Business · NEWS EXPLAINER
ABB’s record $12.1 billion orders: data centers, profit and the raised 2026 outlook
Third-quarter orders rose 40% and data-center demand more than doubled. Revenue and operational EBITA climbed, but net income slipped, while ABB lifted its full-year sales-growth guidance.
ABB reported record third-quarter 2026 orders of $12.055 billion, up 40%, as data-center demand grew at a triple-digit pace. Revenue rose 14% to $9.701 billion, leaving orders ahead of sales and producing a 1.24 book-to-bill ratio.
Operational EBITA rose 24% to $2.026 billion, but net income attributable to ABB fell 2% to $1.181 billion. ABB raised full-year comparable revenue-growth guidance to the low-teens range and separately announced a roughly $495 million investment for control of a planned Mitsubishi Electric joint venture.
Orders reached a record and ran ahead of revenue
ABB reported $12.055 billion of third-quarter orders, up 40% both on a reported and comparable basis. Revenue rose 14% to $9.701 billion. Because orders were higher than revenue, the book-to-bill ratio was 1.24, indicating that new work entered the backlog faster than ABB recognized sales during the quarter.
Data centers were the clearest demand driver
ABB said data-center orders increased at a triple-digit rate; Reuters described them as more than doubling. The demand spans power distribution and cooling equipment used to build and operate AI-oriented data centers. This is an order signal, not a guarantee that every project will be completed on schedule or at the same margin.
Operating profit rose, but the earnings picture was mixed
Operational EBITA increased 24% to $2.026 billion and its margin expanded 160 basis points to 20.8%. Income from operations rose 15% to $1.846 billion. Net income attributable to ABB, however, slipped 2% to $1.181 billion and basic earnings per share fell 2% to $0.65, so the quarter should not be summarized as every profit measure rising.
Cash flow strengthened the operating result
Cash flow from operating activities increased 5% to $1.862 billion, while free cash flow rose 2% to $1.576 billion. ABB said nine-month free cash flow reached $3.707 billion. These measures support the operating story, but they remain historical results rather than a forecast of future cash generation.
Guidance moved higher, alongside a separate Japan investment
ABB now expects full-year comparable revenue growth in the low-teens percentage range, a narrower and higher formulation than its previous low-double-digit to low-teens range. Separately, it agreed to invest about $495 million for a controlling 51% stake in a planned low-voltage power-distribution joint venture with Mitsubishi Electric. The transaction still requires formation and closing steps; it is not part of the quarter’s recognized revenue.
