PARIS: Schneider Electric raised its 2026 core profit and revenue targets for the second time this year on Friday, as the French industrial group cements its role as a key supplier to big cloud companies building AI data centers.

Schneider expects adjusted earnings before interest, taxes, depreciation and amortization to grow between 18% and 21% organically in 2026, up from a previously forecast range of 14% to 19%.

The company sees organic revenue growth between 12% and 14%, compared with its earlier forecast of 10% to 13%.

“Data centers remained a key growth driver as we continue to execute on our backlog while seeing triple-digit demand growth in the quarter,” CEO Olivier Blum said in a statement.

Once mainly known for its circuit breakers and industrial electrical equipment, Schneider has emerged as one of the biggest industrial beneficiaries of the AI boom. The company builds the backbone of data centers, supplying everything from cooling units and server racks to critical power distribution equipment.

Revenue rose to a record 11.46 billion euros ($12.87 billion) in the third quarter, beating analysts’ average forecast of 11.13 billion euros in a company-provided consensus.

“Demand remained healthy across all four end-markets, supporting another record backlog at quarter-end,” Blum said.

Orders for data center power, cooling and automation equipment are sustained by continued strong demand from U.S. hyperscalers, though third-quarter growth was led by China and East Asia, Schneider said.

The data center business was the main growth driver in the region, both from direct sales to large customers in social media, technology and digital infrastructure and from domestic and regional co-location customers, the company added.