AI Takeaway
Comfort Systems USA (FIX) delivered exceptional Q2 FY2026 results with revenue up 50.3% YoY to $3.27B and net income nearly doubling (+91.3%) to $441.6M, driven heavily by surging technology-sector demand (58.7% of revenue) and new construction activity (75.1% of revenue), while operating cash flow for the six-month period exploded to $1.53B on favorable working capital dynamics.
Revenue
$3.27B
++50.26% YoY
EPS (Basic)
$12.54
++91.74% YoY
Gross Margin
25.9%
++2.39% YoY
Operating Income
$557.97M
++86.07% YoY
Filed · Source: SEC EDGAR 10-Q filing
Comfort Systems Usa (FIX) reported Q2 FY2026 revenue of $3.27B, up 50.3% year over year. The company posted net income of $441.6M, up 91.3% from a year earlier, with diluted EPS of $12.53. Gross margin was 25.9%.
Technology customers accounted for 58.7% of Q2 FY2026 revenue ($1.92B), up from 43.0% ($934.2M) in the prior-year quarter, reflecting a dramatic mix shift toward data-center and tech-related construction. New Construction activity type grew to 75.1% of revenue ($2.45B) versus 57.9% ($1.26B) a year ago.
Source: 10-Q Item 1 Notes, Note 3 Revenue from Contracts with Customers, p.10
Net revenue recognized from performance obligations partially satisfied in prior periods positively impacted Q2 FY2026 revenue by 7.7%, up from 4.4% in Q2 FY2025, indicating stronger-than-expected project execution and estimate revisions.
Source: 10-Q Item 1 Notes, Note 3 Revenue from Contracts with Customers, p.9-10
Electrical segment revenue nearly doubled to $969.0M (29.7% of total) from $534.6M (24.6%) a year ago, growing faster than the Mechanical segment which rose to $2.30B (70.3%) from $1.64B (75.4%), showing a shift in business mix.
Source: 10-Q Item 1 Notes, Note 3 Revenue from Contracts with Customers, p.9
Following IRS approval in May 2026 of amended 2019-2020 federal returns claiming R&D tax credits, the Q2 2026 tax provision included a $5.3 million benefit from reduced unrecognized tax benefits plus $1.4 million of related interest income; cash refunds of $29.8 million were received in July 2026.
Source: 10-Q Item 1 Notes, Note 2 Summary of Significant Accounting Policies, Income Taxes, p.7
Six-month operating cash flow of $1.53B was driven substantially by a $1.06B increase in billings in excess of costs and deferred revenue, alongside a $215.5M increase in accounts payable and other current liabilities, partially offset by a $633.1M increase in receivables as the business scaled rapidly.
Source: 10-Q Item 1 Consolidated Statements of Cash Flows, p.5
Technology-sector customers now represent 58.7% of Q2 FY2026 revenue, up sharply from 43.0% a year earlier, creating elevated dependence on continued data-center and tech-related capital spending; any slowdown in this end market could disproportionately impact revenue given the rapid mix shift.
Source: 10-Q Item 1 Notes, Note 3 Revenue from Contracts with Customers, p.9
Billed accounts receivable grew to $3.28B from $2.58B at year-end 2025, and billings in excess of costs and deferred revenue rose to $3.23B, reflecting rapid scaling that increases reliance on customer payment timing and estimate accuracy for long-term contracts.
Source: 10-Q Item 1 Consolidated Balance Sheets, p.2
The company uses the cost-to-cost input method requiring significant management judgment on total estimated costs at completion; cumulative catch-up adjustments contributed 7.7% to Q2 2026 revenue, meaning future estimate revisions (positive or negative) could materially swing reported operating income.
Source: 10-Q Item 1 Notes, Note 3 Revenue from Contracts with Customers, p.9-10
The Q2 FY2026 10-Q does not detail new risk factors but incorporates by reference the risks disclosed in the FY2025 Form 10-K Item 1A, indicating investors must review the annual report for a full risk picture not repeated in this filing.
Source: 10-Q Part II Item 1A Risk Factors, p.34
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $3.27B | $2.17B | +50.26% |
Cost of Revenue | $2.42B | $1.66B | +45.57% |
Gross Profit | $844.23M | $509.9M | +65.57% |
Operating Income | $557.97M | $299.87M | +86.07% |
Net Income | $441.6M | $230.85M | +91.30% |
EPS (Basic) | $12.54 | $6.54 | +91.74% |
EPS (Diluted) | $12.53 | $6.53 | +91.88% |
SG&A Expense | $287.05M | $210.47M | +36.39% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $8.49B | $5.06B | +67.62% |
Current Assets | $5.79B | $3.04B | +90.20% |
Total Liabilities | $5.27B | $3.09B | +70.43% |
Current Liabilities | $4.77B | $2.7B | +76.65% |
Stockholders' Equity | $3.22B | $1.97B | +63.21% |
Cash & Equivalents | $1.85B | $331.71M | +459.16% |
Long-Term Debt | $54.06M | $73.02M | -25.96% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $1.53B | $164.54M | +828.78% |
Investing Cash FlowYTD | $-467.46M | $-182.99M | -155.46% |
Financing Cash FlowYTD | $-187.89M | $-199.79M | +5.95% |
Share BuybacksYTD | $8.23M | $111.29M | -92.60% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 25.9% | 23.5% | +2.39% |
Operating Margin | 17.1% | 13.8% | +3.29% |
Net Margin | 13.5% | — | — |
ROE | 13.7% | — | — |
ROA | 5.2% | — | — |
Current Ratio | $1.214 | — | — |
Debt to Equity | $1.638 | — | — |
Expected release date, analyst estimates & what to watch
FIX (Comfort Systems USA) delivered exceptional Q1 FY2026 results with revenue surging 56.5% YoY to $2.87B and net income more than doubling to $370.4M, driven by strong demand across its mechanical and electrical contracting segments.
FIX (Comfort Systems USA) delivered exceptional FY2025 results with revenue surging 29.5% to $9.10B and net income nearly doubling (+95.7%) to $1.02B, driven by strong demand for mechanical and electrical contracting services.
Other companies in Construction & Engineering
While the filing does not disclose analyst consensus estimates, FIX reported revenue of $3.27B (+50.3% YoY) and diluted EPS of $12.53 (+91.9% YoY), both representing substantial growth acceleration compared to the prior-year quarter. Net income nearly doubled to $441.6M, driven by strong technology-sector demand and operating leverage.
Revenue growth of 50.3% YoY to $3.27B was primarily driven by the technology sector, which grew to 58.7% of total revenue ($1.92B) from 43.0% ($934.2M) a year earlier, alongside New Construction activity rising to 75.1% of revenue ($2.45B) from 57.9% ($1.26B). Both Mechanical and Electrical segments grew, with Electrical nearly doubling to $969.0M.
Six-month operating cash flow reached $1.53B, up dramatically from $164.5M in the prior-year period, largely due to a $1.06B increase in billings in excess of costs and deferred revenue. Cash and equivalents grew to $1.85B from $331.7M a year ago, while long-term debt declined to $54.1M.
The filing incorporates risk factors by reference to the FY2025 Form 10-K rather than detailing new risks, but data shows increasing concentration in the technology sector (58.7% of revenue) and rapid working capital growth, including accounts receivable rising to $3.28B. These trends suggest heightened sensitivity to a slowdown in tech-sector capital spending.
Gross margin expanded to 25.9% (from 23.5% a year ago) and operating margin rose to 17.1% (from 13.8%), reflecting improved cost efficiency and favorable cumulative catch-up revenue adjustments of 7.7% in the quarter. Net margin for the quarter stood at 13.5%.