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Oppenheimer Highlights Strong Bookings After Trane Technologies’ (TT) Q4 Beat

Trane Technologies plc (NYSE:TT) is included among the 12 Best HVAC Stocks to Buy Now.

On January 30, Oppenheimer analyst Noah Kaye raised the firm’s price objective on Trane Technologies plc (NYSE:TT) to $468 from $460 and maintained an Outperform rating. Shares moved higher the same day after the company delivered a fourth-quarter beat on both revenue and earnings. The firm also highlighted strong enterprise bookings and FY26 EPS guidance that came in line, supported by higher expected sales.

A day earlier, on January 29, Trane reported fourth-quarter results that exceeded Wall Street expectations. Results were driven by solid commercial HVAC demand, with AI data centers playing a growing role. Revenue increased 6% year over year to $5.15 billion, topping the $5.09 billion consensus estimate. Adjusted earnings from continuing operations came in at $2.86 per share, above expectations of $2.81. Net income rose to $624 million, or $2.74 per share, compared with $607 million, or $2.67 per share, a year earlier.

Bookings were a standout. Trane said total bookings climbed 24% to $5.76 billion, with organic bookings up 22%. Backlog reached a record $7.8 billion, up 15% from the end of 2024. Growth was led by Americas Commercial HVAC, which the company said rose more than 35%.

In the Americas segment, bookings totaled $4.65 billion, up 27%, with organic bookings increasing 26%. Management said momentum was strongest in commercial HVAC, where applied equipment bookings jumped more than 120%. The applied book-to-bill ratio reached 200%, a level that points to continued strength in demand.

Trane Technologies plc (NYSE:TT) operates as a global climate innovator. Through brands such as Trane and Thermo King, the company provides climate solutions for buildings, homes, and transportation across a wide range of markets.

While we acknowledge the potential of TT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TT and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: Dividend Growth Stocks: 25 Aristocrats and 10 Best Monthly Dividend Stocks to Buy Now

Disclosure: None.

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