Earnings call transcript: Schneider Electric Infrastructure misses Q1 2026 estimates

Schneider Electric Infrastructure reported lower-than-expected earnings for the first quarter of fiscal 2027, missing analyst forecasts. Earnings per share fell to $2.50, below the $3.11 estimate, while revenue came in at $8.4 billion, $210 million less than the $8.61 billion expected. The stock declined 11.43%, closing at $1,212.70, a drop from its previous close of $1,369.20.

The company's Q1 was a mixed quarter, with strong order intake but weaker profitability. Revenue grew 5% year over year, driven by record order intake in power infrastructure, data centers, semiconductors, and renewable energy. However, margin pressure and negative operating leverage weighed on results, with EBIT at INR 32 crore, lower than a year earlier.

The company's business mix is shifting toward emerging segments, but this also brings more complex execution and longer project cycles. Gross margins were flat sequentially but lower year over year due to commodity inflation, supply chain disruptions, fixed-price orders, and a weaker rupee. Management started pricing actions to counteract the margin squeeze, which they expect to take time to reflect in results.

Analysts focused on the company's exposure to different end markets and its backlog protection through price variation clauses. Management remains confident about future growth, citing a strong backlog, record order intake, and pricing actions already underway.