10-Q · April 23, 2026
Comfort Systems reported Q1 2026 revenue of $2,865,332,000, up 56.5% year-over-year, with gross margin expanding to 26.3% and operating margin to 17.0%. Net income rose to $370,378,000 and operating cash flow was strong…
Earnings analysis · 10-Q
FIX earnings analysis
Filed October 22, 2026 · Our reading of the company's report
The latest report
Comfort Systems USA delivered a strong Q3, with revenue of $3.766 billion and diluted EPS of $13.91, both well above consensus, while operating margin remained high at 16.6%. Revenue and EPS increased substantially year…
Read full summary
Comfort Systems USA delivered a strong Q3, with revenue of $3.766 billion and diluted EPS of $13.91, both well above consensus, while operating margin remained high at 16.6%. Revenue and EPS increased substantially year over year, and free cash flow reached $805.6 million despite declining sequentially from $998 million. The principal disclosed risks are tariff-driven material-cost volatility, potential deviations in litigation outcomes, and ongoing capital deployment; no new formal numeric guidance was provided.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $13.91
- Operating margin
- 16.6%
What stood out
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Revenue materially exceeded consensus
Revenue was $3.766 billion, up approximately 15.2% from $3.27 billion in Q2 2026 and 53.7% from $2.45 billion in Q3 2025. Revenue exceeded the $3.391 billion consensus estimate by approximately $375 million.
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EPS beat with strong growth
Diluted EPS was $13.91, up 11.0% sequentially from $12.53 and 68.6% year over year from $8.25, exceeding the $12.82 consensus estimate by $1.09.
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Operating margin remains elevated
Operating margin was 16.6%, up 1.1 percentage points from 15.5% in Q3 2025 but down 0.4 percentage points from 17.0% in Q2 2026, indicating year-over-year expansion despite modest sequential contraction.
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Cash generation remained strong
Free cash flow was $805.6 million, down from $998 million in Q2 2026 but up from $518 million in Q3 2025. The filing's reported quarterly FCF equates to approximately 21.4% of revenue.
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Backlog supports future activity
Backlog increased to $17.81 billion, supporting management's stated confidence in continued growth, profitability, and cash flow through year-end and 2027.
What to watch
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Tariff and material-cost exposure
The company stated that commodity and material prices may fluctuate because of tariffs and other macroeconomic factors. Although many cost increases are recoverable and management does not expect a material impact, unrecovered inflation could pressure margins; the company reported no outstanding revolver borrowings as of September 30, 2026.
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Litigation estimates may prove insufficient
The company disclosed unresolved legal matters with an accrual described as not material, while noting that ultimate costs could deviate from estimates and an unexpectedly adverse outcome could create additional future expenses.
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Capital allocation and liquidity risk
The company repurchased 0.2 million shares for $349.1 million during the nine months ended September 30, 2026, including excise tax, reducing cash available for other uses; only 666,914 shares remained authorized under the repurchase program at quarter-end.
Management's outlook
No numeric revenue or EPS guidance was provided in the 10-Q. Management expressed confidence in growth, profitability, and cash flow through year-end and 2027.
Earlier filings 4
10-K · February 19, 2026
Comfort Systems USA reports accelerating top-line and margin expansion through 2025 with Q4 revenue of $2.646B and diluted EPS of $9.37 (Q4 actuals). The company cites a large backlog of approximately $24.17B (8,427…
10-Q · October 23, 2025
Comfort Systems reported a strong Q3: revenue rose 35.2% YoY to $2.451 billion and gross margin expanded to 24.8% (from 21.1%), driving operating income of $378.9 million (15.5% margin) and net income of $291.6 million.…
10-Q · July 24, 2025
Comfort Systems reported a strong Q2 with revenue of $2.173 billion (up 20.1% y/y) and net income of $230.8 million, driving EPS of $6.53 and a material beat to consensus. Margins expanded materially (gross margin 23.5%…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.