Tetra Tech's stock surged 6.02% in after-hours trading following the release of its second-quarter fiscal 2026 financial results, which significantly exceeded analyst expectations.

The consulting and engineering firm reported quarterly adjusted earnings per share of $0.34, beating the consensus estimate of $0.32. Revenue for the quarter was $1.22 billion, far surpassing the estimated $1.003 billion. The company also announced it is raising its full-year fiscal 2026 guidance, now expecting net revenue of $4.25 billion to $4.40 billion and adjusted EPS of $1.50 to $1.58.

Key drivers behind the strong performance include growth across water, environment, and sustainable infrastructure markets, increased orders from U.S. defense agencies for facilities and infrastructure modernization, and rising international demand for front-end water and infrastructure consulting services. The company's backlog climbed to $4.28 billion, up 8% sequentially, supported by recent contract wins including a $400 million U.S. Army Corps of Engineers contract.