Forgent Power Solutions Surges 10% After Record Q4 Beat and Blockbuster FY27 Guidance

Forgent Power Solutions (NYSE: FPS) reported fiscal fourth-quarter revenue of $462 million on September 15, a 94% increase year over year and well above both Wall Street's consensus estimate of roughly $425.6 million and the high end of the company's own May guidance. Adjusted EBITDA jumped 163% to $113 million against an estimate of $108 million, while adjusted net income came in at $77.3 million versus an expected $73.6 million. GAAP EPS of $0.21 beat the consensus by a penny, and adjusted EPS was $0.25.

The standout figure was bookings, which hit a record $1.5 billion in the quarter, up 375% year over year, pushing the company's total backlog to $3 billion, a 256% increase from a year earlier. The book-to-bill ratio reached 3.3 times, and the Powertrain Solutions segment posted 259% growth for the full fiscal year. Cash flow from operations for the quarter was $74 million. Full-year fiscal 2026 revenue came in at $1.42 billion, up 89%.

For fiscal 2027, Forgent issued guidance for revenue of $2.4 billion to $2.6 billion, roughly 76% growth and well above the analyst consensus of $2.08 billion. The company guided for adjusted EBITDA of $575 million to $625 million against an estimate of $511 million, and adjusted EPS of $1.26 to $1.40. Executives said the results reflect market share gains in power infrastructure serving data centers and the broader grid, and announced an incremental capacity expansion for dedicated e-House and Powerskid production in Tijuana.

Shares rose as much as 12% in premarket trading before settling to gains of roughly 9% to 10.9% during the session, as investors responded to the magnitude of both the earnings beat and the forward guidance upgrade.