This Under-the-Radar AI Infrastructure Stock Just Crushed Estimates and Raised Guidance

STRL reported third-quarter revenue of $1.56 billion, up 127% year-over-year, topping analyst expectations and prompting management to raise its full-year outlook.

The guidance lift is the headline for positioning. Sterling Infrastructure increased its full-year 2026 revenue guidance by $600 million, setting the midpoint at $4.68 billion. A raise of that size on top of a quarter growing 127% year-over-year signals management sees demand holding well beyond the reported period.

Backlog adds forward visibility. It grew 78% to $6.14 billion, driven primarily by AI data center construction and electrical work. Interpretation: with backlog now equal to roughly 1.3x the guided full-year revenue midpoint, the order book covers a substantial share of near-term sales, which reduces reliance on new bookings to hit targets.

Valuation is the counterweight to the growth story. STRL trades at a 16.7x forward P/E. Interpretation: for a company posting triple-digit revenue growth, that multiple is modest, suggesting the market may still be pricing in some execution or cyclicality risk tied to the AI data center concentration in the backlog.