Technical indicators and analyst targets
The 1.08% advance compared with gains of 1.18% for the CAC 40 and 1.22% for the SBF 120 in Idéal Investisseur's market report. Schneider Electric ranked 15th among the CAC 40's 40 constituents. Peer Legrand gained 1.92%, following a 5.59% decline over the preceding month.
Despite the rebound, Schneider Electric traded 2.55% below its 20-day moving average and 10.10% below its 50-day average. Its 200-day average was 7.30% above the share price. The relative strength index, or RSI, was neutral at 41, while Idéal Investisseur identified €231.40 as a support level if the stock fell further. France's 10-year OAT yield stood at 4.89%.
Two recent analyst targets remained well above the share price. CIC Market Solutions retained a buy rating and a €325 target on October 28. A day earlier, Jefferies raised its target from €323 to €329 while keeping its buy rating. The targets implied upside of about 31% and 32%, respectively.
Revenue growth and a raised annual target
The financial calendar cited by Idéal Investisseur listed third-quarter 2026 revenue for October 29. For the first nine months, the publication reported revenue of €32.686 billion, up 12.5%.
Schneider Electric's quarterly revenue figures showed a record high, with organic growth of 16.9% and reported growth of 17.9%. Energy Management contributed €9.615 billion, an organic increase of 18.8%, while Industrial Automation generated €1.845 billion, up 8.1% organically.
Alongside the results, Schneider Electric raised its 2026 target for organic growth in adjusted EBITA to 18%–21%. The target assumes organic revenue growth of 12%–14% and an organic improvement of 100–120 basis points in the adjusted EBITA margin, putting that margin at approximately 19.7%–19.9%.
PTC acquisition terms and expected benefits
The PTC transaction, announced in early October, remains part of the backdrop to the stock's monthly decline. Schneider Electric signed the definitive agreement on October 5, offering $205 a share in cash. The offer values PTC's equity at approximately $22.6 billion (€20.1 billion), with an implied enterprise value of $23.7 billion (€21.1 billion).
The offer represents a premium of 42.3% to PTC's last closing price and 46.1% to its volume-weighted average price over the prior 30 trading days. Schneider Electric anticipates closing by the third quarter of 2027, subject to approval from PTC shareholders and regulators.
Schneider Electric projects annual cost savings of €250 million at the full run rate by the third year, along with approximately €800 million in revenue synergies. It expects the acquisition to lift adjusted earnings per share, before purchase price allocation, by a low-single-digit percentage in the first year of full consolidation. Including the full run-rate synergies, the expected increase is in the mid-to-high single digits.
Equity issuance, bonds and credit ratings
Schneider Electric said a fully committed bridge facility from Morgan Stanley and Société Générale secures the approximately €22 billion in total cash consideration for PTC. Its funding plan calls for roughly €5 billion to €6 billion in equity issuance and €16 billion to €17 billion in new debt.
On October 20, the company completed a €6 billion capital increase by placing 25 million new ordinary shares at €240 each. The shares represented approximately 4.32% of its pre-issue share capital. The subscription price was about 4.99% below the €252.60 closing price before the launch, and settlement was expected on October 22.
The company has also raised €6 billion through bonds maturing between 2028 and 2046, completing the bond component described by Idéal Investisseur.
Following the PTC announcement, S&P Global Ratings and Moody's reaffirmed Schneider Electric's category-A credit ratings on October 6. S&P maintained A / A-1 ratings with a stable outlook, while Moody's maintained A2 with a stable outlook.
Shelly offer and buyback plans
Schneider Electric also agreed on September 24 to acquire Shelly Group, a provider of Internet of Things and smart-building solutions. The approximately €1.2 billion transaction takes the form of a voluntary all-cash tender offer for all Shelly shares. Completion requires ownership of more than 95% of the capital and is expected by the first quarter of 2027.
Under its €600 million share buyback program, Schneider Electric had purchased 1.8 million shares for €497 million as of October 12, at an average price of €269 each. The company expects to pause repurchases in 2027 and 2028 before accelerating them as part of a €2.5 billion to €3.5 billion program running through 2030.
This article is for informational purposes only and is not investment advice or a recommendation to buy or sell a financial asset.
