Forgent Power Solutions (NYSE:FPS) Releases Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Forgent Power Solutions (NYSE:FPS) announced its earnings results on Tuesday. The company reported $0.25 earnings per share for the quarter, beating analysts’ consensus estimates of $0.24 by $0.01, FiscalAI reports. Forgent Power Solutions had a net margin of 2.17% and a return on equity of 12.14%. The business had revenue of $461.67 million for the quarter. The firm’s quarterly revenue was up 94.3% compared to the same quarter last year. Forgent Power Solutions updated its FY 2027 guidance to 1.260-1.400 EPS.

Here are the key takeaways from Forgent Power Solutions’ conference call:

• Record results and margin expansion: Q4 revenue rose 94% year over year to $462 million, while adjusted EBITDA increased 163% to $113 million and margin expanded to 24.4%. Full-year revenue reached $1.42 billion and adjusted EBITDA $323 million, exceeding the high end of guidance.
• Demand visibility strengthened substantially: Bookings reached a record $1.5 billion, with a 3.3x book-to-bill ratio and year-end backlog of approximately $3 billion, up 256% year over year. Management said the backlog consists entirely of firm purchase orders and covers more than 90% of fiscal 2027 revenue guidance.
• Modular solutions and direct data-center relationships are gaining traction: Powertrain Solutions revenue grew 187% year over year and represented about 40% of backlog, while Forgent secured its first direct order from a frontier AI lab and signed a master services agreement with a hyperscaler.
• Capacity and growth investments support an ambitious outlook: Forgent plans a 385,000-square-foot Tijuana facility that should increase Powertrain Solutions capacity by more than 50% and is expected to open in Q4 fiscal 2027. The company guided to fiscal 2027 revenue of $2.4 billion-$2.6 billion, adjusted EBITDA of $575 million-$625 million, and operating cash flow above $300 million.
• Near-term profitability will absorb expansion costs: First-quarter guidance includes approximately $10 million of one-time costs tied to hiring and capacity expansion, resulting in expected adjusted EBITDA of $90 million-$100 million and roughly 21% margin. Management also plans to stop reporting quarterly orders and backlog, shifting to annual disclosure while providing quarterly revenue and EBITDA guidance.

Forgent Power Solutions Stock Up 9.8%

Shares of NYSE:FPS opened at $31.45 on Wednesday. The stock’s 50-day moving average is $35.63 and its 200 day moving average is $40.19. The company has a market cap of $9.58 billion and a PE ratio of 209.69. The company has a debt-to-equity ratio of 0.99, a current ratio of 1.64 and a quick ratio of 1.16. Forgent Power Solutions has a 1 year low of $25.95 and a 1 year high of $66.00.

Institutional Trading of Forgent Power Solutions

Several large investors have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. bought a new stake in shares of Forgent Power Solutions during the 2nd quarter valued at about $30,000. Triumph Capital Management bought a new position in Forgent Power Solutions in the second quarter worth about $39,000. IFP Advisors Inc bought a new position in Forgent Power Solutions in the second quarter worth about $48,000. Hollencrest Capital Management purchased a new stake in Forgent Power Solutions in the second quarter worth about $56,000. Finally, Allworth Financial LP bought a new stake in Forgent Power Solutions during the 2nd quarter valued at approximately $86,000.

Analyst Upgrades and Downgrades

FPS has been the topic of several research reports. Wolfe Research restated an “outperform” rating and set a $60.00 price objective on shares of Forgent Power Solutions in a research report on Thursday, July 9th. Robert W. Baird started coverage on Forgent Power Solutions in a report on Wednesday, July 15th. They set an “outperform” rating and a $55.00 target price for the company. Zacks Research lowered Forgent Power Solutions from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, September 8th. Jefferies Financial Group boosted their price objective on Forgent Power Solutions from $44.00 to $56.00 and gave the company a “buy” rating in a research report on Friday, May 29th. Finally, Weiss Ratings lowered Forgent Power Solutions from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Tuesday, July 28th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Forgent Power Solutions presently has an average rating of “Moderate Buy” and an average price target of $56.75.

Key Forgent Power Solutions News

Here are the key news stories impacting Forgent Power Solutions this week:

• Positive Sentiment: Forgent reported fiscal fourth-quarter revenue of approximately $462 million, up 94% year over year, while adjusted EPS of $0.25 exceeded the $0.24 consensus estimate. Full-year results also surpassed the high end of management’s prior guidance. Forgent Reports Record Fourth Quarter and Full Year 2026 Results
• Positive Sentiment: Management guided fiscal 2027 revenue to $2.4 billion-$2.6 billion and EPS to $1.26-$1.40, well above analyst expectations of roughly $2.1 billion in revenue and $1.14 in EPS. The guidance implies about 76% revenue growth at the midpoint. Forgent Power Solutions Stock Rises After Issuing 2027 Guidance
• Positive Sentiment: Forgent entered fiscal 2027 with an all-time-high backlog and record orders, supporting expectations for continued growth from data-center and broader power-infrastructure demand. Why Forgent Power Stock Popped Today
• Positive Sentiment: The company’s first-quarter fiscal 2027 revenue outlook of $445 million-$465 million is generally consistent with the $456.7 million analyst consensus, suggesting near-term execution remains on track.
• Neutral Sentiment: Investors purchased 21,324 call options, 286% above average volume, indicating increased bullish positioning but also potentially higher short-term volatility. Stock Traders Purchase Large Volume of Forgent Power Solutions Call Options

Forgent Power Solutions Company Profile

Forgent Power Solutions, Inc develops and manufactures products used in electric power transmission and distribution infrastructure. Its offerings support the generation, transmission, distribution and management of electrical power for utility and industrial applications.

The company’s product portfolio includes equipment and components used in overhead and underground power networks, including electrical connectors, fittings, line hardware and other engineered solutions designed to support the reliability and efficiency of power-delivery systems.

Forgent Power Solutions serves electric utilities, distributors and industrial customers, primarily through markets connected to North American power infrastructure.