ABB gives confident 2026 outlook, launches $2 billion share buyback after record year

Summary

ABB has struck an upbeat tone for 2026 after delivering record financial performance in 2025, announcing a new $2 billion share buyback program and forecasting 6% to 9% revenue growth for the year ahead. The Swiss engineering group is benefiting from strong AI data center demand alongside rising orders from transport and industrial infrastructure customers.

ZURICH — Swiss engineering giant ABB is heading into 2026 with growing momentum, reporting stronger-than-expected fourth-quarter earnings and unveiling a fresh $2 billion share buyback following its best financial year on record.

The company said confidence is being driven by surging demand tied to artificial intelligence infrastructure, particularly through partnerships with firms such as Nvidia to develop power systems for next-generation AI data centers. ABB is also seeing robust order growth across rail transport, ports, and marine electrification.

Chief executive Morten Wierod said the final quarter of 2025 marked the strongest order intake in the company’s history, with new bookings surpassing $10 billion for the first time.

“Q4 capped a record year for ABB,” Wierod said. “We are positioned in markets with powerful long-term trends, which gives us confidence that 2026 can deliver another all-time high.”

Strong earnings and record annual results

ABB’s operational EBITA rose 19% in the fourth quarter to $1.58 billion, beating market expectations. Revenue climbed 13% to $9.05 billion, also exceeding forecasts.

For the full year, ABB posted:

• Orders: $36.77 billion (record)
• Revenue: $33.22 billion (record)
• Operating EBITA margin: 19% (record)

The figures exclude ABB’s robotics division, which the company is in the process of selling.

Buyback, dividend boost and expansion plans

Alongside its earnings update, ABB announced:

• A new $2 billion share buyback program, replacing the recently completed $1.3 billion scheme
• A proposed dividend of 0.94 Swiss francs per share, up from 0.90 francs last year
• 80 million Swiss francs investment in a new headquarters building in Zurich, set to open in 2031

Shares rose nearly 4% in early Zurich trading following the announcement.

Outlook for 2026

ABB said it is targeting:

• Comparable revenue growth of 6% to 9% in 2026
• Further improvement in operating margins

The company expects continued strength from AI-driven power infrastructure, industrial electrification, and large-scale transport projects — including a recent deal to power 32 container ships simultaneously at Rotterdam’s port.

Why This Matters

ABB’s results highlight how the AI boom is reshaping industrial demand far beyond chipmakers. Power systems, electrification, and grid infrastructure are becoming critical bottlenecks as data centers scale rapidly.

For investors, ABB’s record orders, rising margins, and aggressive capital returns signal strong positioning at the heart of the global AI infrastructure build-out — a trend likely to dominate industrial growth through the rest of the decade.

FAQs

Q1. Why is ABB benefiting from the AI boom?

AI data centers require massive power management, electrification, and cooling infrastructure — all areas where ABB specializes.

Q2. How large is ABB’s new buyback program?

Up to $2 billion, replacing the recently completed $1.3 billion repurchase scheme.

Q3. What growth is ABB forecasting for 2026?

Comparable revenue growth between 6% and 9%, alongside higher margins.

Q4. Did ABB post record results in 2025?

Yes — full-year orders, revenue, and operating margins all reached all-time highs.

Q5. What major industries are driving new demand?

AI data centers, rail transport, ports, marine electrification, and industrial automation.