Schneider Electric Sets 2026-2030 Targets Amid AI, Digitalization Push

05:56 AM EST, 12/11/2025 (MT Newswires) -- Schneider Electric (SU.PA) on Thursday launched its financial goals for full-year 2026 to 2030, as the French industrial technology company steps up efforts to integrate artificial intelligence into its digitalization strategy. The group extended its organic revenue compound annual growth rate target of 7% to 10% through 2030 and set a cumulative 250-basis-point organic improvement of its adjusted EBITA margin over the period. The targets assume no material changes in the macroeconomic and political landscapes. Schneider Electric is pushing to shift its revenue mix toward digitally enabled services to improve revenue resilience and "customer stickiness." By 2030, the Paris-listed company targets for digital flywheel revenue to account for more than 70% of group revenue, supported by software and services revenue rising to 25%. Concurrently, recurring revenue weightage is expected to double. To support these goals, Schneider Electric is unveiling its first energy and industrial foundational model to help resolve customer issues. The group describes the artificial intelligence-powered technology as using "the Data Cube and its Data Ecosystem to deliver physical intelligence combining the digital twin with the asset and domain experience solving real world customer challenges, enhanced by Agentic workflows on top of the Intelligence layer." The company also updated its capital allocation strategy, including plans to launch a share buyback program worth 2.5 billion euros to 3.5 billion euros through 2030. It further intends to launch a divestment program, totaling 1 billion euros to 1.5 billion euros in revenue, with completion expected by 2030. RBC Capital Markets reacted positively to the new targets, noting it sees a "potential double-digit consensus upside (though admittedly consensus is more thin by 2030)." "We see the extended targets as supportive. They reinforce our view of Schneider as one of the more resilient to cyclical risks in our coverage group, with a growth profile remaining above peers," the research firm wrote. Schneider Electric's stock was nearly 4% up by Thursday midday trading.