ABB raises 2026 sales outlook on strong Q1 results
ABB raised its annual sales outlook after reporting a strong first quarter. Growth was supported by robust demand for data centers used to process AI.
The industrial technology giant ABB LTD-REG has upgraded its medium-term sales targets following a robust first-quarter performance driven by the global expansion of artificial intelligence and data center infrastructure. Based in Switzerland, the engineering firm now anticipates its 2026 sales to grow by a high single-digit to low double-digit percentage, an increase from its previous guidance of 6-9% comparable annual revenue growth.
The company reported that its sales for the first three months of the year climbed 18% to reach $8.73 billion, surpassing the $8.43 billion consensus estimate provided by analysts. Operational earnings before interest, taxes, and amortization (EBITA) also exceeded expectations, coming in at $2.05 billion against a forecasted $1.96 billion, bolstered by strengthening profit margins across its industrial automation and electrical distribution segments.
Chief Executive Officer Morten Wierod highlighted the positive momentum across the company's core markets.
"We have had a strong start to the year with a supportive overall market environment and improved business performance."
Despite broader geopolitical uncertainties stemming from conflicts in the Middle East, ABB noted that demand for its specialized equipment has remained resilient. The surge in data center construction required to support AI processing has become a primary catalyst for the company's optimistic revisions.
"Overall demand remained robust throughout the period."
The Zurich-based firm continues to benefit from its strategic positioning in electrical distribution, which is essential for the high-power requirements of modern computing facilities.
