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ABB Ltd (CH:ABBN)
:ABBN

ABB Ltd (ABBN) AI Stock Analysis

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CH:ABBN

ABB Ltd

(ABBN)

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Outperform 78 (OpenAI - 4o)
Rating:78Outperform
Price Target:
CHF68.00
▲(16.00% Upside)
ABB Ltd's strong financial performance and positive earnings call sentiment are the primary drivers of its high score. Technical indicators support a positive outlook, although the valuation suggests the stock may be somewhat overvalued. The strategic sale of the Robotics division is expected to streamline operations, further enhancing the company's position.
Positive Factors
Strong Order Growth
The 9% increase in orders across all business areas indicates robust demand and market strength, supporting future revenue stability and growth.
Operational Efficiency
Improved operational EBITA and margin growth reflect effective cost management and operational efficiency, enhancing long-term profitability.
Strategic Divestment
Divesting the Robotics division will streamline operations and allow ABB to focus on core areas, potentially improving strategic focus and resource allocation.
Negative Factors
Weakness in China
The decline in orders from China, a major market, could impact ABB's growth prospects in the region and indicates potential market challenges.
Challenges in Machine Automation
Struggles in the Machine Automation division highlight operational inefficiencies and could hinder profitability if not addressed.
E-mobility Loss
Losses in the E-mobility segment suggest challenges in achieving profitability, which may affect overall financial performance if persistent.

ABB Ltd (ABBN) vs. iShares MSCI Switzerland ETF (EWL)

ABB Ltd Business Overview & Revenue Model

Company DescriptionABB Ltd engages in manufacture and sale of electrification, automation, robotics, and motion products for customers in utilities, industry and transport, and infrastructure in Switzerland and internationally. Its Electrification segment provides electric vehicle charging infrastructure, renewable power solutions, modular substation packages, distribution automation products, switchboard and panelboards, switchgear, UPS solutions, circuit breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems, and intelligent home and building solutions. The company's Robotics & Discrete Automation segment offers industrial robots, software, robotic solutions and systems, field services, spare parts, and digital services. This segment also offers solutions based on its programmable logic controllers, industrial PCs, servo motion, transport system, and machine vision. Its Motion segment manufactures and sells drives, motors, generators, traction converters, and mechanical power transmission products that are driving the low-carbon future for industries, cities, infrastructure, and transportation. The company's Process Automation segment provides process and discrete control technologies, advanced process control software and manufacturing execution systems, sensing, measurement and analytical instrumentation, marine propulsion systems, and large turbochargers. In addition, this segment offers remote monitoring, preventive maintenance, asset performance management, emission monitoring, and cybersecurity services. It serves aluminum, automotive, buildings and infrastructure, cement, channel partners, chemical, data centers, food and beverage, process automation, life sciences, marine and ports, metals, mining, oil and gas, ports, power generation, printing, pulp and paper, railway, smart cities, water, and wind power industries. The company was founded in 1883 and is headquartered in Zurich, Switzerland.
How the Company Makes MoneyABB generates revenue through several key streams: the Electrification segment, which provides products and solutions for electrical distribution and control, contributes significantly to its earnings. The Robotics & Discrete Automation segment focuses on industrial robots and advanced automation solutions, serving sectors like automotive, electronics, and logistics. The Industrial Automation segment offers process automation and control systems that enhance operational efficiency. Additionally, ABB has strategic partnerships and collaborations with other companies, enhancing its technology offerings and expanding its market reach. The company also invests in digital technologies and services, creating recurring revenue through software and analytics solutions, further diversifying its income sources.

