Low-Key Winner in AI Frenzy! Schneider Electric Rides "AI Red Tide" to Record-Breaking Growth
Intelligent Finance APP has learned that Schneider Electric, a global leading electrical equipment manufacturer based in France, confirmed its 2025 performance forecast and highlighted the unprecedented expansion of AI data centers worldwide after releasing second-quarter financial reports on Thursday.
The report showed that the company's revenue grew by 8.3% year-over-year (compared to expectations) to reach €100.1 billion (approximately $114.3 billion). This outperformance is attributed to the strong demand for energy management business and AI data centers, which saw internal growth rates exceed 10%.
The company also confirmed its adjusted EBITA profit rate target for 2025 at around 18.7-19%, surpassing analysts' expectations of 18.8%. Schneider Electric's management team emphasized that the performance guidance has taken into account the impact of Trump's government tariffs, which they expect to continue affecting their growth trajectory.
Notably, before the company's performance report was released, some analysts predicted that Schneider Electric might reduce its performance forecast due to tariff pressure. However, driven by the AI frenzy, the company's management team expects its growth trajectory to continue with no signs of slowing down.
In response to a question about US tariffs, Schneider Electric's Chief Financial Officer Hilary Maxson told analysts that the company now estimates new costs to be "between €1 billion and €3 billion". Maxson added that the company had previously predicted tariff impact to be "several billion euros" and plans to offset it through price adjustments.
"For us, this (Trump's tariffs) is not a major negative factor. We will take measures to counterbalance in future quarters, and AI-driven Schneider Electric solution demand has the potential to completely cover the negative impact of tariffs," Maxson said during the performance conference.
Maxson also noted that North America is Schneider Electric's largest single market, accounting for approximately 38% of second-quarter revenue. The company produces around 83% of its products locally in this region, making it less affected by tariffs compared to European counterparts.
Schneider Electric reported that the global demand for data center solutions continues to grow rapidly, driven by the electrification trend and massive investments from US tech giants like Meta, Microsoft, Amazon, and Google. The company's Galaxy series UPS, Lithium-ion BESS, and SM6 gas-insulated switchgear are designed to be highly scalable and adaptable to 30-60 MW-level super-high-power AI modules.
The company's EcoStruxure DCIM+ digital twin software ecosystem is specifically designed for high-powered AI heat dissipation simulation, energy scheduling, and predictive maintenance. Schneider Electric's comprehensive "Schneider Electric Power Chain" solution includes Galaxy UPS, SM6 switchgear, and EcoStruxure DCIM+, enabling the company to provide a complete end-to-end power supply solution.
The rapidly growing AI training/prediction cluster demand has turned "power + cooling" into the core underlying resource for determining algorithm boundaries. Schneider Electric's strategic acquisitions of Motivair and other companies have enabled it to capitalize on this trend, with Q2 pipeline orders remaining strong.