ABB Issues 2026 Outlook and Announces $2 Billion Share Buyback
**ABB CRUSHES Q4 FORECASTS, EYES RECORD 2026 AMID AI & INFRASTRUCTURE BOOM**
Swiss engineering giant ABB has delivered a standout financial performance to close 2025, shattering earnings expectations and signaling strong momentum for the year ahead. Driven by surging demand in artificial intelligence, rail, and marine sectors, the company achieved record-breaking figures and announced a significant return of capital to shareholders.
**Record-Breaking Q4 Performance**
ABB’s fourth-quarter results highlight exceptional operational execution. The company reported a **36% surge in orders** to **$10.3 billion**, marking the first time quarterly bookings have exceeded the $10 billion threshold. Revenue for the period climbed **13%** to **$9.1 billion**, while basic earnings per share jumped **30%** to **$0.70**.
For the full year, ABB posted record revenues of **$33.2 billion** and total orders of **$36.8 billion**. Profitability also improved, with the Q4 operational EBITA margin widening to **17.6%**.
**Strategic Capital Allocation**
Reflecting its robust balance sheet and cash flow generation, ABB announced a new **$2 billion share buyback program**, set to run until January 2027. Additionally, the Board proposed an increased dividend of **CHF 0.94** per share, up from CHF 0.90 the previous year.
**AI and Sector-Specific Catalysts**
The company’s growth is being supercharged by the global AI infrastructure build-out. ABB is capitalizing on the high power requirements of data centers, with partnerships—including collaborations with Nvidia—positioning it as a key supplier for next-generation power systems.
Beyond tech, traditional infrastructure remains a powerhouse. High demand continues across **rail transport, ports, and marine electrification**, contributing to a broad-based book-to-bill ratio of **1.14**, indicating a healthy pipeline of future work.
**Bullish 2026 Outlook**
Looking ahead, ABB projects continued expansion. For the first quarter of 2026, the company anticipates comparable revenue growth in the **7–10%** range. For the full year, guidance targets revenue growth between **6–9%** with further margin improvements.
CEO Morten Wierod emphasized that the company is "positioned in markets with powerful long-term trends," expressing confidence that 2026 will deliver another series of all-time high results. Following the release, ABB shares rallied sharply, reflecting investor optimism in the industrial giant’s trajectory.