SPX Technologies Beats Q1 Earnings as Data Center Cooling Demand Surges

By Huzaifa Zahoor

June 13, 2026

08:51 PM

3 min read

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Key Points

SPX beat Q1 revenue estimates with $566.8M, up 17% year-over-year.

Operating margins expanded 200 basis points to 17% on scale and operational leverage.

Data center cooling guidance raised to 70% growth, implying $350M revenue in 2026.

HVAC backlog grew 38% organically to $755M driven by data center demand.

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SPX Technologies reported Q1 2026 earnings that beat all major estimates and prompted a full-year guidance raise. Revenue grew 17% to $566.8 million, adjusted EPS reached $1.69, and the company accelerated data center cooling revenue guidance to 70% growth. For investors, this signals strong operational leverage in a high-demand market segment.

Earnings Beat Across the Board

SPX Technologies reported Q1 2026 revenue of $566.8 million, beating the street estimate of $557.6 million by 1.8%. Adjusted EPS of $1.69 exceeded the $1.56 consensus by $0.13, a beat of 8.3%. The HVAC segment drove growth with 22% revenue increase, while Detection and Measurement grew 8%. Adjusted EBITDA expanded 23% with 90 basis points of margin expansion, demonstrating operating leverage.

Data Center Cooling Accelerates Guidance

The company raised its 2026 data center cooling revenue guidance from 50% growth to 70% growth. This implies approximately $350 million in data center revenue for 2026, up from a $200 million base in 2025. CEO Gene Lowe cited extremely strong demand on the earnings call. The HVAC segment backlog grew 38% organically to $755 million, driven entirely by data center cooling orders.

Operating Margins Expand on Scale

Operating income reached $94.3 million in Q1, with operating margins expanding to 17% from 15% a year earlier. This 200 basis point expansion reflects the company’s ability to scale production and absorb fixed costs as data center demand accelerates. Analysts rate the stock 6 Buy and 1 Hold, with consensus ratings at 3.0, indicating broad confidence.

Valuation and Stock Outlook

SPXC trades at $230.05, down 1.47% today but up 44.98% over the past year. Meyka rates the stock B+ with a 12-month price target of $224.18. The company’s mid-case valuation reaches $344 by December 2034, implying 47% total return from the current price. With a forward P/E of 44.01 and strong cash generation, the stock offers exposure to the data center thermal management boom.

Final Thoughts

SPX Technologies delivered strong Q1 results with margin expansion and accelerated data center guidance. Meyka’s B+ rating and 12-month target of $224.18 suggest limited downside from current levels, with upside tied to data center execution.

FAQs

Why did SPX raise data center guidance to 70% growth?

Strong demand for data center cooling from hyperscale AI infrastructure expansion drove accelerating orders and backlog growth, prompting the guidance raise from 50% to 70%.

What was SPX’s operating margin in Q1 2026?

Operating margin expanded 200 basis points to 17% in Q1 2026 from 15% year-over-year, driven by scale and operational leverage.

How much did SPX beat earnings estimates?

Revenue beat estimates by $9.2 million (1.8%). Adjusted EPS of $1.69 beat the $1.56 estimate by $0.13 (8.3%).

Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.

About Author

Huzaifa Zahoor

Co Founder

Huzaifa Zahoor is the engineer who built Meyka. He has spent years writing Python, training AI models, and building data pipelines specifically for financial markets. His technical articles have reached over 30,000 readers on Medium, so he knows how to make complex things easy to follow. If this article touches on how the tools work, he is the person who actually built them.