Legrand shares climbed after the French supplier of electrical equipment raised its 2030 targets as it positioned itself to capitalize on the rapid data-center buildout driven by artificial intelligence. Ahead of an investor event, the company said it expects annual organic sales growth of 6% to 8% over the 2027 to 2030 period, up from its previous guidance of 3% to 5% through 2030.

Acquisitions are expected to boost revenue by 5% on average, while the group also plans to offload businesses representing sales of between 500 million and 1 billion euros ($568.6 million-$1.14 billion). Legrand is targeting an adjusted operating margin of 21% to 22% on average, ahead of its prior goal of around 20%.

The company said the energy and digital transition, driven by the rapid expansion of AI data centers and electrification, prompted it to upgrade its 2030 sales and profitability ambitions. Legrand expects to generate more than 3 billion euros in sales from the data-center market this year and is positioning itself to enable the next generation of AI data centers.

Legrand said it would deploy 60% of its free cash flow on acquisitions on average and carry out selective stock buybacks in addition to its dividends. The new targets are better than expected and are coupled with higher ambitions for acquisitions and an explicit divestment program, which point to Legrand taking a more active approach to reshaping its portfolio, analysts at Jefferies wrote in a note to clients.