Schneider Electric buys PTC for $22.6 billion as it eyes industrial AI, energy data flywheel

Schneider Electric's $22.6 billion purchase of PTC gives the company an energy, industrial AI and intelligence stack that will expand its use cases into energy storage, automation, industrial AI and data centers.

PTC will also transform Schneider Energy via a much larger software business. PTC's platform is used for industrial product design, engineering and data management. During its third quarter earnings report, PTC projected fiscal 2026 revenue of $2.69 billion to $2.75 billion with earnings per share of $7.21 to $9.70. PTC projected free cash flow of $850 million for fiscal 2026.

Those results will increase Schneider Electric's software market by three times. PTC is paying a 42.3% premium for PTC from Friday's closing price, or $205 per share.

Schneider Electric's plan with PTC is to create a unified platform that includes context, AI and data across products and machines and processes and energy systems. Schneider Electric's progression into software has been accelerated via acquisitions in recent years.

According to Schneider Electric the plan is create a digital flywheel that can drive AI adoption in the industrial and energy sectors. Olivier Blum, CEO of Schneider Electric said the PTC purchase is "an important step forward in our ambition to lead the new era of energy and industrial intelligence" that bridges the physical and digital worlds.

Neil Barua, CEO of PTC, said his company will get scale to expand and pursue its intelligent product lifecycle vision.

The plan

Schneider Electric is looking to content in the industrial and energy sectors as AI gets embedded throughout physical products, machines, processes and energy systems.

PTC has more than 30,000 customers globally and can enhance Schneider Electric's industrial AI data foundation. Schneider also recently announced that it will acquire Cognite to help build out its data fabric.

According to Schneider Electric, PTC will do the following:

• Create a scaled and open industrial software and AI business.
• Diversify Schneider Electric since software will be about 24% of total revenue with PTC.
• Give Schneider Electric the ability to bridge physical and digital worlds in the design cycle.
• Establish a "unified digital thread" across products and machines and processes and energy systems.

Schneider Electric said it expects to save about €250 million by year three after the deal closes and generate about €800 million in revenue.