Demand tied to data‑centre and AI projects pushed ABB's orders sharply higher, helping first‑quarter sales climb 18% to $8.73bn and prompting the group to raise its 2026 sales outlook. Operational EBITA rose to $2.05bn as management reported margin gains across divisions.

Q1 results and headline numbers

ABB reported first‑quarter sales of $8.73bn, up 18% year‑on‑year and ahead of analyst forecasts. Operational EBITA rose to $2.05bn, reflecting margin gains. The result beat an analysts' average estimate of $8.25bn and the company's own consensus of $8.43bn. CEO Morten Wierod said the firm had enjoyed "a strong start to the year with a supportive overall market environment and improved business performance."

What's driving the jump

ABB attributed much of the outperformance to elevated orders from data‑centre and AI‑related projects, which boosted the Power Grids business. Other areas of momentum included mobility, smart buildings and healthcare and life sciences. Management said margins expanded across divisions thanks to higher volumes, operational improvements and selective pricing.

Upgraded guidance and what it means

Following the quarter, ABB raised its 2026 sales outlook to a high single‑digit to low double‑digit percentage increase on a comparable basis, up from a prior range of 6–9%. The revision reflects stronger order intake and improved margin performance and signals management expects demand around data‑centre electrification and automation to persist. ABB said it will continue to invest at a "healthy pace" to support growth and operational efficiency.

Orders surge and the underlying book

The company reported a rise in orders that management said was broad based across regions and end markets. Data‑centre projects were singled out as a particularly durable source of demand, alongside steady activity in traditional industrial automation and electrical distribution. Higher orders should feed the backlog and support revenue recognition in coming quarters, suggesting customers are pressing ahead with infrastructure tied to AI deployment rather than deferring it.

Why this matters: The upgraded guidance and broad‑based order inflows indicate customers are progressing with investments in data‑centre electrification and automation. That should boost ABB's backlog and help sustain revenue and margin improvements in the quarters ahead.

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ABB raised its 2026 sales outlook to a high single‑digit to low double‑digit comparable increase, up from a prior range of 6–9%. "We have had a strong start to the year with a supportive overall market environment and improved business performance," said Morten Wierod, ABB chief executive.

This article was created with AI assistance.