Revenue for the three months ended March rose 11.2% on an organic basis to 9.77 billion euros. This result came in slightly above the consensus estimate of 9.76 billion euros.

Momentum was notably driven by North America (+14.4%), China, and East Asia (+14.2%).

However, performance was impacted by an unfavorable currency effect of 623 million euros, representing a 6.7% negative hit to sales. For the full year 2024, this effect could represent a revenue shortfall of between 750 and 850 million euros and weigh on the adjusted EBITA margin by approximately 10 basis points.

By business line, growth was led by systems (+16%), driven by data centers, while products grew by 9% and the software and services segment also recorded 9% growth.

'Results in line with expectations', noted Jefferies, which maintains a buy rating on the stock.

'Q1 marks a good start to the year, but with ABB recently raising its annual targets and some investors hoping for the same from Schneider Electric, the release could be perceived as a slight relative disappointment', observed Oddo BHF, which has an outperform rating on the shares.

The group confirmed its 2024 targets and indicated that profitability drivers will remain aligned with those presented during its recent investor day. It anticipates a positive net price effect, intended to offset rising raw material costs and tariffs, with a progressive ramp-up throughout the year.

Schneider Electric also remains attentive to the geopolitical environment, estimating that the South Asia region and certain international activities could be affected as early as the second quarter by disruptions and uncertainties related to the situation in the Middle East.