Following the publication of its financial results on Thursday, January 12, 2026, Legrand’s stock opened higher and was up more than 5% at the start of the European session. Should you invest in the stock market or trade Legrand stock in 2026 after the publication of its results? What are the growth drivers of Legrand? The risks of its business model? ActivTrades offers you an analysis of Legrand stock that can be included in the best Equity Savings Plans and the best stock accounts.
Who is Legrand?
A worldwide reference in electrical solutions and digital networks, Legrand distributes 300,000 references in 170 countries through a direct presence in 90 countries. Legrand’s activities focus on three main sectors: non-residential, residential, and data centers. The group generates revenue fairly evenly between Europe (39%) and North and Central America (42%), with the rest of the world accounting for the remaining 19%.
Legrand bets on data centers to support its growth in the coming years
In an economic context marked by the slowdown of the traditional building sector, Legrand has managed to stand out thanks to the historic performance of its digital infrastructure division.
In 2025, the massive rise of data centers became the group’s main growth driver, offsetting the softness in other market segments. This dynamic allowed the French supplier of electrical infrastructures to record an overall revenue of €9.48 billion, up 9.6%, surpassing analysts’ expectations who had anticipated €9.46 billion.
The strategic importance of data centers is directly reflected in the company’s accounts: this sector now represents 26% of total revenue, generating €2.4 billion on its own. Legrand’s Chief Executive Benoît Coquart notes that this surge in demand was particularly driven by the American market, which is experiencing unprecedented expansion. Although the European market shows more modest growth, the group expects this global trend to continue in 2026, 2027, and 2028.
Legrand’s outlook for upcoming fiscal years relies on organic growth in the data center category, supported by double-digit growth, though it may stabilize after the substantial levels observed in 2025.
Legrand’s financial strength is also confirmed by the progression of its profitability indicators. Net income reached €1.24 billion, up from €1.17 billion the previous year, while adjusted operating profit rose by 10.5% to €1.96 billion. With an operating margin of 20.7%, the group demonstrates its ability to effectively integrate acquisitions while maintaining solid profitability. This financial health enables the company to propose a dividend of €2.38 per share for 2025, an 8.2% increase for shareholders.
Armed with these results and the prospects offered by the digital transition, Legrand has raised its mid-term ambitions.
The Legrand group now projects revenue of nearly €15 billion by 2030, placing it in the upper range of its initial targets. To support this vision, the company also anticipates an average adjusted operating margin above 20% and confirms that data centers are not merely a temporary growth trigger but a central pillar of its business model.
Stock Price: What is Legrand stock’s price (LR) on the market?
Legrand and Data Centers: What are Legrand’s prospects in the data center sector?
A comprehensive offering for data centers
Legrand has gradually established itself as a reference player in the data center segment through an offering that covers all electrical and digital infrastructure needs, from “clean rooms” (servers and racks) to “grey rooms” (technical equipment and electrical distribution).
The group addresses the sector’s structural challenges:
- energy efficiency,
- power and service continuity,
- installation safety,
- modularity and scalability of infrastructures.
In an environment marked by the rapid rise of Artificial Intelligence (AI), the ability to anticipate expansion needs and to increase capacity through modular architectures has become central. Operators must be able to densify racks, adjust electrical power, and modernize cooling systems without interrupting their activities. Legrand positions its offering precisely on these issues.
Concretely, the group offers solutions suited to data centers of all sizes:
- highly reliable electrical distribution systems,
- busbars, busways and PDU (Power Distribution Units),
- optimized cooling solutions,
- measurement and monitoring systems enabling real-time tracking of consumption and identification of energy optimization levers,
- equipment ensuring power continuity according to the required redundancy level of the building.
These solutions aim to reduce power losses, improve overall energy efficiency, and secure continuous operation of the installations. The proposed equipment also enables interventions without service interruptions, a key element for data centers.
