Sterling Infrastructure: Strong Q2 Makes The Pullback More Attractive

Sterling Infrastructure (STRL) delivered a ~90% YoY revenue surge to $1.17B in Q2 FY26, driven by E-Infrastructure strength. Robust demand in the E-infrastructure segment due to solid data center and semiconductor construction activity and a healthy pipeline supports topline growth through FY26. Despite margin dilution from CEC’s lower-margin mix, STRL’s profitability should remain strong with strong execution and better productivity. With fundamentals remaining intact and an increasingly attractive valuation following the recent correction, I am upgrading STRL to a strong buy.

As Sterling Infrastructure ( STRL ) exited the first half of FY26, it reported another exceptional quarter, nearly doubling its topline in Q2 , with strong bottom line expansion While robust AI data