Schneider Electric SE (SBGSY) AI Stock Analysis

Schneider Electric SE

(Other OTC:SBGSY)

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Rating:71Outperform

Price Target:$61.00▲(12.94% Upside)

Action:reiterated

Date:10/31/26

The score is supported primarily by strong financial quality (improving profitability and reliable free cash flow) and a notably upbeat earnings call with upgraded full-year guidance and record H1 performance. These positives are tempered by weak technicals (price below major moving averages with negative MACD) and a valuation that looks demanding on earnings (P/E ~29.4) despite a modest dividend yield.

Positive Factors

Broad-based revenue accelerationStrong, broad-based growth across both major businesses indicates renewed demand rather than reliance on a single product line or region. The upgraded 10–13% full-year organic revenue target also supports continued momentum and provides a stronger foundation for operating leverage over the next several quarters.

Negative Factors

Recent revenue growth slowdownThe recent slowdown shows that Schneider’s longer-term growth trajectory is not uniformly strong across periods, despite the latest rebound. If weaker end-market conditions persist in parts of the portfolio, softer revenue could limit operating leverage and make the upgraded outlook more dependent on execution and favorable demand recovery.

Schneider Electric SE (SBGSY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $154.87B
Dividend Yield: 1.84%
Average Volume (3M): 264.69K
Price to Earnings (P/E): 28.2
Beta (1Y): 1.22
Revenue Growth: 14.71%
EPS Growth: 18.00%
Country: US
Employees: 173,626
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Machinery

Schneider Electric SE Business Overview & Revenue Model

Company Description

Schneider Electric S.E. delivers comprehensive digital solutions for energy management and industrial automation to a global client base. The company operates through two primary divisions: Energy Management and Industrial Automation. Its extensive p...

How the Company Makes Money

Schneider Electric primarily makes money by selling energy management and industrial automation solutions through a mix of product sales, software, and services to commercial, industrial, and residential-related channels. A major revenue stream comes...

Schneider Electric SE Earnings Call Summary

Earnings Call Date:Jul 29, 2026(Q2-2026)|% Change Since:-7.60%|Next Earnings Date:Feb 17, 2027

Earnings Call SentimentPositive

The call conveyed a strongly positive operational and financial performance for H1 2026: record revenues and cash flow, meaningful margin expansion (+120 bps organic), accelerated pricing and productivity execution, an upgraded full‑year outlook, and strategic investments (Cognite, AiDASH). There are ongoing headwinds — notable FX translation losses (≈EUR 750m), raw material/tariff pressure partially offsetting gross margin gains, restructuring and impairment charges, regional geopolitical volatility (Middle East) and work to continue on Industrial Automation margin recovery — but management presented clear mitigation actions (pricing, productivity, capacity partnerships) and upgraded guidance, indicating confidence in sustaining momentum.

Positive Updates

Record First-Half Revenues

H1 revenues reached EUR 21.2 billion (record for H1) with organic sales growth of +14% year-over-year and Q2 revenues up +16.5% organic to EUR 11.5 billion; broad-based contribution from all regions (North America, China/East Asia and India notably strong).

Negative Updates

FX and Translation Headwinds

Currency translation negatively impacted H1 revenues by close to EUR 750 million (mainly weaker USD and INR); management expects full‑year FX revenue headwind of about EUR ‑450m to ‑500m if rates persist.

Company Guidance

Schneider upgraded its full‑year targets: organic revenue growth is now guided to 10–13% (vs. prior 7–10%), organic adjusted EBITA growth to roughly 14–19%, and adjusted EBITA margin expansion of 70–100 basis points by year‑end; FX is expected to be a €450–€500m revenue headwind for the year with negligible margin impact, cash conversion is forecast at ~100% for FY, restructuring charges are expected to peak at ~€450m in 2026, H1 share buybacks totaled €250m, and management noted strong H1 operational supports (€280m of product pricing realized, ~€535m of industrial productivity and €1.6bn free cash flow) that underpin the revised guidance.

Schneider Electric SE Financial Statement Overview

Summary

Solid industrial-quality fundamentals with improving operating profitability (EBIT margin rising to ~17.5% by 2025) and consistently strong free cash flow conversion (~82.5% of net income in 2025). Offsetting factors are slowing/negative recent revenue growth (2025 -1.9%) and a notable leverage increase (debt-to-equity up to ~0.73 in 2025), which reduces flexibility if the top line stays soft.

Income Statement

78Positive

Balance Sheet

70Positive

Cash Flow

81Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	42.46B	40.15B	38.15B	35.90B	34.18B	28.91B
Gross Profit	17.51B	16.89B	16.27B	14.62B	13.40B	11.35B
EBITDA	8.80B	8.37B	8.06B	7.19B	6.36B	5.95B
Net Income	4.79B	4.16B	4.27B	4.00B	3.48B	3.20B
Balance Sheet
Total Assets	65.24B	62.48B	65.94B	58.90B	58.37B	54.55B
Cash, Cash Equivalents and Short-Term Investments	4.52B	4.63B	6.89B	4.70B	3.99B	2.63B
Total Debt	19.19B	17.74B	16.31B	13.93B	11.73B	10.84B
Total Liabilities	40.51B	38.03B	34.66B	31.73B	32.27B	26.44B
Stockholders Equity	24.45B	24.19B	30.49B	26.46B	25.44B	24.44B
Cash Flow
Free Cash Flow	6.23B	4.86B	4.63B	4.54B	3.26B	2.74B
Operating Cash Flow	7.32B	5.89B	5.58B	5.91B	4.35B	3.62B
Investing Cash Flow	-7.17B	-7.93B	-1.99B	-1.05B	-1.41B	-5.17B
Financing Cash Flow	279.26M	293.92M	-1.62B	-3.82B	-1.45B	-3.09B

Schneider Electric SE Technical Analysis

Technical Analysis SentimentNegative

Last Price54.01

Price Trends

50DMA62.85Negative

100DMA63.66Negative

200DMA61.69Negative

Market Momentum

MACD-2.79Negative

RSI34.59Neutral

STOCH52.68Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBGSY, the sentiment is Negative. The current price of 54.01 is below the 20-day moving average (MA) of 56.46, below the 50-day MA of 62.85, and below the 200-day MA of 61.69, indicating a bearish trend. The MACD of -2.79 indicates Negative momentum. The RSI at 34.59 is Neutral, neither overbought nor oversold. The STOCH value of 52.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SBGSY.

Schneider Electric SE Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

SBGSY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMR	76Outperform	$92.00B	35.91	12.69%	1.35%	4.82%	-1.66%
GEV	76Outperform	$227.06B	22.31	85.62%	0.23%	16.82%	518.92%
TT	71Outperform	$89.75B	28.83	36.01%	1.00%	10.34%	8.80%
SBGSY	71Outperform	$156.42B	28.21	19.47%	1.84%	14.71%	18.00%
ROK	68Neutral	$48.44B	40.80	33.32%	1.27%	11.27%	25.32%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CARR	61Neutral	$43.88B	-24.30	-14.28%	1.79%	3.33%	-187.15%

* Industrials Sector Average

Performance Comparison

SBGSY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SBGSY	Schneider Electric	53.02	-2.71	-4.86%
EMR	Emerson Electric	164.94	27.08	19.64%
TT	Trane Technologies Plc	410.00	-32.15	-7.27%
ROK	Rockwell Automation	436.20	76.47	21.26%
CARR	Carrier Global Corp.	53.63	-3.33	-5.84%
GEV	GE Vernova Inc.	857.87	278.02	47.95%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 30, 2026

Schneider Electric SE AI Stock Analysis