Why is Legence stock surging today?

Legence stock rose 7.7% in pre-open trading after the company released a record-breaking third-quarter earnings report before the market opened, with earnings per diluted share of $1.15 coming in well ahead of the Wall Street consensus of roughly $0.50 per share, and quarterly revenue climbing 85% year-over-year to $1.31 billion on the back of surging demand for data center and mission-critical building infrastructure.

Beyond the headline beat, several additional disclosures reinforced the bullish reaction. Management raised its full-year 2026 revenue guidance to $4.87 billion–$4.91 billion and lifted its Adjusted EBITDA target to $610 million–$620 million, while also introducing initial 2027 guidance projecting revenue of up to $5.6 billion. The board’s authorization of a $150 million stock repurchase program, alongside a record total backlog and awarded contracts of $5.90 billion — up 93% year-over-year — added further fuel to the pre-market move.

The broader market offered little help to the rally: the NASDAQ composite is down 1.1% and the S&P 500 is off 0.5%, making Legence’s gain stand out sharply against a risk-off tape. The stock had entered today deeply discounted, trading near a 52-week low of $23.90 and more than 70% below its 52-week peak of $107.24, after a string of sell-offs tied to regulatory concerns over data center construction and prior analyst price target reductions.

Taken together, a dramatic earnings beat, upwardly revised full-year and 2027 guidance, a new buyback program, and a record backlog combined to spark a powerful relief rally in a stock that had been heavily punished heading into the print — even as the broader market traded lower on the day.