ABB Posts Record $12 Billion Orders as AI Data Centre Boom Drives Power Distribution Demand

ABB Quarterly Orders Surge to Record $12 Billion

ABB, the Swiss engineering group, reported record quarterly orders of $12 billion for the three months ended September 30, marking a 40% surge driven primarily by the data centre boom.1

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The company's operational earnings before interest, tax and amortisation jumped 24% to $2.03 billion, slightly ahead of analyst forecasts for $2.0 billion.3

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Revenue rose 14% to $9.70 billion, marginally below analyst expectations of $9.74 billion.1

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The operational EBITA margin expanded to 20.8% from 19.2% in the previous year.2

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AI Infrastructure Drives Triple-Digit Growth in Data Center Spending

The standout performer in ABB's third-quarter results was its data centre business, where orders more than doubled compared to the previous year.2

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During the quarter, ABB experienced a triple-digit increase in orders for data centre products, continuing the momentum from Q2 2023.3

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Strong demand for power distribution and cooling systems used in AI infrastructure has been the primary catalyst. ABB executives confirmed during an analyst call that they see no signs of a slowdown in AI-driven data centre demand.2

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The surge in spending on AI and data centres is propping up the global economy, helping it withstand energy shocks, according to the IMF.1

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ABB Financial Performance Prompts Upgraded Guidance

Based on the strong quarterly performance, ABB revised its full-year guidance upward for the third time this year. The company now expects comparable sales growth in the low-teens percentage range, up from its previous forecast of low double-digit to low-teens percentage growth.1

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For operational earnings before interest, taxes and amortization margin, ABB forecast an improvement of at least 270 basis points this year, compared to 19% reported in 2025.2

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The revenue growth guidance reflects continued confidence in electrification and automation trends across multiple sectors.

$495 Million Joint Venture Targets Asia-Pacific Expansion

ABB announced a strategic $495 million investment to acquire a 51% stake in a newly formed low-voltage power distribution joint venture with Mitsubishi Electric.1

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The joint venture includes an option for ABB to take full ownership over the medium term.2

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ABB CEO Morten Wierod stated that the deal will make the company the low-voltage market leader in Japan, one of the world's largest electrification markets, while opening doors to broader Asia-Pacific expansion.1

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The products from this venture are used in data centres and other industries, positioning ABB to benefit from local data centre build-out and regional power trends.

Market Dynamics Trigger Share Price Decline Despite Strong Results

Despite robust ABB quarterly orders and financial performance, shares fell 5.5% in European trading, reducing the year-to-date gain to 19%.2

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The decline was part of a broad-based retreat among AI-related stocks, with European industrial peers Siemens and Schneider Electric sliding 4.1% and 2.8% respectively.2

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Investor concerns about rising borrowing costs have sparked a selloff across AI infrastructure companies in recent days. The IMF warned that a reassessment of efficiency gains from adopting AI technology could potentially dent investment, adding to market uncertainty.1

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Watch for how sustained AI spending patterns and interest rate movements shape ABB's trajectory in coming quarters, particularly as the company expands its Asia-Pacific footprint through the Mitsubishi Electric partnership.