What ABB’s latest results and guidance tell you
ABB (SWX:ABBN) has drawn fresh attention after reporting second quarter 2026 results, updating its share buyback, and issuing guidance that outlines expected growth in comparable revenues and a positive book to bill ratio.
For the quarter ended June 30, 2026, ABB reported revenue of US$9,475 million compared with US$8,295 million a year earlier. Net income was US$1,231 million, while basic earnings per share from continuing operations came in at US$0.66.
On a diluted basis, earnings per share from continuing operations were also US$0.66. Including all operations, basic earnings per share were US$0.68 and diluted earnings per share were US$0.68, compared with US$0.63 in the prior year period.
Looking at the first half of 2026, ABB reported revenue of US$18,209 million versus US$15,677 million in the same period a year ago. Net income for the six months was US$2,555 million compared with US$2,253 million a year earlier.
Basic earnings per share from continuing operations for the six months were US$1.39, with diluted earnings per share at the same level. Including all operations, basic earnings per share were US$1.41 and diluted earnings per share were US$1.40, both compared with US$1.23 in the prior year period.
See our latest analysis for ABB.
ABB’s latest earnings, guidance for low double digit comparable revenue growth and the recently completed US$286 million share buyback have come alongside a 29.33% year to date share price return and 53.85% 1 year total shareholder return. However, the 30 day share price return is down 9.07%, hinting that shorter term momentum has cooled after strong multi year gains, including a 175.62% 5 year total shareholder return.
If you are looking beyond ABB in electrification and automation, this is a good moment to see what else is moving in 33 power grid technology and infrastructure stocks
After ABB’s strong multi year run, a 9.07% pullback over the past month and a share price close to analyst targets puts the spotlight on one thing: how much upside the current valuation still leaves on the table.
Most Popular Narrative: 2.2% Overvalued
ABB’s most followed narrative points to a fair value of CHF77.53, slightly below the last close at CHF79.20, which puts a modest premium under the microscope.
Record-high order backlog ($25 billion), broad-based order growth across regions, and multi-year service contracts in process automation provide strong forward earnings visibility and support for sustained revenue and margin expansion over the medium to long term.
Want to see what kind of revenue path and margin profile needs to materialise for ABB to justify that premium pricing? The narrative leans on steady growth, richer profitability and a future earnings multiple that is usually reserved for higher growth electrical peers, all wired into a detailed cash flow view that you can inspect line by line.
Result: Fair Value of CHF77.53 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, ABB’s narrative can be challenged if weakness in key end markets persists, or if rising competition in areas like robotics puts pressure on margins and pricing.
Find out about the key risks to this ABB narrative.
Next Steps
With ABB’s mixed signals on valuation and recent share price moves, this is a good time to review the data directly and decide whether the current sentiment matches your own expectations. You can then see what investors are highlighting in its 3 key rewards
Looking for more investment ideas beyond ABB?
If ABB has sharpened your focus on opportunities in electrification and automation, consider broadening your watchlist so you are not relying on a single story.
- Target stability first by scanning 292 resilient stocks with low risk scores that may help reduce portfolio volatility while still keeping you engaged in the market.
- Hunt for quality at a discount with 231 high quality undervalued stocks that combine solid fundamentals with prices that currently sit below their estimated worth.
- Spot potential future standouts early through the screener containing 512 high quality undiscovered gems, before they attract broader market attention and tighter pricing.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com