Generac Holdings (GNRC) stock surged 6.80% in pre-market trading Wednesday after the power equipment maker reported second-quarter earnings that significantly exceeded Wall Street expectations, fueled by surging orders from data center operators.

The company posted adjusted earnings per share of $2.91, blasting past the analyst consensus estimate of $2.01. While revenue of $1.17 billion slightly missed expectations, the real story was the 29% jump in its Commercial & Industrial segment sales, driven by robust demand for backup generators and power infrastructure from data centers expanding to support AI workloads. Adjusted EBITDA of $291 million also came in well above the $216.1 million estimate.

Adding to the bullish sentiment, Generac raised its full-year adjusted EBITDA margin outlook to 20-21% from the prior 18.5-19.5% range and reaffirmed its net sales growth guidance of mid-to-high teens percent. The company highlighted a rapidly growing data center backlog, now totaling approximately $1.6 billion, which includes a recently signed global supply agreement with a leading hyperscale customer and a second hyperscale deal in the works, providing strong visibility for growth into 2027.