Legrand also integrates devices protecting against physical intrusions as well as against internal risks (fire, water leaks) or external risks (flood, explosion), strengthening the resilience of the infrastructures.
To consolidate this positioning, the group has pursued targeted acquisitions in recent years. This strategy has allowed it to broaden its technological portfolio and its international presence in a structurally favorable market through specialized companies such as Starline, Raritan, Minkels, USystems and Server Technology among others.
The scale of investments announced by the tech giants illustrates the sector’s potential. On February 11, 2025, Meta announced the construction of a data center with a $10 billion investment. This project should eventually be capable of delivering 1 gigawatt of power, to support Meta’s AI ambitions. This type of project represents a direct growth lever for providers of electrical infrastructure and distribution solutions like Legrand.
Significant growth in Legrand’s revenue from data centers
The data center segment has now become one of Legrand’s primary growth engines. The weight of this activity in the group’s total revenue continues to rise:
- 15% of revenue in 2023,
- 20% in 2024,
- 24% in 2025.
This rise confirms the progressive integration of data center solutions at the heart of Legrand’s product mix. In 2024, about half of Legrand’s acquisitions were in the data center field.
In 2025, the group continued this policy with the acquisition of five data center sector companies:
- Computer Room Solutions (CRS) in Australia,
- Linkk Busway Systems in Asia,
- Amperio Project in Switzerland,
- Quitérios in Portugal,
- Avtron Power Solutions in the United States.
As of February 12, 2025, Legrand also announced two new data center acquisitions: Kratos Industries in the United States and Gree 4T in Brazil. These operations strengthen the group’s technological offering while expanding its geographic presence in strategic markets.
The data center market boosted by artificial intelligence
The global data center market is experiencing a historic acceleration, largely fueled by the widespread deployment of artificial intelligence.
In 2025, investment transactions related to data centers reached a record $61 billion. This dynamic reflects rising demand for infrastructures capable of supporting AI-related workloads, significantly more energy-intensive and demanding than traditional cloud uses.
On the energy side, the figures illustrate the scale of the transformation:
- The information and communications technology sector accounts for about 9% of global electricity consumption.
- Data centers account for 1% to 1.3%, while AI accounts for less than 0.2%.
Until 2019, data center electricity consumption remained broadly stable, around 200 TWh per year. The dynamic then accelerated markedly: it reached about 460 TWh in 2022 (including cryptocurrencies), marking a regime shift.
According to the International Energy Agency (IEA), data centers’ electricity consumption was estimated at about 415 TWh in 2024, or nearly 1.5% of global electricity consumption. Over the past five years, it has grown by an average of about 12% per year.
In its central scenario, the IEA anticipates almost doubling this consumption by 2030, to around 945 TWh. Between 2024 and 2030, data center electricity demand would rise by about 15% per year, a pace more than four times faster than the overall electricity consumption of other sectors. The consumption of accelerated servers—primarily linked to AI deployment—would grow by about 30% per year in this scenario.
Goldman Sachs Research, for its part, foresees a 165% increase in global electricity demand from data centers by 2030 relative to 2023 levels. Installed capacity would reach around 92 GW by 2027, with a compound annual growth rate (CAGR) of 17% between 2025 and 2028.
Meanwhile, the AI-dedicated data center market shows an equally dynamic trajectory. Fortune Business Insights estimates this market at $17.73 billion in 2025 and could rise to $133.51 billion by 2034, a CAGR of 25.8%. AI-related storage capacity demand is expected to grow from 10.1 zettabytes in 2023 to 21.0 zettabytes by 2027 (CAGR of 18.5%).
This rise in AI architectures greatly increases energy density per rack, generating new needs in electrical distribution, monitoring, and cooling — precisely Legrand’s areas of expertise. In this context, the group benefits from a solid strategic positioning, combining technical expertise, an expanded portfolio, global presence, and a targeted acquisitions policy. The data center segment thus appears as a mid- to long-term growth driver.
