Federal Signal's stock surged 9.67% in pre-market trading following the release of its first-quarter 2026 financial results, which significantly exceeded analyst expectations.

The company reported robust growth across key metrics, with net sales climbing 35% to $626 million and net income increasing 52% to $70.4 million. Federal Signal's adjusted earnings per share of $1.18 for the quarter substantially beat the consensus estimate of $0.89, while sales of $625.6 million surpassed the expected $579.3 million.

In addition to the strong quarterly performance, Federal Signal raised its full-year 2026 outlook, now projecting adjusted EPS in the range of $4.80 to $5.05 compared to the previous estimate of $4.70, and net sales between $2.57 billion and $2.66 billion versus the $2.61 billion estimate. The company also reported a 52% improvement in operating income and a 176% surge in operating cash flow to $101 million.