Swiss engineering group ABB raised its 2026 sales outlook on Wednesday after reporting a stronger-than-expected rise in first-quarter revenue, driven by surging demand from data centres processing artificial intelligence data.
ABB said quarterly sales rose 18% to $8.73 billion, beating analysts’ average estimate of $8.25 billion.
Operational profit also exceeded forecasts, reinforcing confidence in the company’s growth trajectory heading into the second half of the year.
“We have had a strong start to the year with a supportive overall market environment and improved business performance,” Chief Executive Morten Wierod said in a statement.
Demand holds firm across divisions
The company said overall demand remained robust throughout the quarter.
Momentum in mobility and smart buildings held strong, while healthcare and life sciences continued to build on its growth trajectory.
Margins expanded across all divisions, driven by a combination of higher volumes, operational improvements and selective pricing.
Data centres supporting AI were a major contributor to the outperformance of ABB’s Power Grids business, the company added, underscoring how infrastructure investment tied to generative AI is becoming a meaningful revenue driver for industrial conglomerates.
Upgraded guidance
ABB said it now expects 2026 sales to increase by a high single-digit to low double-digit percentage, marginally raising its earlier guidance for comparable annual revenue growth of 6%-9%.
The upgraded outlook reflects continued supportive market trends and stronger margin performance across all divisions.
“Given that we continue to deliver on our growth and margin plans at a healthy pace, we will maintain a healthy pace of investment to continue to drive growth and improve operational efficiency,” ABB said.
Market resilience amid geopolitical headwinds
The reports claimed that ABB was poised to raise its 2026 sales guidance on strong market conditions, particularly within data infrastructure catering to the growing need to process AI workloads.
Despite ongoing geopolitical tensions — including the Middle East conflict and uncertainty around US trade policy — broader market conditions have remained resilient, according to Reuters.
ABB’s results suggest industrial demand for power and automation infrastructure is proving largely insulated from macroeconomic turbulence, at least for now.
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