Finance
Abb Boosts 2026 Sales Outlook After Strong Q1 on Data Centre Demand
Published by Global Banking & Finance Review®
Posted on April 22, 2026
3 min readLast updated: April 22, 2026
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ABB raised its 2026 revenue growth forecast to high single- to low double-digit percentages after posting strong Q1 results—sales jumped 18% to $8.73B and EBITA hit $2.05B—driven by robust demand from AI-driven data centres despite geopolitical uncertainties.
ABB lifts 2026 sales outlook after data centre demand boosts quarterly results
ABB Raises Sales Outlook Amid Strong Data Centre and Electrification Demand
By John Revill
ZURICH, April 22 (Reuters) - ABB raised its full-year sales outlook on Wednesday as booming demand from data centres and other parts of its electrification business offset heightened uncertainties linked to the Iran war.
Growth Drivers and Market Segments
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.
2026 Sales Forecast Update
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 company's shares were indicated 5.9% higher in pre-market activity on the Swiss stock exchange following the upgrade.
Global Economic Context
Caution About Global Economic Growth
CAUTION ABOUT GLOBAL ECONOMIC GROWTH
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.
CEO Statement on Market Resilience
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.
Quarterly Results and Analyst Reactions
First-Quarter Performance
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 amortization (EBITA) rose to $2.05 billion, ahead of forecasts for $1.96 billion, supported by higher profit margins.
Order Intake and Analyst Commentary
Analysts pointed to the strong order uptake, which rose by 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” %, but strength across the board with record order levels in both Electrification and Motion," said Citi analysts in a note.
(Reporting by John Revill, Editing by Miranda Murray and Tomasz Janowski)
Key Takeaways
- •Sales rose 18% year‑on‑year in Q1 2026, reaching $8.73 billion—well above the $8.43 billion analyst consensus. (omniekonomi.se)
- •Operational EBITA climbed to $2.05 billion, surpassing expectations of $1.96 billion, boosted by expanded profit margins. (omniekonomi.se)
- •ABB raised its full‑year 2026 comparable sales growth forecast to high single‑ to low double‑digit percent, up from the prior 6–9% range, citing resilient demand, especially from AI‑powered data centres. (omniekonomi.se)
References
Frequently Asked Questions about ABB boosts 2026 sales outlook after strong Q1 on data centre demand
1Why did ABB raise its 2026 sales outlook?
ABB raised its outlook due to stronger-than-expected Q1 results and robust demand from data centres serving artificial intelligence.
2How much did ABB's sales increase in Q1?
ABB's sales rose 18% to $8.73 billion in the first quarter, beating analyst forecasts.
3What markets contributed to ABB's Q1 growth?
The growth was driven by continued strong demand in the data centre market, particularly for processing artificial intelligence.
4What is ABB's new 2026 sales growth outlook?
ABB now expects its 2026 sales to grow by a high single-digit to low double-digit percentage, up from its previous 6-9% forecast.
5Who is the CEO of ABB?
Morten Wierod is the CEO of ABB.
