Good morning, good afternoon, everyone, and welcome to Schneider Electric's third quarter 2026 revenue webcast. Thank you for joining this morning, and thank you for your continued interest in Schneider Electric. I am joined today with Olivier Blum, our Chief Executive Officer, and with Nathan Fast, our Chief Financial Officer. Before we get started, just a quick reminder to take note of the disclaimer on slide two regarding the forward-looking statements. Olivier will start with a few opening remarks before handing over to Nathan to take you through the quarter in more detail. We will then open line for your questions. With that, Olivier, over to you.
Thank you, Antoine. Good morning, everyone. Great to be with you. Look, after the important strategic announcement of the last few days, Nathan and I are extremely pleased to be with you today to discuss the strong Q3 for Schneider Electric. At the end of H1, together, we spoke about the momentum across the group and our focus on discipline execution, which is part of our new company plan, Next. Q3 shows that momentum continuing and strengthening. You will see that we delivered EUR 11.5 billion in terms of revenue, which is a new record for Schneider Electric, not just for the third quarter, but for any quarter in our history. It is very important for me and for the teams, and I am sure for you, this performance is broad-based across both businesses, all our end market, and all our four regions at Schneider Electric.
For me, that breadth matter a lot, demonstrate the strength of our positioning, and it gives us the confidence in our ability to sustain performance and create value over the long term. Against this backdrop and reflecting on our performance year to date, we are upgrading for the second time in 2026 our full year target, both on top line growth and adjusted EBITA margin expansion, and I will come back on that after the presentation of Nathan. A very strong quarter overall. We are going to give you more detail. You will see that we have a broad-based momentum continued with a very strong and disciplined execution. With that, Nathan, I hand over to you to go a little bit more in the details of the numbers for Q3.
Yeah, wonderful. Thanks, Olivier, and hello, everyone. I will start with our key revenue highlights for the quarter. Our Q3 revenues reached EUR 11.5 billion, having grown at a strong 17% organic year -over -year. Both businesses are contributing to this strong outcome, with energy management delivering an outstanding 19% organic growth, taking revenues in that business to EUR 9.6 billion for the quarter. Industrial automation continued solid momentum, up 8% organic to reach EUR 1.8 billion of revenue. Turning now to demand across our end markets and segments. Once again, demand was broad based in nature in Q3. We show you the year-to-date demand drivers on this slide. Data center continues to be exceptionally strong with another quarter of triple-digit demand growth in Q3, further improving our visibility into 2027 and 2028. Semiconductor, which is smaller in exposure, is also seeing sustained high demand linked to the overall AI architecture build-out.
We continued to see strong demand across most segments, though the positive contribution from residential has not matched the level of the other segments. Turning to our mix of business models for Q3. Product growth accelerated to 17% organic. Price contribution continued to increase sequentially, with product pricing in Q3 around the same level in value as we delivered in the whole of H1. The proactive price increases we made at the start of the year are now at full run rate, and price realization is ramping up on the supplementary actions we continue to take. Product volumes are also therefore accelerated, with contributions from both businesses. Our systems business model, where we primarily sell direct to end user, continued with high demand and strong execution, translating into sales growth of 22% driven by data center, but also supported by strong contribution from infrastructure.
Software and services grew 7%, with AVEVA's ARR and Q3 organic sales growth both at around 10%. Our EM software assets grew mid-single digit organic with strong performance at ETAP, as both ETAP and RIB continue their own transition to subscription revenue model. Services grew high single digit overall, with good traction in several aspects of digital services. Moving to an overview of Q3 revenue by geography. We were up 16.9% organic to EUR 11.5 billion, and as Olivier mentioned, a record for any quarter with all regions contributing. In particular, we have China and East Asia delivering an incredible 26% growth, and North America showing consistent strength at 20%. India continues to track at high growth levels as well, demonstrating that our largest markets are all in good health.
