Orders for ABB jumped 40% to $12.055 billion during the third quarter, fueled by a doubling in data-center business. Despite this momentum, the company’s net profit fell to $1.18 billion from $1.21 billion a year prior, missing analyst expectations of $1.42 billion. Operational Ebita rose 24% to $2.03 billion, achieving a margin expansion to 20.8%.
In section Market Quotes
ABB Shares Slip as AI Market Turbulence Overshadows Growth
A 5.5% slide in ABB shares Tuesday morning signaled investor anxiety toward AI-linked equities, even as the Swiss engineering giant reported a surge in data-center demand. The drop mirrored a wider retreat across European industrial markets, where concerns over borrowing costs outweighed the company's upbeat quarterly performance and raised annual guidance.
Management raised its full-year guidance for the third time this year, projecting revenue growth in the low-teens percentage range. Beyond earnings, ABB announced a $495 million investment to acquire a controlling stake in a low-voltage power distribution business from Japan’s Mitsubishi Electric. This joint venture provides an option for full ownership, aimed at deepening the firm's footprint across Asia-Pacific markets.
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