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ABB Ltd
(OTC:ABBNY)
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Rating:70Outperform
Price Target:
$106.00
â–²(9.38% Upside)
Action:Reiterated
Date:07/17/26
The score is driven primarily by strong underlying financial performance (healthy margins and free cash flow) and a constructive earnings outlook with raised FY guidance and solid order/backlog momentum. Offsetting factors are weaker near-term technicals (below short-term moving averages with soft momentum) and a relatively rich valuation (high P/E with a modest dividend yield).
Positive Factors
Strong profitability & margins
Sustained high gross and operating margins reflect durable pricing power, product mix and operational discipline across electrification and automation. Margin expansion versus 2022 implies structural efficiency gains that support reinvestment, resilience in downturns, and steady operating cash generation.
Negative Factors
Automation order volatility
A meaningful YOY decline in Automation orders highlights dependence on lumpy, large project bookings and prior-year comparables. This makes top-line cadence uneven and complicates forecasting, limiting the predictability of margins and cash conversion in a business that benefits from steady, recurring project flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability & margins
Sustained high gross and operating margins reflect durable pricing power, product mix and operational discipline across electrification and automation. Margin expansion versus 2022 implies structural efficiency gains that support reinvestment, resilience in downturns, and steady operating cash generation.
Read all positive factors
ABB Ltd Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyABB Ltd (ABBNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$176.18B
Dividend Yield1.22%
Average Volume (3M)138.06K
Price to Earnings (P/E)36.0
Beta (1Y)1.10
Revenue Growth7.92%
EPS Growth20.89%
CountryUS
Employees110,970
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)2.77
Shares Outstanding1,823,154,400
10 Day Avg. Volume250,558
30 Day Avg. Volume138,059
Financial Highlights & Ratios
PEG Ratio1.32
Price to Book (P/B)8.40
Price to Sales (P/S)4.07
P/FCF Ratio30.25
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$90.00Price Target Upside-7.13% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)3.35
Revenue Forecast (FY)$37.94B
ABB Ltd Business Overview & Revenue Model
Company Description
ABB Ltd, established in 1883 and headquartered in Zurich, Switzerland, operates as a global technology pioneer, delivering electrification, automation, robotics, and motion products and solutions. The company caters to a diverse international clie...
How the Company Makes Money
ABB makes money primarily by selling industrial and electrical equipment, automation systems, and associated software and services to business and public-sector customers worldwide. Its revenue model is a mix of (1) product and system sales—such a...
ABB Ltd Earnings Call Summary
Earnings Call Date:Jul 16, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 20, 2026
Earnings Call Sentiment Positive
The call was broadly positive: ABB reported record orders, revenues and backlog, delivered solid earnings growth and margin expansion, strengthened cash generation, raised FY revenue guidance, and announced a meaningful strategic M&A move (Rotork) that expands the Automation portfolio. Notable headwinds include FX/commodity derivative impacts on gross margin, special items (~$130m), margin pressure in Motion (partly from the Gamesa Electric acquisition) and a year-on-year decline in Automation orders (driven by prior-year comparables). Management provided clear mitigation plans (pricing acceleration, efficiency actions, capacity additions, and guidance that margins should improve sequentially), and e-mobility losses are narrowing with a path to break-even. Overall, the positive operational momentum, upgraded guidance, and strategic M&A pipeline outweigh the listed challenges.Positive Updates
Record Quarterly Orders and Revenues
Orders reached about $12.0 billion in Q2, a comparable increase of 28%. Revenues were a record $9.5 billion, up 12% on a comparable basis, with positive book-to-bill of 1.27 and backlog at a record $30 billion (up 28% comparable).
Negative Updates
Automation Orders Decline Year-on-Year
Automation orders declined 14% year-on-year (despite being sequentially stable at ~$2.5 billion), driven by a very tough prior-year comparable that included a ~$600 million single booking.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Orders and Revenues
Orders reached about $12.0 billion in Q2, a comparable increase of 28%. Revenues were a record $9.5 billion, up 12% on a comparable basis, with positive book-to-bill of 1.27 and backlog at a record $30 billion (up 28% comparable).
