Ferguson Enterprises Inc. (NYSE:FERG) is likely one of the finest water infrastructure shares to purchase as AI information facilities pressure sources. On Might 5, 2026, Ferguson reported first-quarter gross sales of $7.5 billion, up 3.6% yr over yr, whereas U.S. non-residential income rose 8%. Administration stated giant capital mission exercise remained robust, with progress in shipments, open orders, and bidding exercise.
The information heart angle is unusually direct for a distributor. Throughout the identical earnings name, CFO Invoice Brundage stated information facilities accounted for somewhat over half of Ferguson’s giant capital mission income. He additionally stated giant capital initiatives confirmed up principally in industrial mechanical, which grew 21%, and in a part of Waterworks, which grew 14%.
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That is vital as a result of giant AI information heart campuses require coordinated waterworks, mechanical, HVAC, plumbing, PVF, valve, flow-control, wastewater, and fire-protection provide earlier than they will function at scale. Ferguson additionally accomplished two Waterworks acquisitions in the course of the quarter: Expertise Gross sales Associates and Chesapeake Environmental Gear.
Ferguson Enterprises Inc. (NYSE:FERG) is a North American distributor of water, air, plumbing, HVAC, PVF, waterworks, wastewater, and associated infrastructure merchandise.
Whereas we acknowledge the potential of FERG as an funding, we consider sure AI shares supply higher upside potential and carry much less draw back threat. When you’re searching for an especially undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring pattern, see our free report on the finest short-term AI inventory.
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