TSS beats Q4 revenue estimates on AI demand

TSS

11/03/2026 11:08

Overview

US data center services firm's Q4 revenue rose 22% yr/yr; full-year revenue up 66%

Full-year diluted EPS more than doubled to $0.56

Company extended long-term AI rack integration deal with largest customer

Outlook

TSS expects 2026 Adjusted EBITDA in the range of $20 mln to $22 mln

Company anticipates record growth in Systems Integration, with rack integration volumes expected to double

Company takes conservative view on Procurement and Facilities Management outlook due to supply chain volatility

Result Drivers

SYSTEMS INTEGRATION RAMP - Co said ramp-up of systems integration rack volumes at new Georgetown facility drove Q4 and full-year growth

AI INFRASTRUCTURE DEMAND - Co cited accelerating demand for AI and cloud infrastructure as a key growth driver, with increased rack complexity and cooling requirements benefiting its business

CUSTOMER AGREEMENT EXTENSION - Amended and extended long-term AI rack integration agreement with largest customer provided business stability and growth visibility

Company press release: ID:nACShdKJBa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$60.91 mln
$41.40 mln (2 Analysts)
Q4 EPS
$0.41
Q4 Net Income
$12.16 mln
Q4 Basic EPS
$0.45
Q4 Gross Profit
$11.34 mln
Q4 Operating Income
$4.06 mln
Q4 Pretax Profit
$4.40 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

Wall Street's median 12-month price target for TSS Inc is $14.50, about 31.2% above its March 10 closing price of $11.05

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)