ABB lifts 2026 sales outlook on data centre demand
ABB has today raised its full-year sales outlook as booming demand from data centres and other parts of its electrification business offset heightened uncertainties linked to the Iran war.
The Swiss engineering company said it was also seeing strong investments from utilities wanting to improve electrical grids, as well as electrical upgrades for land transport and automation at port terminals and cruise ships.
ABB said it now expected its 2026 sales to increase by a high single-digit to low double-digit percentage, up slightly from its previous view for comparable annual revenue growth of 6-9%.
The optimism, buoyed by ABB's record quarterly order intake, stood in contrast to increased caution surrounding the global economy, with the International Monetary Fund recently cutting its growth forecast due to soaring energy prices because of the Middle East conflict.
ABB CEO Morten Wierod said demand had remained robust at the start of the year, with the company seeing no material impact from the war.
"Admittedly, this conflict adds uncertainty to the global trading climate, although to date, demand for our electrification and automation offerings has remained overall resilient and supportive to our raised ambitions for 2026," he said in a statement.
ABB raised its outlook after posting first-quarter results ahead of forecasts, supported by very strong demand from data centres used to process artificial intelligence.
The Zurich-based company, which makes industrial automation and electrical distribution equipment, said its sales rose 18% to $8.73 billion in the three months to the end of March.
The figure beat forecasts for $8.43 billion in a company-gathered consensus of analysts.
Its operational earnings before interest, taxes and amortisation (EBITA) rose to $2.05 billion, ahead of forecasts for $1.96 billion, supported by higher profit margins.
Analysts pointed to the strong order uptake, which rose by 32%, to $11.29 billion.
