ABB reported record third-quarter orders of $12.055 billion, up 40% year over year, as data center orders grew by a triple-digit percentage and the company raised its 2026 sales outlook.
Orders in the quarter ended Sept. 30 increased from $8.606 billion a year earlier. The total topped the $11.358 billion forecast in AWP’s seven-analyst survey, published Oct. 19. Revenue rose 14% to $9.701 billion, below the survey’s $9.791 billion estimate.
Operational EBITA, or earnings before interest, taxes and amortization, climbed 24% to $2.026 billion, ahead of the survey’s $2.002 billion forecast. ABB’s operational EBITA margin widened to 20.8% from 19.2% a year earlier. Net income attributable to ABB fell 2% to $1.181 billion.
ABB now expects comparable revenue growth in the low teens for 2026, tightening its previous outlook of low double-digit to low-teens growth. It also expects its reported operational EBITA margin to improve by at least 270 basis points from 2025. The company said orders edged higher than in the second quarter, despite a historical pattern of seasonal declines at that point in the year.
ABB sells electrical equipment used in data centers. Its Infinitus direct-current portfolio, announced in September, is designed for facilities with rising power needs and includes power distribution, protection and cooling optimization equipment.
In a separate deal, ABB agreed to pay about JPY 79 billion ($495 million) for a 51% stake in a company carved out of Mitsubishi Electric’s low-voltage power distribution business, along with full ownership of related sales operations outside Japan. The venture is expected to close in the second half of 2027, subject to approvals and other conditions.
Reuters reported ABB shares were down nearly 6% in Swiss trading at the time of its Oct. 20 report. Marco Estermann, an analyst at Luzerner Kantonalbank, told Reuters that waning enthusiasm for artificial intelligence was weighing on the stock despite ABB’s strong operating performance. ABB has scheduled its fourth-quarter and full-year results for Jan. 28, 2027.
