ABB Reports Record Quarterly Orders on Surging U.S. and Data Center Demand

ABB Ltd. (SIX: ABBN) announced a record-setting quarter on Thursday, with total orders rising 14% year-on-year and orders from the United States — its largest market — surging 37%. The company attributed the exceptional performance to a combination of large-scale project wins and increased investment by customers in automation and electrification technologies.

CEO Morten Wierod emphasized that the growth in U.S. orders was not driven by pre-emptive buying due to tariff concerns, stating that approximately 80% of ABB’s products sold in the U.S. are manufactured domestically. This local production footprint shields the company from the impact of U.S. trade policy changes, according to Wierod, who added, “There is no point pre-buying because we will not be hit by tariffs.”

The second quarter also saw ABB’s data center segment expand significantly, with order growth estimated in the range of 10% to 20%. Demand is being fueled by rising electricity consumption from AI-driven data centers as well as other industrial sectors. Wierod noted that “demand for electricity is going up quickly,” reflecting a broader trend in energy-intensive digital infrastructure.

Core operating income rose 9% to $1.71 billion for the quarter ended June 30, 2025, surpassing analyst expectations of $1.65 billion. Net income reached $1.15 billion, slightly ahead of the $1.12 billion projected in the company’s consensus estimates. Revenue increased 8% year-over-year to $8.90 billion, outperforming forecasts of $8.72 billion. ABB’s stock gained 7% in mid-morning trading on the Zurich exchange following the earnings release.

The company’s robotics division was the only segment affected by trade-related uncertainty, as automotive clients delayed investment decisions pending clarity on import duty policies. Nonetheless, ABB continues to benefit from structural tailwinds, especially in the data center and electrification markets. Approximately half of ABB’s data center business is based in the United States, with 30–35% located across Asia, Africa, and the Middle East, and the remainder in Europe.

The strong quarterly performance aligns with a broader wave of AI and clean energy investment initiatives announced recently by U.S. corporations, part of an ongoing strategy supported by President Donald Trump to sustain America’s leadership in emerging technology sectors.