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At the recent Innovation Summit North America, Schneider Electric revealed multiple high-value collaborations, including a US$1.9 billion supply capacity agreement with Switch, a US$373 million deal with Digital Realty, and a global supply chain decarbonization programme with Marks & Spencer, supporting sectors such as AI data centers, utilities, and retail sustainability.
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These partnerships highlight Schneider Electric’s central role in driving resilient, scalable energy infrastructure and advancing digital and environmental innovation across several industries worldwide.
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We’ll consider how Schneider Electric’s landmark data center agreements may strengthen its position within the evolving digital infrastructure market.
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Schneider Electric investors are buying into a vision centered on accelerating demand for digital infrastructure, electrification, and energy efficiency solutions worldwide. The recent US$1.9 billion and US$373 million data center agreements with Switch and Digital Realty meaningfully reinforce near-term catalysts tied to the AI-driven data center buildout, which remains a key growth engine; however, these deals do not materially reduce exposure to ongoing margin pressure from negative product mix, particularly as heavy investments ramp up to capture future demand.
Among the latest announcements, the large-scale Supply Capacity Agreement with Switch is particularly relevant, as it demonstrates Schneider Electric’s ability to capture a greater share of the rapidly expanding AI and hyperscale data center market, directly supporting the company’s multi-year growth pipeline in this sector.
In contrast, investors should be aware of ongoing risks around margin compression, particularly if growth in lower-margin Systems outpaces more profitable Product lines and leads to…
Read the full narrative on Schneider Electric (it’s free!)
Schneider Electric’s narrative projects €48.6 billion in revenue and €6.7 billion in earnings by 2028. This requires 7.3% yearly revenue growth and a €2.4 billion increase in earnings from €4.3 billion today.
Uncover how Schneider Electric’s forecasts yield a €265.10 fair value, a 15% upside to its current price.
Eight Simply Wall St Community fair value estimates for Schneider Electric range from €144.43 to €265.10 per share, highlighting widely differing views. While some participants see strong upside, the company’s exposure to ongoing margin headwinds could be a crucial factor shaping future performance; explore how other investors assess these potential trade-offs.