Modular Data Centers and AI Solutions Could Be a Game Changer for Schneider Electric (ENXTPA:SU)

• In recent weeks, Schneider Electric has announced a series of partnerships and product launches, including modular data center solutions with Compass Datacenters and AVAIO Digital, expanded EcoCare services, and innovative electrical infrastructure products showcased at NECA 2025, underscoring its commitment to digital transformation and sustainable solutions.
• The breadth of these developments reflects Schneider Electric’s deep integration across fast-growing industries like data centers and electrical distribution, positioning it as a key solutions provider in the global shift toward electrification and intelligent infrastructure.
• We will examine how Schneider Electric's drive into data center modularity and AI-ready infrastructure impacts its long-term growth outlook.

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Schneider Electric Investment Narrative Recap

Schneider Electric’s story revolves around leveraging global electrification and digitalization trends, especially data center growth, to drive multi-year revenue and margin expansion. The recent €750 million convertible bond issue is unlikely to affect the company’s most important short-term catalyst, robust data center demand, but does slightly increase financial leverage, which remains a watchpoint given ongoing R&D needs, expansion projects, and acquisition spend.

Among Schneider Electric’s recent announcements, its partnership with Compass Datacenters to deliver AI-ready, prefabricated data center modules is particularly relevant, as it supports the largest growth engine and aligns closely with the market’s focus on digital infrastructure and capital efficiency.

However, while customers look for scale and speed, higher leverage and heavy investment schedules may expose shareholders to...

Read the full narrative on Schneider Electric (it's free!)

Schneider Electric's forecast points to €48.6 billion in revenue and €6.7 billion in earnings by 2028. This scenario assumes annual revenue growth of 7.3% and an earnings increase of €2.4 billion from the current €4.3 billion in earnings.

Uncover how Schneider Electric's forecasts yield a €253.10 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members’ fair value estimates for Schneider Electric range widely from €145.08 to €255.27 across 9 viewpoints. Many see the company’s accelerating digital and recurring revenue mix as a support for future earnings but also recognize margin pressures persist; review these opinions and explore a range of scenarios for yourself.

Explore 9 other fair value estimates on Schneider Electric - why the stock might be worth 36% less than the current price!

Build Your Own Schneider Electric Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Schneider Electric research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Schneider Electric research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Schneider Electric's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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