Trane Technologies PLC's stock surged 6.80% during pre-market trading on Thursday, following the release of its fourth-quarter 2025 financial results that exceeded analyst expectations.

The company reported adjusted earnings per share of $2.86 for Q4 2025, beating the FactSet consensus estimate of $2.81. Revenue reached $5.15 billion, also surpassing estimates of $5.09 billion. This performance was driven by a 24% increase in quarterly bookings, with organic bookings up 22%, largely fueled by strong demand in the Americas Commercial HVAC segment which saw bookings rise over 35%.

Trane Technologies cited strong demand for commercial air-conditioning systems tied to AI data center buildouts as a key growth driver. The company also reported a record backlog of $7.8 billion and issued positive guidance for 2026, expecting revenue growth of 8.5% to 9.5% and adjusted EPS between $14.65 and $14.85, which aligns with analyst expectations.