ABB Ltd Earnings Call Summary

Earnings Call Date:Oct 16, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Jan 29, 2026
Earnings Call Sentiment Positive
ABB reported strong order growth and record revenues, with significant improvements in cash flow and operational EBITA. The company sees continued strong demand in electrification and data centers but faces challenges in China and Machine Automation. The sale of the Robotics division to SoftBank is expected to further streamline operations.
Q3-2025 Updates
Positive Updates
Strong Order Growth
Orders increased by 9% comparable, reaching $9.1 billion, with all four business areas showing improvement in orders ranging from 4% to 17%.
Record Revenue and Free Cash Flow
Revenues hit an all-time high of $9.1 billion, up 9% like-for-like. Free cash flow improved by 32% to $1.6 billion, driven by operational performance and trade net working capital.
Operational EBITA Improvement
Operational EBITA improved by 12%, with a margin increase of 20 basis points to 19.2%. EPS was up by 29% to $0.66.
Electrification and Data Center Growth
Orders in Electrification were up 10% on a comparable basis, with data centers showing double-digit growth.
Successful Robotics Division Sale
ABB announced the sale of its Robotics division to SoftBank Group, expected to close in the second half of 2026.
Negative Updates
Weakness in China
AMEA orders declined by 1%, with a 12% drop in China, attributed to the weakness in the residential segment.
Challenges in Machine Automation
Machine Automation division is at a breakeven level, struggling with low volumes and under-absorption costs.
E-mobility Loss
E-mobility reported a loss of $26 million, though improvements are expected in Q4.
Company Guidance
In the call, ABB provided guidance that highlighted strong performance metrics for the third quarter of fiscal year 2025. The company reported a significant 9% increase in orders, reaching $9.1 billion, with all four business areas showing order growth between 4% and 17%. Revenue also hit an all-time high of $9.1 billion, up 9% like-for-like, driven by improvements across short- and long-cycle businesses. The book-to-bill ratio stood at 1.01x, contributing to a record order backlog of $25.1 billion. Geographically, the Americas, particularly the U.S., showed robust order growth at a remarkable 27%, while Europe experienced a 9% increase. Despite a 1% decline in the AMEA region due to weakness in China, India's base orders rose by 9%. The company achieved a 12% improvement in operational EBITA, with a margin increase of 20 basis points to 19.2%, and a 29% increase in EPS to $0.66. ABB also announced its decision to sell the Robotics division to SoftBank Group, which will be reported in discontinued operations from Q4 2025. Looking ahead, ABB expects mid-single-digit comparable revenue growth for Q4, with an operational EBITA margin at the higher end of the 16% to 19% range for the full year.

ABB Ltd Financial Statement Overview

Summary
ABB Ltd exhibits a robust financial profile with strong profitability, efficient operations, and effective cash management. The company maintains a healthy balance between growth and stability, with manageable leverage and solid equity returns.
Income Statement
85
Very Positive
ABB Ltd demonstrates strong income statement performance with consistent revenue growth and robust profitability metrics. The TTM Gross Profit Margin of 39.42% and Net Profit Margin of 12.89% indicate efficient cost management and solid profitability. The EBIT and EBITDA margins are also healthy, reflecting operational efficiency. Revenue growth is steady, supporting a positive outlook.
Balance Sheet
78
Positive
The balance sheet shows a stable financial position with a manageable Debt-to-Equity Ratio of 0.63 in the TTM, indicating prudent leverage. The Return on Equity is impressive at 31.17%, showcasing effective use of equity to generate profits. The Equity Ratio of 34.29% suggests a solid equity base, although there is room for improvement in asset utilization.
Cash Flow
82
Very Positive
Cash flow analysis reveals strong free cash flow growth of 10.84% in the TTM, highlighting effective cash generation. The Operating Cash Flow to Net Income Ratio is 0.32, indicating good cash conversion from profits. The Free Cash Flow to Net Income Ratio of 0.82 reflects a healthy cash flow position, supporting ongoing operations and potential investments.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue34.47B32.85B32.23B29.45B28.95B26.13B
Gross Profit13.59B12.27B11.21B9.71B9.47B7.88B
EBITDA7.10B6.13B5.83B4.34B6.83B2.67B
Net Income4.45B3.94B3.75B2.48B4.55B5.15B
Balance Sheet
Total Assets43.65B40.36B40.94B39.15B40.26B41.09B
Cash, Cash Equivalents and Short-Term Investments5.83B5.64B5.82B4.88B5.33B5.39B
Total Debt9.39B7.81B8.74B8.55B6.48B7.12B
Total Liabilities28.13B25.30B26.79B25.88B24.30B25.09B
Stockholders Equity14.97B14.49B13.41B12.78B15.58B15.69B
Cash Flow
Free Cash Flow4.13B3.83B3.52B525.00M2.51B999.00M
Operating Cash Flow5.06B4.67B4.29B1.29B3.33B1.69B
Investing Cash Flow-2.17B-725.00M-1.61B981.00M2.31B6.76B
Financing Cash Flow-2.20B-3.33B-2.90B-2.39B-4.97B-8.18B

ABB Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price58.62
Price Trends
50DMA
57.80
Positive
100DMA
56.61
Positive
200DMA
51.71
Positive
Market Momentum
MACD
0.34
Negative
RSI
55.12
Neutral
STOCH
34.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:ABBN, the sentiment is Positive. The current price of 58.62 is above the 20-day moving average (MA) of 57.84, above the 50-day MA of 57.80, and above the 200-day MA of 51.71, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 55.12 is Neutral, neither overbought nor oversold. The STOCH value of 34.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:ABBN.

ABB Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
CHF106.75B28.5231.76%1.54%1.93%11.14%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
49
Neutral
CHF325.59M-31.49-13.64%-281.19%
47
Neutral
CHF1.48B-5.05-9.35%2.23%-32.13%-386.99%
45
Neutral
CHF329.29M49.825.19%-11.90%-78.34%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CH:ABBN
ABB Ltd
58.62
10.37
21.50%
CH:KOMN
Komax Holding AG
63.50
-49.50
-43.81%
CH:LAND
Landis+Gyr Group AG
51.50
-3.95
-7.12%
CH:LEHN
LEM Holding SA
289.00
-450.00
-60.89%

ABB Ltd Corporate Events

ABB Ltd Continues Strategic Share Buyback Program
Dec 4, 2025

ABB Ltd announced the repurchase of 297,661 shares between November 27 and December 3, 2025, as part of its ongoing share buyback program initiated in February 2025. This initiative aligns with regulatory standards and aims to enhance shareholder value, with a total of 19,441,401 shares repurchased under the program to date. The buyback is executed independently by a bank on the SIX Swiss Exchange, indicating ABB’s commitment to strategic financial management and potentially impacting its market positioning positively.

ABB Ltd Executes Share Buyback Program
Nov 27, 2025

ABB Ltd has repurchased 344,962 shares as part of its ongoing share buyback program, which commenced on February 7, 2025. This initiative is aligned with Swiss and EU regulations, and the transactions were executed by a bank on the SIX Swiss Exchange. The total number of shares repurchased under this program has reached 19,143,740. This buyback effort reflects ABB’s strategic focus on optimizing its capital structure and enhancing shareholder value.

ABB Ltd Continues Strategic Share Buyback Program
Nov 20, 2025

ABB Ltd announced the repurchase of 215,192 shares from November 13 to November 19, 2025, as part of its ongoing share buyback program initiated in February 2025. This strategic move, conducted under Swiss and EU regulations, reflects ABB’s commitment to enhancing shareholder value and optimizing capital structure, with a total of 18,798,778 shares repurchased since the program’s inception.

ABB Ltd Sets Ambitious Financial Targets at Capital Markets Day 2025
Nov 18, 2025

ABB Ltd announced its updated financial targets during its Capital Markets Day 2025, focusing on electrification and automation with three business areas. The company aims to achieve an operational EBITA margin of 18-22 percent and a ROCE target of over 20 percent, reflecting strong growth expectations. ABB’s strategy includes organic and acquired revenue growth, emphasizing bolt-on deals and larger transactions. The company is committed to sustainability and aims to support the decarbonization of industries through its technologies. ABB is well-positioned at the center of key megatrends, focusing on productivity, efficiency, and maintaining a strong investment-grade rating.

ABB Ltd Advances Share Buyback Program with Recent Purchases
Nov 13, 2025

ABB Ltd announced the repurchase of 273,000 shares from November 6 to November 12, 2025, as part of its ongoing share buyback program initiated in February 2025. This strategic move, conducted in compliance with relevant Swiss and EU regulations, aims to optimize the company’s capital structure and potentially enhance shareholder value. The total number of shares repurchased under the current program has reached 18,583,586, reflecting ABB’s commitment to its financial strategy and market positioning.

ABB Ltd Continues Strategic Share Buyback Program
Nov 7, 2025

ABB Ltd has announced the repurchase of 258,413 shares as part of its ongoing share buyback program, conducted between October 30 and November 5, 2025. This initiative, aligned with Swiss and EU financial regulations, is part of a broader strategy to optimize capital structure and enhance shareholder value, having repurchased a total of 18,310,586 shares since February 2025. The buybacks are executed independently by a bank on the SIX Swiss Exchange, reflecting ABB’s commitment to strategic financial management.

ABB Ltd Continues Strategic Share Buyback Program
Oct 30, 2025

ABB Ltd has repurchased 189,053 shares between October 23 and October 29, 2025, as part of its ongoing share buyback program initiated in February 2025. This strategic move is conducted in compliance with various financial regulations and aims to optimize shareholder value. The buyback process is managed independently by a bank on the SIX Swiss Exchange, contributing to a total of 18,052,173 shares repurchased since the program’s inception. This initiative reflects ABB’s commitment to enhancing shareholder returns and solidifying its market position.

ABB Ltd Advances Share Buyback Program
Oct 23, 2025

ABB Ltd announced the repurchase of 254,774 shares between October 16 and October 22, 2025, as part of its ongoing share buyback program initiated in February 2025. This strategic move is conducted in compliance with Swiss and EU financial regulations, and aims to optimize shareholder value by reducing the number of outstanding shares, potentially enhancing earnings per share and market confidence.

ABB Ltd Completes Share Buyback of 240,065 Shares
Oct 16, 2025

ABB Ltd announced the repurchase of 240,065 shares between October 9 and October 15, 2025, as part of its ongoing share buyback program initiated in February 2025. This strategic move is conducted in compliance with relevant Swiss and EU financial regulations, aiming to optimize shareholder value and reinforce ABB’s market position. The buybacks are executed independently by a bank on the SIX Swiss Exchange, and the cumulative shares repurchased under this program now total 17,608,346.

ABB Ltd Reports Strong Q3 2025 Results and Strategic Divestment
Oct 16, 2025

ABB Ltd reported strong financial results for Q3 2025, with significant growth in orders and revenues, improved margins, and robust free cash flow. The company announced a strategic divestment of its Robotics division to SoftBank Group, reflecting its strengths in technology and industry expertise. ABB is investing $210 million in North America to expand its Electrification business, supporting long-term demand in data centers and grid modernization. The company also announced a change in its executive team, with Christian Nilsson succeeding Timo Ihamuotila as CFO in February 2026.

ABB Ltd Reports Strong Q3 2025 Results and Strategic Divestment of Robotics Division
Oct 16, 2025

ABB Ltd reported strong financial results for the third quarter of 2025, with significant growth in order intake and sales, improved margins, and robust cash flow. The company announced a strategic shift by selling its Robotics Division to SoftBank Group, reflecting its focus on core business areas. ABB also plans to invest $210 million in North America to enhance its Electrification business, signaling confidence in long-term demand for its technologies. The transition to three business areas and leadership changes, including a new CFO, highlight ABB’s ongoing efforts to streamline operations and strengthen market positioning.

ABB Appoints Christian Nilsson as New CFO
Oct 16, 2025

ABB has announced the appointment of Christian Nilsson as the new Chief Financial Officer, effective February 1, 2026, succeeding Timo Ihamuotila. This leadership change is part of ABB’s ongoing efforts to maintain its strong market position in electrification and automation, ensuring a smooth transition and continuity in its strategic focus. Nilsson, who has been with ABB since 2017, brings extensive international finance experience, which is expected to support ABB’s continued success and operational efficiency.

ABB Ltd Continues Strategic Share Buyback Program
Oct 9, 2025

ABB Ltd announced the repurchase of 245,606 shares between October 2 and October 8, 2025, as part of its ongoing share buyback program initiated in February 2025. This strategic move, carried out on the SIX Swiss Exchange, aligns with regulatory standards and is part of a larger effort that has seen the company buy back over 17 million shares to date. This buyback initiative is likely to impact ABB’s market positioning by potentially increasing shareholder value and demonstrating confidence in the company’s financial health.

ABB Ltd Announces Share Buyback Progress
Oct 2, 2025

ABB Ltd announced the repurchase of 238,201 shares between September 25 and October 1, 2025, as part of its ongoing share buyback program initiated in February 2025. This buyback is conducted under Swiss and EU financial regulations, with trading decisions made independently by a bank on a separate line on the SIX Swiss Exchange. The total number of shares repurchased under the current program has reached 17,122,675, reflecting ABB’s strategic focus on enhancing shareholder value and market positioning.

ABB Ltd Executes Share Buyback to Enhance Shareholder Value
Sep 25, 2025

ABB Ltd announced the repurchase of 222,564 shares as part of its ongoing share buyback program, which commenced in February 2025. The buyback is conducted in compliance with relevant Swiss and EU regulations, with trading decisions made independently by a bank. This initiative reflects ABB’s strategic focus on enhancing shareholder value and optimizing capital structure, potentially impacting its market positioning and stakeholder interests.

ABB Ltd Advances Share Buyback Program with Recent Repurchases
Sep 18, 2025

ABB Ltd announced the repurchase of 287,053 shares between September 11 and September 17, 2025, as part of its ongoing share buyback program initiated in February 2025. This initiative, conducted in compliance with relevant financial regulations, underscores ABB’s strategic focus on optimizing shareholder value and reflects its robust financial health. The buyback program has seen the acquisition of over 16 million shares to date, highlighting ABB’s commitment to enhancing its market position and delivering value to stakeholders.

ABB Ltd Advances Share Buyback Program with Recent Purchases
Sep 11, 2025

ABB Ltd has repurchased 301,979 shares between September 4 and September 10, 2025, as part of its ongoing share buyback program initiated in February 2025. This initiative is conducted under Swiss and EU financial regulations, with the total shares repurchased since February reaching 16,374,857. The buyback is executed through a bank on the SIX Swiss Exchange, which independently manages the timing of purchases. This strategic move is likely aimed at enhancing shareholder value and optimizing capital structure, reflecting ABB’s commitment to financial discipline and shareholder returns.

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.Date of analysis: Nov 04, 2025