Bernstein ABB Ltd (ABBN.SW) Q2'26 Preview: Electrification Beat Likely Continues
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Bernstein published a Q2 2026 preview for ABB on June 25, 2026, suggesting the Electrification (EL) segment will likely continue its pattern of exceeding expectations. The report projects total revenue growth of approximately 5% year-over-year, with the Electrification business growing around 8% and operating at an estimated margin of 20.5%, well above the company average. Bernstein maintains an Outperform rating with a target price of CHF 60, based on a 2026 estimated price-to-earnings multiple of 22 times.
Electrification orders are expected to grow roughly 10%, driven by robust demand from data center and power grid investments, while total company orders should increase about 4%. Conversely, the Industrial Automation (IA) division faces headwinds, with revenue projected to decline 2%. The Motion segment should see 3% growth with stable margins, while Robotics revenue may fall approximately 5% with margin pressure.
Free cash flow is forecast at USD 800 million, roughly flat year-over-year. The investment thesis centers on sustained Electrification outperformance offsetting cyclical softness in automation and robotics. The overall revenue trajectory remains supported by macro-level demand for electrification infrastructure. Bernstein's positive stance reflects confidence that Electrification's momentum will persist through the quarter, though investors should monitor actual results against expectations for signs of broader segment divergence.
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