Read all positive updates
Company Guidance
ABB raised 2026 guidance to "low double‑digit to low‑teens" comparable revenue growth and said Operational EBITA margin should improve versus last year (even excluding the Q1 2026 real‑estate gain); for Q3 the company expects low‑ to mid‑teens comparable revenue growth year‑on‑year and a sequential improvement in Operational EBITA margin. By business area, Electrification expects Q3 comparable growth at least similar to Q2 (Q2 comp growth 19% and Operational EBITA margin 24.9%) with margin improvement from 24.9%; Motion expects mid‑to‑high single‑digit Q3 comparable revenue growth with margin broadly similar to Q2 (18.5%); Automation expects mid‑single‑digit Q3 comparable revenue growth and year‑on‑year margin improvement (Q2 margin 15.4%). Management also reaffirmed a plan to improve full‑year free cash flow versus 2025's $4.6bn, and noted the Rotork offer (~$5.5bn, EV/sales ~5.3x, EV/EBITDA ~19.5x pre‑synergies) is expected to close H1 2027 and be EPS‑accretive in year two.ABB Ltd Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 36.31B | 33.22B | 32.85B | 32.23B | 29.45B | 28.95B |
| Gross Profit | 14.55B | 13.64B | 12.27B | 11.21B | 9.71B | 9.47B |
| EBITDA | 7.36B | 7.12B | 6.13B | 5.83B | 4.34B | 6.83B |
| Net Income | 5.03B | 4.73B | 3.94B | 3.75B | 2.48B | 4.55B |
Balance Sheet | ||||||
| Total Assets | 45.74B | 44.88B | 40.29B | 40.94B | 39.15B | 40.26B |
| Cash, Cash Equivalents and Short-Term Investments | 5.86B | 6.62B | 5.66B | 5.82B | 4.88B | 5.33B |
| Total Debt | 8.98B | 9.09B | 7.71B | 8.74B | 8.90B | 6.59B |
| Total Liabilities | 29.33B | 28.24B | 25.30B | 26.79B | 25.88B | 24.30B |
| Stockholders Equity | 15.90B | 16.09B | 14.42B | 13.41B | 12.78B | 15.58B |
Cash Flow | ||||||
| Free Cash Flow | 4.85B | 4.47B | 3.83B | 3.52B | 525.00M | 2.51B |
| Operating Cash Flow | 5.91B | 5.47B | 4.67B | 4.29B | 1.29B | 3.33B |
| Investing Cash Flow | -1.26B | -2.39B | -725.00M | -1.61B | 981.00M | 2.31B |
| Financing Cash Flow | -4.00B | -2.88B | -3.33B | -2.90B | -2.39B | -4.97B |
ABB Ltd Technical Analysis
Neutral
96.91
Price Trends
104.98
Negative
96.99
Positive
86.18
Positive
Market Momentum
-1.15
Positive
40.00
Neutral
11.80
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABBNY, the sentiment is Neutral. The current price of 96.91 is below the 20-day moving average (MA) of 104.88, below the 50-day MA of 104.98, and above the 200-day MA of 86.18, indicating a neutral trend. The MACD of -1.15 indicates Positive momentum. The RSI at 40.00 is Neutral, neither overbought nor oversold. The STOCH value of 11.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ABBNY.
ABB Ltd Risk Analysis
ABB Ltd disclosed 27 risk factors in its most recent earnings report. ABB Ltd reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ABB Ltd Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $7.17B | 25.07 | 15.60% | 0.67% | 3.70% | -14.17% | |
78 Outperform | $25.05B | 50.96 | 13.36% | 0.84% | 34.18% | -15.12% | |
76 Outperform | $9.99B | 21.60 | 15.71% | 0.18% | 10.50% | 18.92% | |
76 Outperform | $25.82B | 28.73 | 24.45% | 1.18% | 7.18% | 14.32% | |
75 Outperform | $111.22B | 70.97 | 42.06% | 0.11% | 28.95% | 130.56% | |
70 Outperform | $176.18B | 36.04 | 33.07% | 0.80% | 7.92% | 20.89% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.