Shares of SPX Technologies surged 11.9% to $223.00 after the infrastructure equipment maker posted a quarter that blew past Wall Street expectations on nearly every metric — and then lifted its full-year outlook by a wide margin. The question now: whether the stock's run-up has already priced in the good news, or whether data center demand still has room to pull this company higher.

• Revenue Topped Forecasts by Nearly 6%, and It Wasn't Close

Q2 revenue hit $679 million versus analyst estimates of $641.6 million, a 5.8% beat representing 22.9% year-on-year growth.

Management then lifted full-year revenue guidance to $2.74 billion at the midpoint from $2.61 billion — a 4.8% increase — landing 4.6% above the Street's prior consensus. That kind of double surprise — beat and raise — forces analysts to rework their models, which is exactly why the stock gapped up.

• Data Center Cooling Is Now a Billion-Dollar Business Line

SPX's HVAC segment delivered $480.6 million in Q2 revenue, up 27.6% year-on-year, with 18.9% coming from organic growth — meaning existing operations, not acquisitions.

The company has increased its estimated annual data center revenue capacity to roughly $1.1 billion at full production , signaling that AI-driven cooling demand is not a one-quarter spike but a structural business driver. However, HVAC margins fell 260 basis points (2.6 percentage points) to 22.8%, pressured by factory expansion start-up costs, tariffs, and inflation. Investors should watch whether margins recover as new capacity ramps.

• Profits Grew Faster Than Revenue — a Good Sign

Adjusted earnings per share came in at $2.02, beating last year's $1.65 and topping the $1.85 consensus by 9.3%.

Full-year adjusted EPS guidance was raised to $8.20–$8.60, up from $7.75–$8.15 previously , against a prior consensus of $8.04.

Operating margins expanded 1.3 percentage points to 16.9% , showing the company is growing more efficiently even while spending heavily on expansion.

• The Balance Sheet Carries New Weight

SPX ended Q2 with $614.7 million in total debt and $168.2 million in cash.

That excludes $340 million in July borrowings to fund its Neptronic acquisition , a deal that deepens SPX's HVAC portfolio. At roughly $223 per share, the stock trades at about 26.5× the midpoint of raised EPS guidance — a premium that now demands continued execution on data center orders and margin recovery in the quarters ahead.