Legrand is shining on the stock market this Thursday, bolstered by its quarterly performance. 'Solid results, but driven almost exclusively by American data centers', summarized Stifel, which holds a neutral rating on the stock.

In the first quarter, group revenue reached 2.54 billion euros, an 11.4% increase, surpassing the consensus target of 2.47 billion euros. The North and Central America region, which accounts for nearly half of the electrical infrastructure specialist's revenue, posted growth of 25.8% at constant scope and exchange rates. In the United States, sales surged by 29.1%.

'Geographically, Europe remains the main weak point of the quarter with sales down 1.2% and negative organic growth of 2.8%, reflecting a still degraded building market', highlighted AlphaValue. Driven by the rise of artificial intelligence and digital infrastructure needs, the data center segment could represent approximately 30% of Legrand's revenue by 2026, compared to 26% in 2025, according to the CEO.

Adjusted operating profit stood at 524.7 million euros, up 11.5%, while market expectations were set at 519 million euros. For its part, net income reached 335 million euros, up 14.2%, in line with forecasts.

'Legrand published very solid organic growth figures this morning, but with a margin that surprises by the lack of operating leverage', noted AlphaValue, which maintains its neutral recommendation. 'Regarding the adjusted EBIT margin, it remained stable at 20.7% in Q1 2026 and even declined by 20 bps when excluding the positive impact of acquisitions'.

Investor Day on September 29 in Singapore

In a statement, Legrand CEO Benoît Coquart hailed 'sustained' business growth, fueled by both the data center boom and the group's acquisition strategy.

Since the beginning of the year, Legrand has announced four targeted acquisitions in the data center and energy transition sectors, two markets considered major growth drivers.

The group also confirmed its 2026 targets. It still aims for organic sales growth of between 4% and 7%, as well as an adjusted operating margin, after acquisitions, expected between 20.5% and 21%.

Alongside the publication of its results, Legrand announced the organization of an investor day in Singapore on September 29. The group will present an update of its 2030 roadmap, with a particular focus on its data center strategy.

'Regarding the Middle East, the group's direct exposure remains limited to less than 2% of revenue. No significant impact has been observed at this stage on sales, even if geopolitical tensions are increasing pressure on certain costs, notably transport and raw materials', noted Jefferies, which has a buy rating on the stock.