Digital transition and new urban living patterns
The growth of Legrand’s data center activities fits into broader structural megatrends.
The digital transformation of companies, the widespread adoption of the cloud, the rise of generative AI, and the proliferation of connected devices increase demand for robust digital infrastructures. At the same time, the shift toward connected urban living (smart buildings, electric mobility, digital services) strengthens demand for power supply and intelligent energy management solutions.
Legrand positions itself at the intersection of these dynamics, offering electrical and digital infrastructures tailored to data centers, but also to connected commercial and residential buildings.
Thus, the development of data centers is not an isolated segment, but part of a broader strategy oriented toward energy and digital transition. This strategic coherence strengthens the group’s visibility on its long-term growth prospects.
How far can Legrand’s stock (LR) rise in 2026? ActivTrades technical analysis
A member of the CAC 40 index on Euronext Paris, Legrand’s stock is also included in other benchmark indices such as the MSCI World. Since its initial public offering (IPO) on April 6, 2006 at €19.75, Legrand’s share has risen by more than 530%. This trajectory includes a low of €10.20 during the 2008 crisis and an intraday high above €153 on February 12, 2026, surpassing the previous record above €150 reached on November 3, 2025.
After a volatile year in 2024, Legrand’s stock ended little changed. In 2025, the stock gained more than 35%, and it has already gained more than 20% since January 1, 2026.
Legrand’s stock price today trades at its all-time high, well above the Ichimoku cloud, with the RSI indicator rising and in overbought territory. Investor and company optimism about the growth potential of data centers could support Legrand’s stock to new highs. On the other hand, support levels to watch for Legrand would be in the psychological area around €150, then at €144 and €139.
Technical chart analysis of Legrand’s stock price in 2026
Should you invest in Legrand stock in early 2026? ActivTrades view
ActivTrades believes that Legrand stock presents an attractive investment profile in 2026, driven by a deep strategic transformation that is progressively repositioning the group toward critical digital infrastructures.
The strategic acceleration of Legrand in digital infrastructures is reflected in data centers now accounting for 26% of revenue, a dramatic 73% increase in this segment’s contribution to revenue compared with 2023. This performance marks the culmination of a successful transformation, turning the historic electrical equipment maker into a key player on one of the decade’s most promising markets.
The rise of artificial intelligence constitutes the main bullish catalyst for this sector for Legrand. The group benefits from a unique positioning, combining a complete offering covering the entire value chain, a portfolio of well-known specialized brands, and a targeted acquisition strategy that continually strengthens its technological leadership.
The 2025 results already reflect this reality, and management expects growth to accelerate by more than 30% over the next two years, confirming its confidence in the group’s trajectory. For shareholders, this performance also translates into a dividend that rises steadily and significantly over the last seven years (from €1.34 per share in 2019 to €2.38 per share in 2025), a gain of 77.61%.
Nevertheless, this optimistic view must be balanced by considering significant risk factors, the main one being the high concentration of growth forecasts on revenue growth linked to data centers. While this segment is currently the growth engine for Legrand, it also exposes the group to a normalization risk after the boom period.
The persistent softness of the residential and commercial sector constitutes the second major brake. Despite the rising prominence of data centers, Legrand remains exposed to the construction cycle. Indeed, the construction market is expected to grow slowly in 2026. Uncertainty about interest rate movements in several key geographic regions continues to weigh on demand for new construction and renovation.
This duality creates a mixed situation: on one hand, data center activity is expanding rapidly, and on the other, traditional segments are stagnant, limiting the group’s overall growth potential.
In conclusion, ActivTrades takes a somewhat bullish stance on Legrand stock for 2026, while remaining vigilant about valuation levels. Legrand shares, trading at all-time highs above €151, could capture a large portion of the data center growth potential.
For long-term investors seeking exposure to megatrends (AI, digital transition, electrification), Legrand remains a quality stock with solid fundamentals and a resilient business model. The preferred strategy would be to invest gradually through recurring purchases rather than a single lump sum, to smooth the entry price in a context of high valuation and potential normalization of data center growth.
