Shares of a data center equipment supplier soared by nearly 20%. And that's not the end of it.

Shares of Ceco Environmental, a provider of water and air purification systems as well as temperature control solutions, soared 19% on November 9. The company’s financial results exceeded Wall Street’s forecasts. Analysts believe Ceco’s stock could rise another 100%.

Ceco shares rose 19% on November 9 on the Texas Stock Exchange, reaching $52.

This came after the company reported that: its third-quarter revenue rose 105% year-over-year to $404.4 million, and adjusted diluted earnings per share increased 2.3-fold to $0.6. Both figures slightly exceeded Wall Street’s forecasts, according to Barron’s.

In the third quarter, Ceco’s order volume rose by 234% to $777.6 million; the order backlog at the end of the reporting period stood at $2.2 billion, representing a 205% year-over-year increase. Approximately 20% of the order backlog at the end of the quarter consisted of data center projects, with the remainder primarily comprising industrial and energy projects, CEO Todd Clison said during a conference call with analysts.

Ceso raised its forecast for 2026 order volume by a quarter—to $2.5 billion—but left its revenue guidance unchanged at $1.3–1.37 billion. The Wall Street consensus currently stands at $1.34 billion, according to Barron’s.

The company also shared its forecast for 2027: its revenue is expected to be in the range of $2.1–2.3 billion, with adjusted EBITDA of $475–525 million.

Gleason attributed the expected trends in part to Thermon’s performance. Ceco completed the acquisition of this company in June 2026 to expand its portfolio in the field of industrial temperature and thermal load control. Already in the third quarter, Thermon contributed $148.5 million to Ceco’s total revenue.

He stated that in preparing its forecast, the company took into account inflation, policy changes, geopolitical events, and sentiment regarding investments in artificial intelligence and data centers. He also said that the implementation of some major industrial water supply projects in the Middle East had been postponed due to regional conflicts, so these projects were not included in the forecast.

Since the beginning of the year, Ceco’s stock price has fallen by 13%. The main drop occurred in late June, following a decline in semiconductor stocks, according to a Barron’s article. Like chipmakers, the company is dependent on trends in artificial intelligence, the publication notes.

Wall Street views the company’s outlook positively: its stock has eight analyst ratings, all of which are “buy.” The average price target of $110.30 implies 112% upside potential relative to the closing price on November 9.