ABB is set to kick off earnings season for the European industrial sector, with the company scheduled to report second-quarter results on Thursday. Here is what you need to know:

REVENUE FORECAST: The Switzerland-based technology company is expected to book revenue of $9.47 billion for the period ended June, according to consensus estimates provided by the company. The company reported $8.295 billion in the year-earlier period.

EARNINGS FORECAST: Analysts forecast operational earnings before interest, taxes and amortization of $1.88 billion compared with $1.60 billion the prior year.

NET PROFIT FORECAST: Net profit is seen at $1.32 billion, according to the same consensus. ABB reported $1.15 billion a year earlier.

ABB shares trade broadly flat at 83.64 Swiss francs and are up 41% year to date.

WHAT TO WATCH:

--GROWTH DRIVERS: The capital goods sector looks increasingly positive, with demand from data centers remaining underestimated across major industrial players, Bank of America analysts said. Electrification is expected to remain ABB's standout division, according to J.P. Morgan and Bernstein analysts. Meanwhile, Berenberg analysts say that the automation division should be well positioned to benefit from a gradual recovery in industrial automation, supported by improving order trends and signs of stabilization in China. While macroeconomic and geopolitical risks could slow the recovery, the analysts expect these structural growth drivers to underpin ABB's medium-term outlook.

--VALUATION: ABB's main constraint is its high valuation, Barclays analysts said. The company has a strong operational track record and tends to exceed expectations, which has afforded it an elevated valuation, the analysts said. While this increases the downside risk should expected earnings fail to materialize, future share performance may increasingly depend on how effectively management deploys its significant balance sheet capacity, they say. The success of deploying its available capital will likely determine how ABB's valuation evolves moving forward, they add.

--BROADER EXPECTATIONS: Analysts expect ABB to report another solid second quarter. J.P. Morgan analysts expect results to be broadly in line with market expectations and sufficient to support the company's full-year guidance. For 2026, they expect high single-to-low-double-digit organic sales growth and a further improvement in operating margins.

Write to Nina Kienle at nina.kienle@wsj.com

(END) Dow Jones Newswires

July 13, 2026 07:06 ET (11:06 GMT)

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