Investors should closely monitor upcoming quarters for signs of a slowdown in the data center segment or, conversely, signals of a rebound in residential construction that would diversify growth drivers. In any case, Legrand seems to deserve a place in a diversified portfolio of European equities.
19 reasons to buy Legrand stock on the stock market in 2026
- Globally renowned expertise for 160 years with a brand image synonymous with quality and reliability in electrical infrastructures
- Dense worldwide distribution network and long-standing relationships with customers creating strong barriers to entry for new entrants
- Data centers now generate 26% of revenue in 2025 versus only 15% in 2023, confirming their role as the main growth engine
- Exclusive exposure to a structural trend (energy and digital transition) whose dynamics far surpass those of the traditional construction market (53% of revenue in essential infrastructures vs 47% in the energy and digital transition in 2025)
- Complete and integrated offering covering the entire data center value chain (power, cooling, distribution, racks) through a portfolio of renowned specialized brands (Starline, Raritan, Minkels, Server Technology…)
- AI boom requiring data center infrastructures that are increasingly powerful and numerous
- Energy transition and accelerated electrification of buildings (electric vehicle charging points, energy efficiency solutions)
- Growing digitalization and deployment of connected smart buildings
- Expansion of edge computing to meet the low-latency needs of AI applications and real-time processing
- Sustained acquisition policy in high-growth sectors, notably data centers, reinforcing the group’s technological leadership
- Successful integrations enabling expanded international geographic presence and broader solution offerings
- Disciplined acquisitions generating tangible operational and commercial synergies
- Mastery of operations in unstable and volatile contexts (US tariffs)
- Strong free cash flow
- Promising growth ambition by 2030 driven by megatrends
- Dividend rising steadily, demonstrating the robustness of cash flow generation
- Reliable and growing shareholder remuneration (French dividend aristocrats) adding to capital appreciation potential
- Expected acceleration of the group’s activity in 2026 and 2027 (+30% over two years)
- Raised 2026 growth targets signaling management’s confidence in Legrand’s commercial dynamics
11 reasons to avoid investing in Legrand stock in 2026
- Competition with global industrial giants with strong financial resources (Siemens, Schneider Electric, ABB)
- Dependence on the continuation of the exceptional growth of data centers, which now represent 26% of revenue
- Emerging signs of normalization in growth dynamics after a boom period driven by AI
- Risk of a sharp adjustment in prospects if the massive AI infrastructure investment cycle slows or if overcapacity appears
- Exposure to the construction sector which is expected to grow weakly or not at all in 2026, particularly in Europe
- Downturn in the residential and commercial construction cycle with starts at historic lows
- Persistent uncertainty about interest rate movements, directly affecting construction and renovation activity
- Risk of rising raw material (electronic components, copper, etc.) and energy costs potentially squeezing operating margins
- Exposure to exchange rate fluctuations with about 62% of sales outside Europe, creating currency risk
- Persistent geopolitical tensions likely to disrupt global supply chains and raise logistics costs
- Macroeconomic uncertainties weighing on business and consumer confidence, potentially dampening investments in electrical infrastructure
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Some questions about Legrand stock on the market?
Legrand stock could suit investors seeking long-term exposure to megatrends (AI, data centers, digitalization) through a quality company with solid fundamentals and a CAC 40 membership. However, investors seeking a more affordable entry point, or those more sensitive to the company’s high valuation, might want to wait for a pullback before positioning themselves.
The Legrand dividend is attractive as it has risen by more than 77% over seven years, from €1.34 per share in 2019 to €2.38 per share in 2025. However, it is more of a supplementary income than a main investment driver. Additionally, the payout ratio is capped at 50%.
To invest in Legrand stock, you must first ensure that this stock matches your investor profile. You should then choose the right broker, i.e., a stockbroker suited to your strategy, your profile, and your investment horizon.
