ABB reports $12,055 million in quarterly orders as data-centre demand grows

ABB reported third-quarter 2026 orders of $12,055 million, up 40% from $8,606 million a year earlier, in its 20 October results release from Zurich. The Swiss engineering group, which supplies power distribution equipment to data centres, said orders from that segment rose at a triple-digit rate.

Data centres lift ABB’s order intake

Orders exceeded revenue in the quarter ended 30 September, giving ABB a book-to-bill ratio of 1.24. The group said orders increased across most customer segments, with particularly strong growth in data centres. Its total order intake also rose from the preceding quarter, against what ABB described as the usual seasonal decline.

Demand for power distribution and cooling products used in data centres accounted for much of the new business, Reuters reported. The news agency said data-centre orders more than doubled. ABB raised its forecast for full-year comparable sales growth to the “low teens” percentage range, from an earlier forecast spanning low double-digit to low-teens growth.

ABB launched its Infinitus Direct Current portfolio during the quarter. The company says its five components can be combined into systems for different AI data-centre power architectures, with the aim of increasing power density and energy efficiency. ABB says a solid-state transformer in the portfolio will become commercially available in the second half of 2027.

ABB’s operating margin reaches 20.8%

Third-quarter revenue rose 14% to $9,701 million from $8,491 million a year earlier. Operational earnings before interest, tax and amortisation, or EBITA, increased 24% to $2,026 million from $1,633 million. ABB’s operational EBITA margin reached 20.8%, up from 19.2%. Its gross profit margin moved the other way, to 40.6% from 41.2%.

Revenue was slightly below the $9.74 billion expected by analysts in a company-gathered consensus, Reuters reported. Operational EBITA, reported as $2.03 billion on the same basis, was slightly ahead of their $2.0 billion forecast. Basic earnings per share fell 2% to $0.65 from $0.66, according to ABB’s results.

Cash flow from operating activities rose 5% to $1,862 million, while free cash flow increased 2% to $1,576 million. ABB said capital spending was running at around $1 billion and that it did not expect a further rise over the medium term. The company described its capacity plans as incremental, combining expansion with automation and selective use of third-party assembly.

Mitsubishi Electric venture targets Japan

ABB also said it would invest $495m for 51% ownership of a Mitsubishi Electric joint venture in low-voltage power distribution. The venture’s products are used in data centres and other industries. ABB chief executive Morten Wierod said the deal would make the group Japan’s low-voltage market leader and provide a route into the wider Asia-Pacific region.

Wierod said demand for ABB’s data-centre services had not slowed and that the value of its orders from the segment was the highest yet in the third quarter, Reuters reported. “Data centres will be a growth market for many years,” he told reporters.

ABB shares fall nearly 6%

ABB’s shares fell nearly 6% on 20 October. Marco Estermann, an analyst at Luzerner Kantonalbank, said: “Operationally ABB remains strong, but waning AI enthusiasm is creating headwinds.” He said that even results exceeding expectations might not have been enough to support the share price.

Andreas Lipkow, chief analyst at broker CMC Markets, pointed to concern over AI companies’ valuations and financing, and whether heavy investment would pay off. ABB’s shares dropped to 70.72 Swiss francs after the results, compared with their June high of 89.14 Swiss francs.