Scope impacts in Q3 were immaterial, while Forex impacts became a tailwind to revenue in Q3, due mainly to the strengthening of the Chinese yuan and U.S. dollar against the euro. As you can see on the slide, if rates remain where they are today, we would expect Forex impact of EUR -300 million to EUR -400 million in revenues and negligible impact in adjusted EBITA margin for the full year. All in, this equates to reported growth of 17.9%, maintaining momentum as we drive strong execution across the group. Focusing now on geographic drivers that accelerated energy management growth to 19% organic in Q3. North America was up 20%, with the U.S. driven by momentum in data centers, where we saw sustained high demand for prefabricated solutions and cooling. We saw solid growth in total across the other end markets, led by non-residential buildings.
In Canada, we also grew double digits, as did Mexico, although against a low base of comparison there. Europe grew at 9%, led by performance in data center and grid, with non-residential buildings also making good contribution to growth. All the major economies of the region delivered growth, with Germany and U.K. up double digit and single-digit growth from France, Italy and Spain. China and East Asia was up a super strong 32%. China was up strong double digit, led by everything to do with investment in AI infrastructure, driving growth in the data center and semiconductor segments, in particular. East Asia also grew strong double digit, with some very high growth rates in countries like Malaysia, Thailand, Indonesia, on the back of execution on some large data center projects, and with semiconductor also a growth driver in the region.
South Asia and International grew 16%, with strong growth trends across most of the zones. Growth in India continues to be very strong and broad-based across all end markets, while Australia and Middle East also both grew double digits, benefiting from the strength in data center. South America was one area that was somewhat subdued, partially due to a high basis of comparison. Turning to the geographic drivers of industrial automation, which grew 8% in Q3, maintaining good momentum with strong growth at AVEVA and in discrete. North America grew a strong 16%, seeing strong growth in industrial software at AVEVA and an acceleration in discrete automation. These were the main trends driving double-digit growth in the U.S., with that strength in discrete coming across segments in industry and infrastructure. Canada was up mid-single digit and Mexico grew double digit against, again, a low basis of comparison.
Europe grew 6%, also a double-digit contribution from AVEVA, with growth in several countries across the region. Discrete automation performance varied by country, with Germany and U.K. among the strongest performers. Sales growth in process and hybrid remains subdued overall, despite some project execution in Spain and in France. China and East Asia delivered 8% growth. Across the region, we saw sustained double-digit growth in discrete markets. However, this was moderated by weaker process markets and some timing effects at AVEVA. China was up high single digit overall, with strong growth in discrete linked to export OEMs and an improved domestic market, partially offset by weakness in process. East Asia grew mid-single digit, where strong growth in semiconductor segment was partially offset by timing at AVEVA. South Asia and International grew 3% in the quarter, with performance contrasted by geography. India saw strong double-digit growth, mainly from discrete automation markets.
South America delivered double-digit growth across discrete, process, and AVEVA. Australia was down, impacted by renewal cycle at AVEVA, which also impacted Middle East and Africa, combined with a high basis of comparison from a project in Egypt last year. Turning to our sustainability results. We are now nine months into our 2030 roadmap, and we are seeing strong momentum with our solutions that have enabled customers to save or electrify 211 million megawatt hours at the end of Q3. Across our value chain, we continue to expand our suppliers' decarbonization program, with 135 strategic suppliers engaged so far. Regarding our expected trends for Q4, we are focused on maintaining strong execution and operational discipline to achieve our upgraded full year 2026 target in a dynamic environment. For the details, our expected trends are largely unchanged from what we have presented back in July.
However, in our geographic trends, we add China alongside U.S. and India in the countries we expect to drive growth. This is based on the strength of what we have seen over the recent quarters and which we believe is set to continue. We continue to expect strong growth in products supported by price realization from some of the ongoing actions that I spoke about earlier. Taking that thought up further, we do continue to expect to offset in value for 2026 the headwinds from raw material inflation and net tariff impact through our pricing actions. With that, Olivier, I'll hand it back over to you to take us through the upgraded financial targets.
