ABB  (ABBN.S) opens new tab shares hit an all-time high on Wednesday after the Swiss engineering ‌group raised its full-year sales and profit forecasts, boosted by surging demand from data centres.

Investors welcomed the guidance upgrade and first-quarter earnings that beat expectations, pushing the shares up nearly 6% in early trading.

ABB said ​strong growth from data centres and other parts of its electrification business had offset ​heightened uncertainties linked to the  Iran war. 

The group is also benefiting from heavy ⁠investment by utilities improving power grids, as well as electrical upgrades for land transport and ​automation at port terminals and cruise ships – trends it said should continue.

ABB now expects 2026 sales ​to rise by a high single-digit to low double-digit percentage, up from its previous forecast for comparable revenue growth of 6% to 9%.

It also expects its operational earnings before interest, tax, depreciation and amortisation (EBITA) margin to ​improve, versus previous guidance for a slight improvement.

CAUTION ON GLOBAL GROWTH

The upbeat outlook, underpinned by ​a record quarterly order intake, contrasts with growing caution over the global economy. The  International Monetary Fund  recently cut ‌its ⁠growth forecast, citing soaring energy prices linked to the Iran war.

CEO Morten Wierod said ABB raised its outlook after demand remained robust at the start of the year, with no material impact from the war.

“It’s based on our order backlog, plus discussions we have with our partners ​and customers around the ​world,” he added.

Wierod ⁠said demand for automation and electrification products should accelerate as energy use rises and companies pursue efficiency gains, while data centre demand linked to artificial ​intelligence would continue to grow rapidly.

In the first quarter, ABB said ​sales rose ⁠18% to $8.73 billion, beating forecasts of $8.43 billion. Operational EBITA climbed to $2.05 billion, above expectations of $1.96 billion, supported by higher margins.

Analysts also pointed to a sharp rise in orders, up 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’ percentage, but strength across the board with record order levels in both ​Electrification and Motion,” Citi analysts said.

ABOUT ABB

As AI reshapes our digital world, ABB helps data centres outrun

ABB technology powers one in four data centres globally. From cloud environments to gigawatt-scale AI facilities, we collaborate with customers and partners to deliver the world’s most advanced data centres. Our comprehensive portfolio spans from source to rack, ensuring next-generation data centres have the expertise and technology they need.

For further information visit https://new.abb.com/data-centers  or email LV.Enquiries@gb.abb.com or tel #: 4403339999900

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