Data Center Cooling Provider Sees Ongoing Demand. Shares Are Near A High.

Data center cooling provider Comfort Systems USA (FIX) has been firing on all cylinders. It has experienced persistent demand and the company is optimistic about 2026.

Its top-notch fundamentals and stellar stock performance earned Comfort Systems a trifecta, as it’s on the IBD Sector Leaders list, the IBD 50 tally of top growth stocks, and the IBD Big Cap 20 list.

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Comfort Systems operates more than 50 companies that provide heating and cooling, mechanical, electrical and plumbing services. It installs and maintains chillers and cooling towers, as well as power management and other specialized energy-efficient systems in data centers.

Of its 2025 revenue, 45% came from its Technology Sector, which includes data centers and chip manufacturing facilities, according to its Feb. 20 Investor Presentation. Comfort Systems expects strong markets to continue in its target areas, including tech, energy storage, health care and food processing.

“Unprecedented demand” helped fuel its backlog as of Dec. 31, the company said. Its backlog grew to $11.94 billion from $9.38 billion as of Sept. 30.

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Data Center Cooling Stock Outperforms

The company crushed fourth-quarter earnings and revenue forecasts on Feb. 19. Comfort Systems stock hit an all-time high of 1,500 several days later.

Shares are above the profit zone of a prior cup base with a 1,020.26 buy point, according to MarketSurge chart analysis. They are also extended after testing and bouncing off their 10-week moving average last week. The stock needs some time to form a new base, but its prior high of 1,500 could serve as an early entry.

Comfort Systems stock has gained around 55% this year through Thursday, on top of a 120% rise in 2025. Its relative strength line has climbed tremendously since April 2025. As of the December quarter, 1,815 mutual funds owned shares, up from 1,205 in September.

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Comfort Systems Delivers Profits

The company’s fourth-quarter profit grew 129% to $9.37 per share, with its increase accelerating from 49% five quarters prior. It reported $2.65 billion in quarterly sales, or a 42% increase, the highest rate in four quarters.

Analysts’ full-year 2026 profit forecasts have been recently revised upward to $36.76 per share, or a 28% jump, followed by a 20% increase to $44.29 in 2027.

The heating and cooling company has a three-year sales growth rate of 29%, according to IBD Stock Checkup. But Wall Street sees its 2026 revenue growth slowing to 20% followed by a 13% increase in 2027.

Lastly, the data center stock holds the highest possible Composite Rating and Earnings Per Share Rating of 99 each.

Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.

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