Thank you very much, Nathan. Q3, as you can see, shows really the very strong and balanced positioning of Schneider Electric that we consider has been always our strength across the cycle. We are very pleased to see that all our businesses, all our activities are contributing to growth in our end market. As you can see, all our region, the four region, are contributing also strongly to this growth performance. And it shows also that the good balance of our business model for products, system services, and software also helped to have this strong growth acceleration.
In this context, for the second time this year, as I said in my introduction, we are upgrading our end of year target with the goal to have our revenue to grow by the end of the year between 12% and 14% organically, and to achieve an adjusted EBITA margin up 100 basis points to 120 basis points organically. Which implies an adjusted EBITA margin of around 19.7% - 19.9% by the end of the year. We are closing the formal part of the presentation to make sure, as usual, we have enough time for exchange and Q&A. On that, Antoine, hand over back to you.
Thanks, Olivier. Thanks, Nathan. Olivier, as you said, it's now time to open for the question and answer. Just as usual, to give time to as many speakers as possible, we'll ask you please to stay on the one question each rule please. And with that, operator, can we please open the line for the first question?
Certainly, sir. The first question is from Andre Kukhnin of UBS.
Yes, good morning. Thank you very much for taking my question. Can I ask please about the current cadence of the order intake to sales conversion in data centers? You have been booking now consecutive quarters of very strong growth, and I think we have got now three out of four or three there with triple digit growth. I just wonder if that is for the kind of normal timeline delivery and a lot of that will be falling into 2027, and whether you are adding sufficient capacity to deliver that kind of implied growth. If I just may clarify on something else entirely, my line kept breaking up, but was the message on pricing that you got the same pricing in value terms in Q3 as you achieved in the whole of H1? If I could squeeze that one in as well, please. Thank you.
Yeah, perfect. Thank you, Andre. I will answer the first one directly because that is an easy one. The answer is yes. What I said is that the Q3 pricing was at the level in value as it was for all of H1. Exactly, you heard that correctly. From a data center perspective, you are absolutely correct, and we have commented now some quarters in a row that we continue to see good demand there. We do not give exactly the split of order delivery and the phasing of the backlog into sales. You can also see, and Olivier already mentioned that, the upgrade across the year. Remember, we started in February at a 7%-10% guidance. We are now sitting 12%-14%, and we are confident that the end markets are still there to continue to deliver on that guidance.
That is part of the conversion you are seeing right after some quarters of triple digits growth. Again, those are a lot cadence into 2027 and 2028 at this point. You can see that we are delivering there. From a capacity perspective, I think what we have outlined in the past is that we continue to make capacity investments across our regional hubs. That includes data center, but remember, a lot of our product also goes to the other end markets, so there is investment programs there, specifically around liquid cooling. You know, we have expanded from North America at the time we bought Motivair to India, to Italy, to China. Then, of course, with partners like Foxconn, we continue to expand our capacity. So we are expanding our capacity there. That should allow us, Andre, to keep up with the triple digit demand. That is how we are operating the business today.
Great. Thank you, Nathan.
Thank you, Andre, for the question. Operator, can we please take the next one?
The next question is from James Moore of Redburn Atlantic.
Yes. Good morning, everybody. Olivier, Nathan, thanks for the time. I wondered if I could ask about your stronger, materially stronger results in China in terms of growth speed. When it comes to data centers in China, is it a market that has common characteristics to that of North America? Obviously, it's a lot smaller, but you've always been quite strong in China. Do they really prefer Chinese component suppliers? How do you find those dynamics? If you could maybe just expand a little bit about the nature of that better Chinese growth, that would be great.
