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ABB Reports Record Q3 Orders Driven by Data Center Demand but EPS Slipping 2%

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ABJCHF 74.59 −1.93%

ABB Ltd (BX:ABJ) reported a record order intake of $12.06 billion for the third quarter of 2026, marking a 40% increase year-on-year. Revenue expanded 14% to $9.70 billion, while operational EBITA grew 24% to $2.03 billion, lifting operational margin to 20.8%. Demand was notably boosted by AI data centers, where order growth reached triple digits.

Despite strong operational growth, net income attributable to the company fell 2% to $1.18 billion, with basic earnings per share slipping 2% to $0.65. The decline was driven by increased net finance expenses related to currency hedging for the pending acquisition of Rotork. Operating cash flow rose 5% to $1.86 billion, while free cash flow reached $1.58 billion.

Alongside earnings, ABB announced a joint venture agreement to buy a controlling 51% stake in Mitsubishi Electric's low-voltage power distribution business for approximately $495 million. Looking ahead to full-year 2026, ABB expects comparable revenue growth in the low teens and an operational EBITA margin expansion of at least 270 basis points.

Key points

  • Third-quarter orders rose 40% year-on-year to a record $12.06 billion, driven by surging demand from AI data center customers.
  • Operational EBITA increased 24% to $2.03 billion, expanding operational margin to 20.8%.
  • Net income fell 2% to $1.18 billion ($0.65 per share) due to higher financial costs tied to currency hedging.
  • ABB announced a $495 million deal for a 51% controlling stake in a low-voltage joint venture with Mitsubishi Electric.
  • For full-year 2026, the company projects low-teens revenue growth and operational EBITA margin improvement of at least 270 basis points.

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Questions and answers

What were ABB's Q3 2026 financial results?

ABB reported Q3 2026 orders of $12.06 billion, up 40% year-on-year, and revenues of $9.70 billion, up 14%. Operational EBITA rose 24% to $2.03 billion, while net income fell 2% to $1.18 billion.

Why did ABB's earnings per share decrease in Q3 2026?

Earnings per share dropped 2% to $0.65 due to higher net finance expenses caused by a non-cash revaluation of a currency hedge linked to the Rotork acquisition.

What acquisition did ABB announce with its Q3 2026 results?

ABB announced an agreement to acquire a controlling 51% stake in a joint venture formed with Mitsubishi Electric's low-voltage power distribution business for about $495 million.