ABB’s Data Centre Business Booms As Q3 Orders Jump 40% To $12bn
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✧ GENERATE BRIEFING
Swiss engineering and industrial automation group ABB Ltd reported record third-quarter results on October 20, 2026, driven by triple-digit order growth in equipment for artificial intelligence (AI) data centers. Quarterly order intake surged 40% year-on-year to $12.06 billion, pushing the company's total order backlog to $32.26 billion. Key operational metrics, financial performance, and regional joint ventures include:Financial Outperformance: Operational EBITA expanded by 24% YoY to $2.03 billion (beating market expectations of $2.0 billion), with an operational EBITA margin of 20.8%. Group revenues rose 14% YoY to $9.70 billion. AI Infrastructure & Electrification Surge: Demand was led by the Electrification segment, where data center orders more than doubled as global tech hyperscalers expanded facilities requiring specialized power distribution, switchgear, and direct-current (DC) cooling infrastructure. Upgraded Guidance: Under CEO Morten Wierod, ABB raised its full-year 2026 outlook, now targeting comparable revenue growth in the "low-teens" percentage range and an Operational EBITA margin expansion of at least 270 basis points year-on-year.
Swiss engineering group ABB reported record quarterly orders as demand for equipment used in artificial intelligence (AI) data centres surged, highlighting the growing need for electricity distribution, cooling and automation infrastructure. The company’s third-quarter results, released on October 20, 2026, showed that orders rose 40% year-on-year to approximately $12.06 billion.
Operational Earnings and Revenue Metrics
ABB’s operational earnings before interest, tax and amortisation (EBITA) increased 24% to $2.03 billion in the July–September quarter, exceeding analysts’ average forecast of $2 billion. Revenue rose 14% to $9.70 billion, marginally below the $9.74 billion expected by analysts.
The robust demand pushed ABB’s overall order backlog up 35% year-on-year to $32.26 billion, underscoring strong medium-term visibility across its electrification and industrial automation divisions.
Triple-Digit Data Center Growth and Upgraded Guidance
The strongest growth came from products used in data centres, where orders more than doubled as technology companies expanded infrastructure to support AI services. ABB supplies equipment for power distribution and cooling, both essential for facilities that operate energy-intensive computing systems.
The surge in orders prompted ABB to raise its full-year outlook. Under Chief Executive Officer Morten Wierod, the company now expects full-year 2026 comparable sales growth in the low-teens percentage range, compared with its earlier forecast of growth ranging from the low double digits to the low teens.
The results underline how investment in AI infrastructure is creating new business opportunities for companies supplying electrical equipment and industrial automation technology. Data centres require reliable power systems and cooling infrastructure to support increasingly demanding computing workloads.
$495M Mitsubishi Electric Joint Venture
ABB also announced a $495 million investment for a 51% stake in a low-voltage power distribution joint venture with Mitsubishi Electric. The partnership involves carving out Mitsubishi’s low-voltage circuit breaker, electromagnetic switch, and control equipment business into a new entity.
The venture is intended to strengthen ABB’s position in Japan’s domestic electrification market and expand its sales reach across the broader Asia-Pacific region.
Macroeconomic Factors and Sector Outlook
The company’s performance comes as AI-related investment helps sustain economic activity despite geopolitical uncertainty and higher energy costs. However, concerns remain that a reassessment of the financial returns from AI adoption could eventually slow investment in data centres and related infrastructure.