Yeah, great. Thanks, James. You're right, we've now seen three quarters of good growth in China. You don't mention the numbers, but in the region in Q3 in China, we see 26%. They're now sitting at 20% from year to date. We see most of that growth, as we've mentioned now, coming in data center and semiconductor. Yes, we do see gigawatt build out there also when we talk to customers. We're a local global partner, right? We're tight in that local ecosystem. Remember the model goes a little bit different in China, so we're mostly selling into panel builders and equipment manufacturers. So it's a bit different business model than some of the other regions.
Yes, we see data center and semiconductor continuing to be robust in that market, and we're benefiting from our position with many of the hyperscalers there, who are continuing to do their build-out.
Thank you very much.
Yeah. Thank you, Nathan. Thank you, James. Operator, can you please take the next question?
Yes, sir. Just a reminder, if you could please use the handset when asking questions, if possible. The next question is from Ben Uglow of Oxcap.
Yeah. Morning, guys, and thank you for the question. I guess everybody's going to be pretty interested. I hope we don't do too much on China, but I guess it's similar to James. I'm curious about the degree of customer concentration in China. The reason why I say it is, obviously, we know what a lot of the big publicly listed cloud companies are doing. But in your press release, you sort of mentioned social media, co-location, this, that and the other. I guess what I'm curious to understand is this just Alibaba and a couple of others placing some really big orders, or is this something much broader within China? There are lots of entities in China that are not publicly listed. I guess it's really about the nature of your demand. So follow up, those customer conversations are happening right now about 2027.
A lot of the feedback we hear is pretty positive. What is your take on the customer conversations? Thank you.
Yep. So I'll start with this one, and maybe Olivier can supplement as well because he's talking and we're talking to some of the same customers in China. But I think how I would generally categorize it is the level of gigawatt and compute that China's installing is robust what we see into the order book today and what you see into the revenue that's delivered so far year to date. Of course, the China market, you have Alibaba, you have Tencent, you have some of these big players that are, of course, installing capacity. We play through, as I mentioned in answering to James, we play through the channel partners and the panel builders there. But we see robust demand for gigawatts, whether it's coming from those big players, which are putting in a lot of the gigawatts, or some of the other smaller players that you're describing.
Technology partnership is super important there. Even if you sell through the channels, technology partner with the end customer is super important. I don't know, Olivier, if you have anything else to add there, as far as what we hear from customer on the ground in China.
No, sure, Nathan, with pleasure. I understand the question of James and Ben. By the way, we were in China with the management team three weeks ago, so it was a good opportunity also to have a strong update on what is happening there. You know what is very obvious is the Chinese government, I would say, is not obsessed by the local demand and the local economy at that point of time. The biggest driver that you see really in China are one, what you have mentioned, which is AI and data center. Semiconductor, which is of course connected to some extent to data center. Let us keep in mind also that there is a strong demand for export also in industry that support really solid growth in the country.
I would say the only segment which is not super exciting at that point of time, which has been the case for the past years, is the building and the residential segment, which is again, a bit more related to the policy of the government. As Nathan has explained very well, where we have a very strong competitive advantage is we are present, of course, in electrical distribution across the entire power train. We are present in UPS. As Nathan said, we are also accelerating our investment and our manufacturing liquid cooling in China. What is the major difference, as Nathan has highlighted, we are the largest network of partner in the country.
When the demand is accelerating and to be back to your question, Ben, even if it comes from large player, those large player, they are leveraging all those big system integrator panel builder to deliver. Here it is a little bit more of a product business model. Since this is where we have the strongest part in the market, the strongest positioning, we benefit a lot from that acceleration of the market. I know you have asked, and it is a bit too early to speak about 2027, but we continue to see that demand quarter after quarter. If you remember at the beginning of the year, we were a bit more cautious in our answer because we were not too sure if it was just a short-term phenomena.
