Johnson Controls (NYSE:JCI) just smashed expectations, and Wall Street is taking notice. The HVAC and building solutions giant posted adjusted earnings per share of $0.64, beating estimates of $0.59, while sales came in at $5.4 billion. Orders surged 16% year over year, driven by booming demand for data center cooling solutionsan increasingly critical piece of the AI infrastructure puzzle. CEO George Oliver emphasized that the company's transformation strategy is paying off, with strong momentum in its backlog, which now stands at a record $13.2 billion. A big catalyst? Alphabet's (NASDAQ:GOOG) decision to ramp up capital spending to $75 billion in 2025, a chunk of which will go toward AI data centers that need cooling systemsright in Johnson Controls' wheelhouse.

Management raised full-year guidance, now expecting earnings per share of $3.50 to $3.60, up from the previous forecast of $3.40 to $3.50. The data center segment is the real standout here, with revenue doubling year over yearproof that AI-driven infrastructure investments are still accelerating. Jefferies analysts, who rate Johnson Controls a Buy with a $95 target, highlighted the company's expanding profit margins and the strong order pipeline as key tailwinds. While some had worried that cost-efficient AI models like DeepSeek could slow capital investment, Johnson Controls' numbers suggest the oppositecompanies are doubling down on AI infrastructure, not pulling back.

Investors have taken notice, sending its stock soaring 12.2% at around 1pm today, hoovering in the all-time high range. The broader market may be cooling off, but Johnson Controls is heating up at the perfect time. As AI data centers scale, so does the demand for high-tech coolingand Johnson Controls is positioned as one of the biggest beneficiaries. With the AI arms race in full swing, this stock isn't slowing down anytime soon.