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ABB Ltd (ABJA) Q3 2026 Earnings Report

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DE:ABJA Q3 2026 EPS Results

Actual EPS
EUR 0.62
Consensus EPS
EUR 0.71
Beat/Miss
Missed by -EUR 0.09
One Year Ago EPS
EUR 0.59

DE:ABJA Q3 2026 Revenue Results

Actual Revenue
EUR 8.66B
Expected Revenue
EUR 8.72B
Beat/Miss
Missed by -EUR 63.85M
YoY Revenue Growth
+7.16%

Earnings Announcement Details

Quarter
Q3 2026
Date
10/20/2026
Time
Before Open
Conference Call
Tuesday, October 20, 2026
DE:ABJA Upcoming Earnings

ABB Ltd's next earnings date is estimated for January 28, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Audio

DE:ABJA Q3 2026 Earnings Call
0:00 / 0:00

Q3 2026 Earnings Slide Deck

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Oct 20, 2026|% Change Since:-5.32%|
Earnings Call Sentiment|Positive

The call was strongly positive overall. ABB reported record or near-record operational profitability, broad-based order and revenue growth, strong free cash flow, robust data center and utility demand, and an upgraded full-year outlook. The main challenges were a 2% EPS decline caused by the Rotork-related FX hedge and discontinued operations, pressure in Motion margins, high Electrification utilization, and continued softness in process industries, the Middle East, and some traditional markets. These lowlights were outweighed by the breadth and strength of the operating performance and the company's stated growth and investment opportunities.

Company Guidance

For the fourth quarter, ABB expects comparable revenue growth to be broadly similar to the third quarter and the operational EBITA margin to show a sequential decline, but slightly less than what we normally see; this guidance does not include the positive one-off from the real estate sale, which will trigger a gain of about 240 million Swiss francs booked in the fourth quarter. For full-year 2026, ABB now calls for comparable growth to be in the low teens range and expects the reported operational EBITA margin to improve by at least 270 basis points from 2025, including real estate sales. Electrification expects comparable revenue growth to be in the high teens to low 20% range, with a sequential Q4 margin drop slightly softer than the historical average of around 150 basis points; Motion expects comparable revenue growth similar to the Q3 level and operational EBITA margin to slightly improve sequentially; Automation expects low to mid-single digit comparable revenue growth and aims to keep the operational EBITA margin broadly stable from Q3. CapEx is expected to remain around $1 billion or so over the next few years, free cash flow is moving towards the $5 billion or so level, and the Mitsubishi Electric joint venture is expected to close during the second half of 2027, with an operational EBITA margin of at least 20% five years after deal completion.

