Legence shares surge as Alger Weatherbie fund highlights record growth

Fred Alger Management’s Alger Weatherbie Specialized Growth Fund identified Legence Corp. as a significant positive contributor to its portfolio during the first quarter of 2026. In its investor letter, the fund highlighted the engineering and construction services provider’s accelerating revenue growth, robust earnings expansion, and solid free cash flow generation as primary drivers of the stock’s strong performance.

Legence reported record first-quarter revenues of $1.038 billion, representing a 105 per cent increase from the previous year. The company also raised its full-year guidance, with management pointing to data centre projects as the main source of upside. The firm noted encouraging strength in its government and life sciences end markets, which serve complex commercial environments alongside its core data centre operations.

The Alger Weatherbie Specialized Growth Fund focuses on companies leveraging artificial intelligence for task automation and workflow management. While the fund’s Class A shares underperformed the Russell 2500 Growth Index in the first quarter, the letter noted that Information Technology and Consumer Staples sectors contributed to relative performance. This occurred against a backdrop of US equity volatility, with the S&P 500 Index falling 4.33 per cent amid AI disruption and geopolitical tensions.

As of May 22, 2026, Legence shares closed at $81.58, reflecting a year-to-date gain of 89.54 per cent. The company’s market capitalisation stands at $13.4 billion. Despite the positive contribution from Legence, the Alger Weatherbie Fund’s letter acknowledged that other AI stocks may offer greater upside potential with less downside risk, though it maintained confidence in Legence’s trajectory.

Institutional interest in the firm has also increased. At the end of the fourth quarter of 2025, 40 hedge fund portfolios held Legence Corp., an increase from 37 in the previous quarter. The Alger Weatherbie Fund described Legence as well-positioned at the intersection of durable demand drivers, citing the growing complexity of modern building infrastructure as a key factor supporting its specialised expertise.