenue growth of +10% to +13% organic, and margin improvement of +70bps to +100bps organic.

• Adjusted EBITA margin expected at 19.4%–19.7% for 2026.

• All four end markets and regions expected to contribute to H2 growth, with Data Center & Networks, U.S., and India leading.

• Continued focus on gross margin improvement, pricing, and industrial productivity.

• Potential supply chain and inflation risks from Middle East disruptions.