  • Strong Group Order Intake and BacklogThird-quarter order intake reached just above $12 billion, representing a comparable increase of 40% from last year. Orders grew across short-cycle products, services, projects, and systems, with book-to-bill at 1.24 and the order backlog expanding to just about $32 billion, almost equivalent to 2025 full-year revenues.
  • Broad-Based Revenue GrowthAll three business areas contributed to comparable revenue growth of 14%. Volume expansion was the primary driver, complemented by net pricing realization of just about 2%, and both short- and long-cycle businesses recorded double-digit improvements.
  • Record Operational Profitability and ROCEOperational EBITA increased 24% to $2 billion, with growth in all three business areas. The 20.8% operational EBITA margin and 19% EBIT margin were both the strongest Q3 margins ever for ABB. Return on capital employed was 29.9%, and ABB reiterated its objective of delivering more than 20% ROCE when it begins making more sizable acquisitions.
  • Strong Geographic Order GrowthComparable orders increased by double digits in all three regions. The Americas rose 70%, including an 82% increase in the U.S.; U.S. base orders improved by about 50%. Europe increased 10%, while Asia, Middle East, and Africa improved 29%, including 25% growth in China.
  • Mitsubishi Electric Low-Voltage Joint VentureABB announced a 51% ownership stake in a joint venture with Mitsubishi Electric's low-voltage power distribution business, with a midterm path to full ownership. The transaction makes ABB the low-voltage market leader in Japan and provides a potential platform for growth in Malaysia, Thailand, Vietnam, and Indonesia. The business generated around $640 million of fiscal 2025 revenue at a low double-digit EBITA margin, and ABB targets an operational EBITA margin of at least 20% five years after completion. The transaction values the new company at around $890 million, or 1.4 times sales and 11.1 times EBITA based on 2025 actuals; including expected synergies, the EV-to-EBITA multiple reduces into the mid to high single-digit range. ABB expects an internal rate of return well above its cost of capital and expects the deal to close during the second half of 2027.
  • Infinitus Direct-Current Portfolio LaunchABB launched the Infinitus direct-current portfolio to support AI data center customers across DC architectures from source to rack, including localized DC and centralized high-density designs. The portfolio uses five modular building blocks spanning grid connectivity or behind-the-meter generation, DC conversion and distribution, power protection, and cooling optimization. ABB said solid-state transformers will be available to order in the second half of 2027.
  • Direct-Current Efficiency and Addressable-Market OpportunityABB stated that shifting a 500 MW data center to DC architecture can reduce conversion losses by more than 5%, saving almost 200 GWh annually. For a 100 MW facility, a 5% energy-efficiency improvement can free up five to six additional megawatts for token generation, which ABB said is worth close to $100 million in potential annual revenue for the operator. ABB believes as much as 75% of electrical power infrastructure spend in the target DC architecture can be linked to the gray space, compared with about 55% in a legacy AC architecture.
  • DC Technology Partnerships and Market PositioningABB will support Ferrari Hypersail with marine power, DC technology, and advanced electrical systems for a 100-foot oceanic full-foil monohull yacht powered by renewable energy. ABB also published a report with BCG stating that direct current is moving from the periphery to the center of industrial, commercial, and digital infrastructure, with a future hybrid system combining AC and DC.
  • Capacity Investment Supporting GrowthCapital expenditure is tracking at the higher level of around $1 billion as ABB invests to support customer demand. Some product lines, particularly in Electrification, are approaching high utilization, while ongoing investments are expected to become fully operational during 2027. Management said the capacity build-out includes factories and manufacturing investments coming online.
  • Electrification Reached New RecordsElectrification order intake reached a record close to $7.7 billion, up 70% year over year and above the already high second-quarter level. Data center orders grew at a triple-digit rate, while orders excluding data centers increased at a high teens level and all large customer segments grew at a double-digit pace. Revenue was $5.4 billion, up 21% comparably, with pricing contributing around 3%. Operational EBITA rose 27% to $1.4 billion, and the margin increased 110 basis points to a record 25.6%.
  • Electrification Fourth-Quarter OutlookElectrification is expected to deliver comparable fourth-quarter revenue growth in the high teens to low 20% range. ABB expects the usual sequential seasonal margin decline, but anticipates a slightly softer drop than the historical average of around 150 basis points.
  • Motion Revenue and Orders IncreasedMotion order intake was $2.5 billion, up 12% comparably, driven by short-cycle business, grid-related investments, HVAC for commercial buildings and data center cooling, and food and beverage. Revenue reached $2.3 billion, up 9%, supported mainly by higher short-cycle volumes, solid pricing, and about 2% revenue contribution from M&A. ABB expects fourth-quarter comparable revenue growth similar to the Q3 level and a slight sequential improvement in operational EBITA margin.
  • Automation Margin Improvement and Demand AreasAutomation orders were stable year over year at $2.1 billion, with sequential softness attributed mainly to order-placement timing. Demand remained good for energy efficiency and energy resilience, marine and ports, electrification, and automation. Revenue was $2.1 billion, up 5% comparably, and operational EBITA margin improved 90 basis points to 14.8%. ABB expects low to mid-single-digit comparable revenue growth in Q4 and aims to keep the margin broadly stable from Q3.
  • Solid Free Cash Flow GenerationThird-quarter free cash flow was $1.6 billion, up 2% year over year, driven by higher operational earnings in continuing operations. Year-to-date free cash flow reached $3.7 billion, and management said ABB is well on track toward improving on last year's $4.6 billion. The company expects a path toward approximately $5 billion, supported by operational performance and a real estate cash contribution described as around $300 million in the outlook discussion and $260 million in the CFO's Q&A response.
  • Positive Full-Year Guidance UpdateABB expects fourth-quarter comparable revenue growth to be broadly similar to the third quarter. A completed real estate sale will generate a gain of about 240 million Swiss francs in Q4 and resulted in a slight upgrade to full-year 2026 guidance. ABB now expects comparable growth in the low teens range and reported operational EBITA margin improvement of at least 270 basis points from 2025, including real estate sales.
  • AI Deployment Across ABBABB described three AI pillars: AI for people, AI for business and functions, and AI for technology, products, systems, and solutions. Employees are participating in internal AI certification and training, and teams have created almost 10,000 agents for employees. ABB is also developing customer-facing service agents and measuring both operational improvement and internal token costs, although management did not provide a single company-wide quantified benefit.
  • Strong Utility and Grid Investment DemandUtility demand was described as strong across all three reporting regions, driven by data center demand, broader electrification of society, building cooling, electrified transport, energy transition, aging infrastructure, and the need for grid expansion and resilience. ABB said utility growth was well above double digits and not clearly linked to GDP growth.
  • Capacity for Further M&AManagement said ABB has the operational capacity to continue pursuing acquisitions under its ABB Way model, with different divisions responsible for integrating the Rotork and Mitsubishi Electric transactions. Net debt to EBITA was around 0.2, and management said ABB could move toward 2x while remaining within its rating area, potentially freeing up $13 billion-$14 billion.
  • Customer Validation of Data Center OrdersABB said large data center projects generally involve customer assessment, significant advance payments or clear cancellation policies, specific permitted sites, grid connections, and funding. Management said it does not see pre-ordering and stated that typical data center lead times range from 12 to 24 months, with orders booked this year expected to ship in 2027 or 2028.

DE:ABJA Earnings History

DE:ABJA earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Jan 28, 20272026 (Q4)0.90-0.62――
Oct 20, 20262026 (Q3)0.710.620.594.85% (+0.03)
Jul 16, 20262026 (Q2)0.660.590.564.76% (+0.03)
Apr 22, 20262026 (Q1)0.700.650.5421.67% (+0.12)
Jan 29, 20262025 (Q4)0.590.620.4732.08% (+0.15)
Oct 16, 20252025 (Q3)0.590.590.4629.41% (+0.13)
Jul 17, 20252025 (Q2)0.570.560.536.78% (+0.04)
Apr 17, 20252025 (Q1)0.490.540.4422.45% (+0.10)
Jan 30, 20252024 (Q4)0.480.470.456.00% (+0.03)
Oct 17, 20242024 (Q3)0.500.460.436.25% (+0.03)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed