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ABB Ltd
(ABBN)
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Rating:70Outperform
Price Target:
CHF86.00
â–²(7.50% Upside)
Action:Reiterated
Date:07/17/26
The score is driven primarily by strong financial performance (healthy margins, high ROE, and solid free cash flow conversion) and a positive earnings outlook with raised guidance and strong order/backlog trends. These positives are tempered by a softer near-term technical setup (below shorter-term moving averages) and a relatively expensive valuation (high P/E with modest dividend yield).
Positive Factors
Margin and cash generation
High trailing margins and strong free cash flow conversion indicate durable operating efficiency and high earnings quality. Persistent FCF covering most net income supports reinvestment, dividends, debt service and M&A without relying on volatile external funding across the business cycle.
Negative Factors
Acquisition timing and near‑term costs
Large M&A like Rotork is structurally strategic but financing, regulatory approvals and integration delay synergies. Near‑term acquisition costs and cash deployment compress margins and postpone earnings accretion, adding execution and approval risk over the coming 12–18 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin and cash generation
High trailing margins and strong free cash flow conversion indicate durable operating efficiency and high earnings quality. Persistent FCF covering most net income supports reinvestment, dividends, debt service and M&A without relying on volatile external funding across the business cycle.
Read all positive factors
ABB Ltd (ABBN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF142.91B
Dividend Yield1.18%
Average Volume (3M)2.34M
Price to Earnings (P/E)35.5
Beta (1Y)0.97
Revenue Growth-0.68%
EPS Growth11.21%
CountryCH
Employees111,900
SectorGeneral
Sector StrengthN/A
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)2.77
Shares Outstanding1,823,154,400
10 Day Avg. Volume2,908,384
30 Day Avg. Volume2,335,047
Financial Highlights & Ratios
PEG Ratio1.30
Price to Book (P/B)8.46
Price to Sales (P/S)4.10
P/FCF Ratio30.45
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF76.22Price Target Upside-4.73% Downside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)3.36
Revenue Forecast (FY)CHF38.04B
ABB Ltd Business Overview & Revenue Model
Company Description
Zurich, Switzerland-headquartered ABB Ltd, established in 1883, operates as a global technology leader. The company specializes in manufacturing and distributing advanced products and integrated solutions across its core areas of electrification, ...
How the Company Makes Money
ABB makes money primarily by selling industrial and electrical equipment, automation systems, and related software and services to customers in utilities, manufacturing, process industries, buildings, data centers, and transportation. Its key reve...
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 highlighted multiple strong operating outturns: record orders and revenues, a materially expanded backlog, double-digit comparable growth in Electrification, clear margin improvement at group level, healthy free cash flow, and an upgraded growth outlook. These positives were balanced against manageable near-term challenges including gross margin headwinds from unrealized FX/commodity derivatives, special charges (~$130m), Motion profitability pressure (partly from an acquired business) and a YoY decline in Automation orders driven by a tough comparable. Strategic M&A (including the Rotork offer) is presented as value-accretive over time but carries near-term costs and will only contribute materially after closing (expected H1 2027). Overall, the company appears to be performing strongly with issues characterized as operational/transitionary rather than structural.Positive Updates
Record Orders and Revenues
Group orders hit about $12.0 billion in Q2 (first time ~ $12B in one quarter) with a comparable increase of 28%. Revenues were a record $9.5 billion, up 12% on a comparable basis. Book-to-bill was positive at 1.27 and backlog reached a record $30 billion, up 28% comparable.
Negative Updates
Gross Margin Pressure from FX/Commodities
Group gross margin declined by ~50 basis points year-on-year, primarily driven by unrealized derivatives on FX and commodities and a remaining price-cost gap in parts of the business.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Orders and Revenues
Group orders hit about $12.0 billion in Q2 (first time ~ $12B in one quarter) with a comparable increase of 28%. Revenues were a record $9.5 billion, up 12% on a comparable basis. Book-to-bill was positive at 1.27 and backlog reached a record $30 billion, up 28% comparable.
Read all positive updates
Company Guidance
ABB raised its full‑year revenue guidance to a low double‑digit to low‑teens increase in comparable revenues and said margins should improve versus last year even excluding the Q1 real‑estate gain; for Q3 management expects low‑ to mid‑teens comparable revenue growth year‑on‑year with Operational EBITA margin improving sequentially from Q2 (Q2 Operational EBITA margin was 20.2%). By business area they guided Electrification Q3 comparable growth at least similar to Q2 with EBITA margin to improve from 24.9%, Motion Q3 comparable growth in the mid‑to‑high single‑digit range with EBITA margin roughly similar to Q2 (18.5%), and Automation Q3 comparable revenues to grow mid‑single‑digits with EBITA margin improving year‑on‑year. They reiterated cash ambitions (free cash flow on track to improve on 2025’s $4.6bn; Q2 FCF was $881m), kept e‑mobility losses for the year around ~$50m with a path to a break‑even quarter by year‑end, and noted the planned Rotork acquisition (expected close H1‑2027) would be EPS‑accretive in year two and would add ~3% to ABB revenues (about +12% to Automation), lift automation division EBITDA margin ~120 bps pro‑forma and be priced at ~GBP5.03/share (~$5.5bn, EV/Sales ~5.3x, EV/EBITDA ~19.5x pre‑synergies).ABB Ltd Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
79
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 36.31B | 33.22B | 30.58B | 32.23B | 29.45B | 28.95B |
| Gross Profit | 14.55B | 13.64B | 12.00B | 11.21B | 9.71B | 9.47B |
| EBITDA | 7.70B | 7.12B | 5.76B | 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 | 40.36B | 40.94B | 39.15B | 40.26B |
| Cash, Cash Equivalents and Short-Term Investments | 5.86B | 6.62B | 5.64B | 5.82B | 4.88B | 5.33B |
| Total Debt | 8.98B | 9.09B | 7.72B | 8.74B | 8.55B | 6.48B |
| Total Liabilities | 29.33B | 28.24B | 25.30B | 26.79B | 25.88B | 24.30B |
| Stockholders Equity | 15.90B | 16.09B | 14.49B | 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
Positive
80.00
Price Trends
83.07
Negative
78.20
Positive
69.40
Positive
Market Momentum
-1.11
Negative
51.52
Neutral
78.24
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 80 is below the 20-day moving average (MA) of 80.70, below the 50-day MA of 83.07, and above the 200-day MA of 69.40, indicating a neutral trend. The MACD of -1.11 indicates Negative momentum. The RSI at 51.52 is Neutral, neither overbought nor oversold. The STOCH value of 78.24 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | CHF142.91B | 35.55 | 32.62% | 1.18% | -0.68% | 11.21% | |
66 Neutral | CHF576.55M | 58.43 | 7.42% | ― | -6.27% | 17.54% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
48 Neutral | CHF1.32B | -9.65 | -15.26% | 2.77% | -39.02% | -40.84% | |
44 Neutral | CHF267.65M | -43.14 | ― | ― | -7.68% | -182.03% |
* General Sector Average
CH:ABBN
ABB Ltd
81.66
29.41
56.30%
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57.40
-49.00
-46.05%
CH:LAND
Landis+Gyr Group AG
49.35
-15.07
-23.40%
CH:LEHN
LEM Holding SA
556.00
-66.00
-10.61%
ABB Ltd Corporate Events
ABB expands 2026 share buyback program with additional repurchases
Jul 23, 2026
ABB continued executing its previously announced share buyback program between July 16 and July 22, 2026, repurchasing 360,906 shares on a separate trading line of the SIX Swiss Exchange through an independent bank. The transactions, conducted und...
ABB Expands 2026 Share Buyback to Over 4.2 Million Shares
Jul 16, 2026
ABB Ltd repurchased 57,500 shares between July 9 and July 15, 2026 under its ongoing share buyback program, with transactions executed via a separate trading line on the SIX Swiss Exchange by a bank acting independently within predefined parameter...
ABB posts record Q2 orders and moves to expand automation portfolio with Rotork deal
Jul 16, 2026
ABB reported record second-quarter 2026 orders of $12.0 billion, up 30%, driven by strong demand across customer segments, with revenue rising 14% to $9.5 billion and operational EBITA margin improving to 20.2%. Earnings per share increased 8%, fr...
ABB posts record Q2 orders and boosts automation with $5.5bn Rotork deal
Jul 16, 2026
ABB reported a strong second quarter, with record orders of $12.0 billion, up 30%, and revenues rising 14% to $9.5 billion, driven by broad-based demand and strong execution. Operational EBITA climbed 20% to $1.93 billion, lifting the margin to 20...
