Market momentum is shifting for Europes industrials as AI infrastructure investment and accelerating electrification converge with a manufacturing recovery. Analysts now expect the Stoxx Europe 600 industrials cohort to see renewed earnings-per-share growth in 2026, led by companies that supply power hardware, cabling and energy management systems for data centers and electrified industry.
AI Infrastructure: The Core Driver
Key Players in Powering AI
AI model training and inference require a surge in reliable power delivery and thermal management. Schneider Electric SE, Siemens Energy AG and Prysmian SpA sit at the center of that demand chain. Schneiders power distribution and digital energy services address data center uptime and efficiency. Siemens Energy provides generation, grid and high-capacity distribution equipment that utility-scale AI clusters require. Prysmians high-voltage and specialty cables move power from grid to server hall and industrial plant.
Analyst Confidence & Growth Projections
Citigroup has highlighted Schneider Electrics earnings visibility as a reason for a positive stance, citing recurring digital services and order momentum. Bloomberg Intelligence points to Siemens Energys strong order book and exposure to high-voltage projects. Deutsche Bank sees sustained cable demand supporting Prysmians revenue mix. Collectively, analysts argue that this is “as much a race for electricity as it is a race for AI,” translating to clearer EPS trajectories for suppliers in 2026.
Broader Catalysts & Market Resilience
Electrification and Data Center Expansion
Electrification across transport, industry and buildings increases load on grids and creates demand for transformers, switchgear and cabling. Continued data center buildout to host large AI workloads multiplies that effect, making energy infrastructure a direct lever of AI monetization.
Supporting Factors: Fiscal Stimulus & Sector Recovery
Targeted German fiscal measures and a wider rebound in manufacturing and semiconductors add cyclic tailwinds. Those policy and sectoral supports help convert capex programmes into tangible orders for industrial suppliers.
Looking Ahead
Europes industrials look set for a constructive 2026 driven by AI infrastructure and electrification demand. Investors and decision makers should focus on firms with power hardware, energy management and cable exposure, where visibility on orders and margins is already improving.
