Brady Corporation (NYSE: BRC) saw its shares surge nearly 17% by 2 p. m.
on May 20, 2026, following the release of its third-quarter 2026 earnings report.
The company raised its full-year 2026 adjusted diluted earnings per share (EPS) guidance from the previous range of $4.95 to $5.15 to a new range of $5.20 to $5.30.
Management maintained its underlying assumptions for tax rates, depreciation, and amortization expenses during the revision.
Data Center Demand Drives Growth
The upward revision is primarily attributed to expanding data center operations, which require precise labeling, printing, and identification products such as barcodes and RFID technology.
This positions Brady as a key supplier to critical infrastructure, linking it to the artificial intelligence hardware ecosystem.
CEO Russell Shaller stated on the earnings call that wire and identification products account for 20% of Brady's total revenue in the Americas and Asia.
Sales in this specific business line grew by 19% during the quarter, contributing to a 10.4% organic sales increase in the Americas and Asia.
Overall company sales rose 8.2% for the quarter.
Honeywell PSS Acquisition on Track
The strong performance comes ahead of the finalized acquisition of Honeywell's Productivity Solutions and Services (PSS) business for $1.4 billion.
The deal combines Brady's labeling and printing technologies with PSS's expertise in mobile computing and barcode scanners.
Management expects the integration to broaden the customer base and generate approximately $25 million in annual cost synergies.
