What Happened?
Shares of HVAC and electrical contractor Comfort Systems (NYSE: FIX) jumped 18.4% in the afternoon session after the company posted strong third-quarter 2025 results that surpassed analyst expectations on both revenue and profit, driven by a record backlog. The HVAC and electrical contractor reported revenue of $2.45 billion, a 35.2% increase year-on-year and well ahead of Wall Street's estimates. Earnings were also a highlight, with a GAAP profit of $8.25 per share, which was 32.4% above analysts’ consensus forecasts. Furthermore, the company's backlog, a key indicator of future revenue, grew by an impressive 65.1% year-on-year to $9.38 billion. The strong performance was also reflected in improved profitability, as its operating margin expanded to 15.5%, up from 11.2% in the same quarter last year.
The shares closed the day at $981.87, up 18.9% from previous close.
Is now the time to buy Comfort Systems? Access our full analysis report here.
What Is The Market Telling Us
Comfort Systems’s shares are very volatile and have had 27 moves greater than 5% over the last year. But moves this big are rare even for Comfort Systems and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 11 days ago when the stock gained 4.1% on the news that Stifel maintained its "Buy" rating on the stock and raised its price target. The analyst, Brian Brophy, increased the price target from $746 to $917. This revision represented a notable 22.92% increase, signaling strong confidence in the company's potential for future growth. Such a significant adjustment by a financial analyst often attracts positive attention from investors, as it suggests a more optimistic outlook on the stock's value based on the firm's research.
Comfort Systems is up 129% since the beginning of the year, and at $981.66 per share, has set a new 52-week high. Investors who bought $1,000 worth of Comfort Systems’s shares 5 years ago would now be looking at an investment worth $18,118.
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