ABB orders jump 40% to record $12.1 billion on data centre demand

ABB, the Swiss electrical equipment and automation group, reported record third-quarter orders of about $12.1 billion on Tuesday, 20 October 2026, up 40% on a comparable basis, as demand from data centres grew at a triple-digit rate. Orders beat the average analyst estimate of $11.4 billion, and the company raised its full-year revenue growth forecast to the "low teens". But adjusted earnings per share of $0.69 fell short of the $0.79 analysts expected, and ABB's shares fell about 5% on the day amid wider worries about spending on artificial intelligence.

Data centres, the buildings full of servers that run cloud services and train and operate AI models, use enormous amounts of electricity and need equipment to deliver, convert, protect and cool that power. ABB makes much of that equipment: switchgear (devices that control and protect electrical circuits), transformers, power distribution systems, motors and drives. The surge in orders shows how the AI build-out is flowing through to industrial companies that rarely make headlines but supply the physical backbone of digital services.

The quarter also shows the tension now running through markets. On one side, orders are at record levels and the backlog of work still to be delivered has grown by more than a third in a year, which gives visibility into future revenue. On the other, investors have become nervous about whether the pace of AI spending can last. ABB's earnings miss, combined with those worries, outweighed the strong orders on the day. Peers Siemens and Schneider Electric also fell by more than 4% that day, suggesting the reaction was about the sector's prospects rather than ABB alone.

Chief Executive Morten Wierod addressed the durability question on the earnings call. He said order intake would vary from quarter to quarter and that the company could not promise record levels every quarter. Management said ABB uses standard protections on large projects, such as advance payments and cancellation clauses, and sees no evidence of customers placing orders artificially early.

For businesses, the figures are a reminder that productivity tools such as AI depend on very old-fashioned inputs: power, cables, cooling and factories to make the gear. Companies planning their own digital investments may face longer waits and higher prices for some electrical equipment when suppliers' order books are this full.

Short-term: ABB enters the final quarter of 2026 with a record backlog and a higher revenue forecast, but its share price has fallen as investors weigh the earnings miss and AI-related risks.

Long-term: If data centre construction continues at its current pace, suppliers of power and automation equipment stand to benefit for years. If AI spending slows, the same companies could see order growth fade, which is why management's comments on order quality are being watched closely. The Mitsubishi Electric joint venture is aimed at growing in Asia-Pacific.

Who is affected: ABB's shareholders and employees; data centre developers and cloud companies that buy its equipment; manufacturers and utilities competing for the same electrical gear; and investors tracking whether the AI investment boom is holding up.

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