Comfort Systems USA: Data Center HVAC Demand Drives 57% Revenue Jump

Comfort Systems USA (NYSE:FIX) reported first-quarter revenue of $2.87 billion, up 56.8% from a year earlier, as AI data center construction drove demand for its mechanical and HVAC services. Same-store revenue rose 51% in the quarter.

The company's backlog hit $12.45 billion, nearly double the $6.89 billion figure from a year ago. That gives Comfort Systems strong visibility into future work as customers build large, complex facilities that require extensive cooling infrastructure.

On June 8, UBS raised its price target on the stock to $2,125 from $1,992 and kept a Buy rating after meeting with management. The firm said company comments pointed to a demand backdrop led by data centers, with additional strength from semiconductors, healthcare, and education. UBS saw evidence the current environment could persist through 2027.

Comfort Systems provides mechanical and electrical contracting services, including heating, ventilation, air conditioning, plumbing, piping, controls, and modular construction. The company's role in constructing the mechanical backbone of data centers – HVAC, piping, and cooling infrastructure – makes it a direct beneficiary of the AI buildout.

The stock has been one of the faster-growing names in the data center cooling space. The revenue growth and backlog expansion suggest the cycle has room to run, though the stock's valuation reflects much of that optimism already.