$FIX · COMFORT SYSTEMS USA INC

Comfort Systems USA filed its 10-Q for Q3 FY2026, reporting revenue of $3.77B (+53.7% YoY), net income of $489M, and diluted EPS of $13.91. Gross margin was flat at 24.8% despite the revenue surge. Operating cash flow for the nine months reached $2.54B, driven by a $1.69B increase in billings in excess of costs. The company repurchased $340.9M in stock during Q3 at an average price of $1,643.85 per share.

Extended-hours trading shows FIX at $1,215.00, down 5.03% from the $1,279.37 regular close. Despite massive top-line growth and EPS nearly doubling, the flat gross margin (24.8%) and the stock's premium valuation ($45B market cap) appear to be weighing on sentiment.

A 53.7% revenue jump with EPS nearly doubling yet a 5% after-hours selloff signals the market expected margin expansion that didn't materialize — a critical test for a $45B industrial.

Comfort Systems' 53.7% revenue growth far outpaces typical HVAC/mechanical peers, but the flat gross margin contrasts with expectations that scale would drive operating leverage. The electrical segment (31% of Q3 revenue) grew 85% YoY, reflecting the Hunt acquisition and data-center demand tailwinds

Gross margin failed to expand despite 53.7% revenue growth, staying at 24.8% — suggesting cost pressures or acquisition dilution. Nine-month capex surged to $499M from $89M, a 5.6x increase that could pressure free cash flow if growth moderates. Seasonal Q1 weakness is explicitly flagged.