We see clearly from what we have discussed with our customer, this demand continuing over 2027, which is a good news. Everything we have heard when we were in China recently give us the confidence that this level of growth could continue at least across 2027. So it is a fairly good news. Again, China has been an historical, very strong position for Schneider Electric in the local market, in our go-to market, in our supply chain, and of course in our R&D as well, because that is a place where everything is moving in our industry, and that is a place where we continue to invest and innovate. That is a good news and that contribute very well to our Q3 performance.
That's great. Thank you very much.
Thank you, Ben.
Thank you, Ben. Thank you, Olivier. Operator, can we please take the next question?
The next question is from Ben Heelan of Bank of America.
Yeah, good morning, guys. Thank you for the question. I wanted to come back on some of the comments you made, Nathan, on price increases running at full run rate at the moment. As you think about pricing into 2027, can you just talk a little bit about how the customers are accepting those price increases? Because when you look at the data, it indicates there's probably another round of price increases that need to come through. So you're offsetting the negative headwind from cost this year. Is that something that you think we can expect into 2027 as well? Thank you.
Yeah, Ben, I won't give exactly guidance for next year, but I'm happy to answer your question. Yes, we've seen the continued inflationary pressures across the year. I think you can find those in memory and semiconductor in different areas, if not also in copper over the year. Yes, what we talked about and what we launched last year with Olivier was a pricing discipline and pricing muscle that allows you to price across the cycle. We've been proactively across the year, right? We took proactive pricing in January. That was primarily on copper and silver and other input costs. We took a second round in April as we saw the conflict in Middle East, and knowing that's going to impact oil and transport and oil derivatives such as plastics.
Now we see the next wave coming with the dimensions I already mentioned, semiconductor, memory, copper, which has also spiked again a bit over the last couple of months and quarter. Yes, the reason you do that pricing discipline, pricing muscle, is that you price over the cycle. To the extent there's inflationary pressures coming into 2027, we'll be flexing those muscles from an execution perspective. So that's how I would think about how we're positioning ourselves for 2027.
Super clear. Thank you, Nathan.
Thank you, Nathan. Thank you, Ben. Operator, can we take the next one?
Yes, the next question is from Daniela Costa of Goldman Sachs.
Hi, good morning. Thank you. Just wanted to ask you about what you are viewing in construction, maybe a little bit more into detail in how you see the puts and takes going forward. I guess a lot of macro debate in some European countries, including in France, on interest rates, and whether you think the end market is already at such a low point that there is limited downside from here, and there is a good replacement demand support, or just wondering what you are seeing in the ground in more recent weeks, in general.
Okay. No, it is a good question. We did not talk so much about the buildings end market so far. From a buildings end market perspective, of course, higher interest rates are impacting some momentum. But today in infrastructure, in government administration buildings, in technical buildings, we continue to see some momentum there, right? We have not seen any impact from higher interest rates. And you could kind of expect some of that to continue into the future. We of course monitor and watch, but we do not see any signs there. In residential, as we have mentioned in the past, we see that a bit more subdued. You would not see probably new starts coming back because of that, but there is, of course, still a good retro market there that is not always only impacted by interest rates, right?
In fact, sometimes interest rates can boost retrofit because you are not having churn in the market. From that perspective, we do not see, Daniela, anything impacting yet the demand, and we continue to follow with the buildings end market that way.
Thank you.
Okay. I think, Olivier, do you want to complement this one?
Yeah, I think it is a very important question because we have all seen that the building market was a bit. Your question was on construction, but if I extend really and I focus more on building market, was a bit subdued. There are certain number of factors that we see which are very interesting. First of all, the massive acceleration of the electrification of electrical car, of course, is very visible. Heat pump is definitely creating an opportunity for a company like Schneider to benefit really from an extended growth. We have invested in our joint venture with our Chinese partner for the European market. We see very fast growth.
