ABB boosts 2026 sales outlook after strong Q1 on data centre demand (updated)

Abb

22/04/2026 06:14

ABB raises full-year sales outlook after forecast-beating Q1

Record quarterly order intake on data centre, electrification demand

CEO says demand resilient amid Iran war uncertainty

Rewrites, adding new comments from CEO

By John Revill

ZURICH, April 22 (Reuters) - ABB ABBN.S shares hit an all-time high on Wednesday after the Swiss engineering group raised its full-year sales and profit forecasts, boosted by surging demand from data centres.

Investors welcomed the guidance upgrade and first-quarter earnings that beat expectations, pushing the shares up nearly 6% in early trading.

ABB said strong growth from data centres and other parts of its electrification business had offset heightened uncertainties linked to the Iran war.

The group is also benefiting from heavy investment by utilities improving power grids, as well as electrical upgrades for land transport and automation at port terminals and cruise ships - trends it said should continue.

ABB now expects 2026 sales to rise by a high single-digit to low double-digit percentage, up from its previous forecast for comparable revenue growth of 6% to 9%.

It also expects its operational earnings before interest, tax, depreciation and amortisation (EBITA) margin to improve, versus previous guidance for a slight improvement.

CAUTION ON GLOBAL GROWTH

The upbeat outlook, underpinned by a record quarterly order intake, contrasts with growing caution over the global economy. The International Monetary Fund recently cut its growth forecast, citing soaring energy prices linked to the Iran war.

CEO Morten Wierod said ABB raised its outlook after demand remained robust at the start of the year, with no material impact from the war.

"It's based on our order backlog, plus discussions we have with our partners and customers around the world," he added.

Wierod said demand for automation and electrification products should accelerate as energy use rises and companies pursue efficiency gains, while data centre demand linked to artificial intelligence would continue to grow rapidly.

In the first quarter, ABB said sales rose 18% to $8.73 billion, beating forecasts of $8.43 billion. Operational EBITA climbed to $2.05 billion, above expectations of $1.96 billion, supported by higher margins.

Analysts also pointed to a sharp rise in orders, up 32% to $11.29 billion.

"The strength in order intake will be seen as the key positive, with not only data centre orders up 'triple digit' percentage, but strength across the board with record order levels in both Electrification and Motion," Citi analysts said.

 (Reporting by John Revill. Editing by Tomasz Janowski and Mark Potter)

 ((John.Revill@thomsonreuters.com; +41 41 528 36 37; Reuters Messaging: john.revill.thomsonreuters.com@reuters.net/))