SPX Technologies has projected a significant increase in data center demand for 2026, raising its growth rate from 50% to 70%, supported by capacity expansion and robust market conditions.
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What are SPX Technologies' updated growth projections for data centers in 2026?
Based on SPX Technologies’ Q1 2026 earnings call remarks, the company’s updated growth projection for its data-center business in 2026 is “21% adjusted EBITDA growth” at the midpoint for the company’s 2026 outlook, while management explicitly ties the stronger 2026 performance to additional data-center-related volume delivered in the second half of 2026. 12
What this means specifically for data centers: SPX did not provide a single standalone 2026 “data center revenue growth %” figure in the excerpts; instead, it embedded the data-center acceleration into the overall 2026 guidance, emphasizing data-center volume in 2H 2026 as a driver of the updated outlook. 12
In addition to the guidance framework, management provided an explicit data-center demand / growth-rate update:
Interpretation: In the excerpts, “this year” corresponds to the current 2026 year, and the explicit updated projection for data centers is the increase of growth rate from 50% to 70% in 2026 (i.e., management’s data-center growth outlook for 2026). 3
SPX described how capacity expansion supports its data-center growth trajectory:
These remarks matter because they indicate the 2026 demand plan is being supported by already-progressing capacity, with the largest incremental ramps continuing into 2027–2028. 4
SPX’s updated 2026 data-center growth outlook in the provided excerpts is:
No additional 2026-specific “percentage of revenue from data centers” or a standalone 2026 data-center revenue target is provided in the excerpts you supplied; the guidance update is expressed through overall adjusted EBITDA growth and via qualitative/operational capacity and demand commentary. 123
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SPX Technologies outlines a data center capacity ramp to $1.1 billion, fueled by OlympusMAX throughput and Everest demand, with 2026–2028 incremental contribution shaped by 2027 production ramps and back-half margin improvement driven by volume leverage and Thermolec.
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Research questionPlease provide color on data center capacity ramp, including why capacity increased to 1.1 billion from 750 million, the incremental contribution in 2026 versus 2027, and how this capacity expansion and tariffs influence expected top-line growth and HVAC margins in the back half?
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Cintas raised its FY2027 incremental-margin outlook to 32%–34% and expects results in the range’s upper half, while cautioning that quarterly progress will be uneven. Workday comparisons, a demanding Q4 comparison, energy assumptions, and cost controls are key factors shaping the outlook; guidance also excludes UniFirst-related transaction costs and assumes no further acquisitions.
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Research questionWhat is the expected cadence of margins for the rest of the year, and are there notable quarterly comparisons or other factors that could affect it?
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AutoZone outlines a store-maturation-driven ROIC story, highlighting zero ROIC in the first year and a path to above 20% by year six, with ~15% by year four. The majority of near-term ROIC gains come from UDS customers through faster delivery and expanded inventory, while national accounts offer longer-term upside but without separate ROIC targets disclosed.
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Research questionWhat did management say about ROIC by commercial segments?
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Management attributes the near-term gross-margin pressure to a rapid ramp in custom products, noting that mix is the primary driver of the Q3 margin decline and that the forecast assumes continued custom growth. They expect the broader Data Center mix—anchored by connectivity and other segments—to stabilize margins in Q4, with margins remaining in the existing range into fiscal 2028 despite ongoing custom expansion.
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Research questionWhat did management say about Data center margin drivers from custom mix?
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Walmart explains that price investments are likely to lift traffic in 2H with lagged effects, while ticket dynamics face deflation and regulatory headwinds; OpEx growth of about 7% is mainly driven by depreciation from CapEx and higher self-insurance costs, with timing shifts supporting the back half.
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Research questionFor price investments, how will they shape comp assumptions from traffic versus ticket in the second half, and what drove the U.S. OpEx growth of about 7%—timing shifts, liability claims, or other factors?
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Marmaxx faced execution-related underperformance due to merchandise-mix gaps in stores, particularly for impulse and basic categories, not due to competition. TJX reports cross-functional fixes and systematic planning to prevent recurrence, with early improvements in August and a targeted return to a 2%-3% comp cadence by Q4 as the holiday season nears.
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Research questionLorraine Hutchinson asks what went wrong at Marmaxx, what steps have been taken to fix it, and when Marmaxx is expected to return to a 2%-3% comp cadence?
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Carvana frames its rest-of-2026 EBITDA guidance as midyear guardrails, reinforcing a disciplined, historical approach rather than signaling a fundamental pivot. The Q2 results underpin a favorable trajectory with record unit growth and profitability, and management expects sequential improvements into Q3 and Q4 despite near-term inventory and macro headwinds.
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Research questionWhy issue EBITDA guidance for the rest of 2026 now, and does it signal a change in the business trajectory vs the first half, in terms of sales or profitability?
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Performance Food Group outlines a fiscal 2027 EBITDA path supported by growth across Foodservice, Convenience, and Specialty, with the 8%–13% band excluding the 53rd week. Management notes the 53rd week adds roughly 2% to full-year results, while corporate overhead moves in line with segment-driven safety trends, reinforcing a consolidated improvement rather than an outsized corporate swing.
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Research questionWhat is the segment-by-segment EBITDA outlook for fiscal 2027 and how does corporate overhead factor into the outlook within the 8%–13% EBITDA growth range (excluding the 53rd week)?
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Quanta Services outlines a pathway to higher long-term margins anchored in a greater self-perform mix and larger load-center/generation projects, underpinned by a training-driven expansion of the workforce and a reinforcing backlog buildup. The analysis also flags headwinds such as mix/risk, lumpy project timing, and interconnection bottlenecks that could temper near-term gains even as backlog strengthens.
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Research questionHow do you view long-term margin upside given higher self-perform mix and larger load-center/generation projects, and what could limit that upside?
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Investors are reassured by management's clear operational explanation for ramp-up challenges and contractor performance. The discussion ties production progress to free cash flow prospects, reinforcing cash-flow visibility even as ramp-up remains gradual and strategic bottlenecks are addressed.
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Research questionYeah. Yeah. that is good color?
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Howmet Aerospace reports a strong Q2 2026 with a 32.1% EBITDA margin, up 340 bps year over year as EBITDA outpaced revenue growth. Despite a CAM headwind from the April acquisition, the company delivered a 46% incremental flow-through and highlighted segment margin expansion, with additional CAM synergies anticipated in 2027.
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Research questionWhat specific factors drove the 340 bps year-over-year improvement to Q2 EBITDA margin (32.1%) despite a modest CAM headwind, and how did incremental flow-through of revenue to EBITDA reach 46%?
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Airbnb’s management frames AI-native transition costs as a path to higher margins in 2026 Q2, citing an expected AI spend with offsetting efficiency gains. Notable improvements include a 16% YoY reduction in customer service cost per booking driven by the AI assistant, greater productivity without headcount growth, and a view that inference costs are de minimis relative to ROI, supported by faster product iteration.
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Research questionWhat did management say about AI-native transition cost efficiency?
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