This fast growth is not only the growth of the EV charger, but every time you install an EV charger, you have to extend your electrical panel, so that creates a great opportunity, great synergy in a place where, for instance, in Europe, we have a very strong market share. When you combine the need in homes and in buildings to deliver more energy efficiency, we are launching what we call EcoStruxure Foresight, which are new digital platform where we combine power and building management that deliver more energy efficiency. It's a great opportunity also here with software. Last but not the least, you've seen, and we will probably in the yearly results spend a bit more time on what we are doing in residential.
We see between the massive electrification in homes and the need for more energy efficiency in home, even if the market for new home is relatively low everywhere in Europe, we see a massive opportunity in retrofit. Every time we start to launch an initiative more focused on retrofit, we see definitely a great opportunity to accelerate the growth. All in all, yes, the market is not going to give you probably a lot of new opportunity, new construction. But when you think about retrofit, acceleration of electrification will be that give a great growth opportunity for Schneider.
Thank you, Olivier. Thank you, Daniela. Operator, I propose that we open the line for the next question.
The next question is from Alasdair Leslie of Bernstein.
Yeah. Hi, thank you. Good morning. My question is actually on prefab. It's the fourth quarter you've called out kind of prefabrication solutions as kind of the leading driver in data center. It looks like it's continuing to accelerate this quarter as well. You're also flagging European colos embracing this as sort of turnkey solution. Just hoping you could elaborate a little bit more on the dynamics. How much more competitive are the equipment lead times kind of within these kind of modular solutions compared to the competition? How big roughly is prefab now within your data center portfolio? Do you see a quicker order to revenue conversion here as well? Can we also see from an economics standpoint that from sort of it's accretive, in terms of margins for your systems business? Thank you.
Okay, sure, Alasdair. Great question, because it's a quite dynamic market in data center. Look, we've been, as Schneider, doing prefab for some time, so we're not new in that space. Really the idea with prefab is to have the offer that the customer needs for their application, right? So whether that's time to start the project or get construction or whether that's a lack of labor on site, right? Because there's many different dimensions why you would bring a prefab solution. Schneider, like I said, has been doing that for a long time. Remember, most of those prefab applications are incorporating different dimensions of the powertrain. So we use Schneider products into that prefab. We've been installing capacity. We talked about the partnership with Foxconn there. We continue to install capacity both internally and externally to deliver prefab.
From a time to market perspective, of course, this is why we operate and design the architecture with the Especially when you're talking at the top of the pyramid with the hyperscalers and colo. We're designing the full architecture early in their development cycle, so we have pretty good visibility and can deliver both prefab and equipment on site as required inside their normal construction time frames, right? So, it allows certainly once you're on site, to be much faster to install, to commission, with different level of labor on site. But we're really positioned to deliver across that whole ecosystem and delivery model of data center into an installation for the customer. So, that's how we a bit manage the business.
As we said, I can say it there, we don't give the exact split of the prefab business, but we've seen, as I pointed out, extremely strong growth there. I think you can see that in the time and the speed to delivering compute, and that's a requirement today, certainly from the hyperscalers and from the AI companies, is how fast you can have compute installed. That's why we've seen certainly the strong growth momentum there, Alasdair.
Thank you, Nathan. Thank you, Alasdair. Operator, can we please take the next question?
Yes, sir. The next question is from Max Yates of Morgan Stanley.
Hi. Thank you.
Hello, Max.
Hi, good morning. Could you just give us a reminder of your data center exposure? I guess, given all of the news flow in the last, I guess sort of week or so around some of the bond yields, could you maybe sort of break out for us what is kind of the big four or five hyperscalers? How much exposure do you have to neoclouds and companies like CoreWeave? Then, what would be the kind of remainder? Just as we sit here today, your orders I think will probably get to well in excess of 30%, but just how would those split across hyperscalers, neoclouds, and other these days? Thank you.
Yep. Thanks for the question, Max. Yes, as you remind us, the exposure to data center last year at the end of the year was 30% on data center and networks. The direct exposure on data center was about four points less than that. You are right. With triple digits orders now three out of the last four quarters, certainly that exposure when we report at the end of the year, you would expect to see an increase there in the concentration in data center. I think we have discussed a few times together with Olivier , our unique market position there is that we spend a lot of time with the top of the pyramid. So that is really the hyperscalers and colos designing their architecture for the futures.
