ABB stock gains support from record orders and data center demand

ABB reported record third-quarter order intake on October 20, with demand from data centers helping the electrification and industrial technology group outperform its usual seasonal pattern. ABB stock traded at 77.96 euros on Lang & Schwarz at 10:38 CET on Friday, October 30, 2026.

According to ABB's Q3 2026 results release, orders rose 40 percent year over year to USD 12.055 billion. Revenue increased 14 percent to USD 9.701 billion, while the order intake exceeded revenue and produced a book-to-bill ratio of 1.24.

Data centers drive electrification demand

ABB said the data center segment posted triple-digit order growth in the quarter. The company also reported broad momentum across customer groups, with two of its three business areas contributing strongly to the year-over-year increase.

The order mix gives the quarterly performance a specific growth engine. Demand for power distribution, energy efficiency and related electrification equipment is expanding as data center operators invest in capacity for artificial intelligence and other power-intensive applications.

Margins improve despite finance effects

Operational EBITA rose 24 percent to USD 2.026 billion, and the margin expanded by 1.6 percentage points to 20.8 percent. Income from operations increased 15 percent to USD 1.846 billion, with a 19.0 percent margin.

Net income attributable to ABB fell 2 percent to USD 1.181 billion, while basic earnings per share declined 2 percent to USD 0.65. ABB said higher net finance expenses, mainly linked to the non-cash revaluation of a deal-contingent foreign-exchange hedge tied to the Rotork acquisition, weighed on earnings per share.

Cash generation remained strong. Operating cash flow increased 5 percent to USD 1.862 billion, and free cash flow rose 2 percent to USD 1.576 billion in the quarter. For the first nine months, free cash flow reached USD 3.707 billion, up 22 percent from the prior-year period.

Full-year outlook moves higher

For the fourth quarter, ABB expects comparable revenue growth to remain broadly similar to the third quarter. The Operational EBITA margin is expected to soften sequentially, although less than the historical seasonal pattern. The outlook excludes a positive contribution of about CHF 240 million from completed property sales.

For full-year 2026, management expects a positive book-to-bill ratio, comparable revenue growth in the low-teens range and reported Operational EBITA margin improvement of at least 270 basis points year over year. ABB is also expanding capacity selectively while keeping its medium-term capital expenditure level near USD 1 billion.

ABB has launched a direct-current portfolio aimed at higher power density and improved energy efficiency in data centers. The company says a solid-state transformer from that portfolio should become commercially available in the second half of 2027.

ABB is pursuing a 51 percent controlling stake in a joint venture with Mitsubishi Electric's low-voltage power distribution business. The transaction is intended to strengthen ABB's position in Japan and broaden access to Asia-Pacific electrification demand.

For the real-time quote of ABB stock, investors should watch whether strong order intake converts into revenue and margin progress in the coming quarters.

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