ABB to acquire Rotork in $5.5 billion push into intelligent flow control
Jul 16, 2026
ABB has agreed a recommended cash offer of 503 pence per share to acquire UK-listed Rotork, a leading provider of intelligent flow control solutions and electric actuators, in a deal valuing the target at about $5.5 billion. The transaction will f...
ABB to buy Rotork in $5.5bn deal to boost automation and flow control
Jul 16, 2026
ABB has agreed an all-cash deal to acquire Rotork, a UK-based specialist in intelligent flow control and electric actuators, in a move designed to deepen its automation offering and sharpen its focus on large and complex industrial infrastructure....
ABB expands 2026 share buyback program with additional repurchases
Jul 9, 2026
ABB repurchased 34,035 shares between July 2 and July 8, 2026, under its ongoing share buyback program launched in February 2026, with purchases executed via a separate trading line on the SIX Swiss Exchange by an independent bank within predefine...
ABB expands 2026 share buyback, topping 4.1 million shares
Jul 2, 2026
ABB Ltd continued executing its 2026 share buyback program between June 25 and July 1, repurchasing 55,500 shares on a separate trading line of the SIX Swiss Exchange through an independent bank. The transactions, conducted under Swiss FMIO and EU...
ABB continues 2026 share buyback, lifting total repurchases above 4.1 million shares
Jun 25, 2026
ABB has continued its 2026 share buyback program, repurchasing 38,164 shares between June 18 and June 24 on a separate trading line of the SIX Swiss Exchange through a bank acting independently within preset parameters. The transactions, executed ...
ABB expands 2026 share buyback, surpasses 4 million shares repurchased
Jun 18, 2026
ABB repurchased 96,619 shares between June 11 and June 17, 2026, under its ongoing share buyback program, with trades executed on a separate line of the SIX Swiss Exchange by an independent bank within predefined parameters. The transactions, cond...
ABB advances 2026 buyback with nearly 100,000 more shares repurchased
Jun 11, 2026
ABB has continued executing its 2026 share buyback program, repurchasing 99,400 shares between June 4 and June 10 on a separate trading line of the SIX Swiss Exchange via an independent bank. Over the life of the current program, which began in ea...
ABB Expands 2026 Buyback With 101,000 More Shares Repurchased
Jun 4, 2026
ABB has continued its 2026 share buyback program, repurchasing 101,000 shares between May 28 and June 3 on the SIX Swiss Exchange via an independent bank under Swiss and EU market conduct rules. Over the life of the current program, which began in...
ABB advances 2026 buyback with fresh SIX Swiss Exchange repurchases
May 28, 2026
ABB has continued to execute its 2026 share buyback program, repurchasing 71,534 shares between May 21 and May 27 on a separate trading line of the SIX Swiss Exchange. The transactions, conducted by an independent bank within predefined parameters...
ABB expands 2026 share buyback, repurchases 80,000 shares in May window
May 21, 2026
ABB has repurchased 80,000 of its own shares between May 15 and May 20, 2026, under the share buyback program launched in February 2026, with trades executed via a separate trading line on SIX Swiss Exchange by a bank operating within predefined p...
ABB steps up 2026 share buyback with fresh CHF 7.7 million repurchases
May 14, 2026
ABB has continued its 2026 share buyback program, which is conducted under Swiss and EU safe-harbour rules, as part of its broader capital management strategy in electrification and automation markets. The group, a long-established industrial tech...
ABB advances 2026 buyback with additional 84,500 share repurchases
May 7, 2026
ABB Ltd continued to execute its ongoing share buyback program, repurchasing 84,500 shares on the SIX Swiss Exchange between April 30 and May 6, 2026, via an independent bank trading on a separate line. The purchases, executed under Swiss and EU s...
ABB cuts share count with cancellation of 20.7 million repurchased shares
Apr 30, 2026
ABB Ltd has cancelled 20,744,831 shares previously repurchased under its 2025 share buyback program, reducing the total number of issued shares and votes to 1,823,154,373 from 1,843,899,204. Following the cancellation, ABB now holds 7,576,598 of i...
ABB Accelerates 2026 Share Buyback, Lifts Total to 3.45 Million Shares
Apr 30, 2026
ABB continued to execute its 2026 share buyback program between April 23 and April 29, repurchasing 93,500 shares on the SIX Swiss Exchange via a bank acting on a separate trading line. Transactions complied with Swiss and EU market conduct and sa...
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.