So far we have not had a question on 800 V or the technology moves, but that is part of that privileged position, right? To be in the seat as a technology partner, designing the technology. Inside of our order book today, we still are performing well there. In fact, the way we look at market share in those customers is your share of wallet in the customer. We see ourselves growing in that set of customer base extremely strongly. Now, we do not break down exactly the impact or the split of hyperscaler, colo, neocloud, et cetera. But when we have opportunity across any of those customer bases, we feel like we have a strong competitive position and credibility and lead position to deliver.
But again, our focus today and where we are winning for sure, is on those most sophisticated customers where you bring the whole architecture starting from design, to build, to operate, and then maintaining the data center.
But simplistically, we're not going to wake up tomorrow and find out that you've got outsized exposure to neoclouds effectively. You should be representative of the broader market. Would that be a fair conclusion? There's no reason to assume that you should have outsized exposure to one group within that.
Yeah, I would say that's fair, Max. I'm not going to give you more precise, but that's from a completeness perspective, that's probably fair. I don't know. Olivier, do you want to add anything there? You're talking to a lot of customers as well.
No, sure. The only thing I can say, because indeed I am in touch directly with all our largest customer in data center. If you remember what we've said quarter after quarter, we've been also extremely attentive and selective for us, because we know that there is a massive demand everywhere in the world. It was first in North America, now it's rest of the world. But we want really to work with those company who have really a strong interest in technology, in co-design, who are ready to plan, who have strong financial capabilities. So I don't want to go more in detail because we don't disclose by category, but we are extremely careful to select those company that will be there in the long term, and willingness really to build more strategic partnership with Schneider Electric.
So I think this strong selectivity has helped us quarter after quarter, to deliver and to avoid any surprise. So that's very important in our strategy as well.
Okay. That's great. Thank you.
Thank you. Thank you, Olivier. Thank you, Nathan. Operator, I think that we may have time for one more question, if we can open the line, please.
Certainly, sir. The next question is from Delphine Brault of ODDO BHF .
Yes, thank you. Good morning. Thanks for taking my question. Maybe coming back quickly on your guidance. The new range for organic sales growth of 12%-14% implies a slowdown in Q4 mechanically. What is driving this? Is it only a cautious approach, or is it related to the basis of comparison?
Hello, Delphine. Yes, thank you for that question. Yes, of course, the upgraded guidance today raises now both top and bottom line. It is the second time we have raised, but we have also narrowed the range, which it should be a demonstration of our increased confidence and visibility in delivering the full year. Of course, we take a wide range of scenarios into account. Expected trends, as I mentioned earlier, we expect to still be in a pretty dynamic environment. We have discussed that broad-based demand across all those end markets and geographies. The only thing I would remind you, and you kind of lead me there with the last part of your question, the baseline was the strongest quarter in 2025. In fact, it is the top or the third strongest quarter we have had in Schneider history. So there is some dimensions there.
Again, we take multiple scenarios and we are confident to have raised now the guidance from the beginning of the year with the top range of 10% now to the top range of 14%.
Thank you.
Thank you, Delphine. Thank you, Nathan. Thank you, Olivier. Look, I think that with that, we are coming to the end of our presentation today. On my side, let me again thank you for your participation, but more than that, for your continued interest in Schneider Electric. As usual, the IR team of Schneider Electric will be on the road during Q4 for conferences, for road shows. So that will be the opportunity for us to dive on some of the topics and answer on all of the questions that we unfortunately did not have the time to take today. With that, I wish you a good end of the day and talk to you very soon. Thank you. Bye-bye.
Thank you very much. Bye-bye.
Ladies and gentlemen, thank you for joining. The conference is now over and you may disconnect your devices.