Forgent Power Solutions (NYSE:FPS) Announces Earnings Results, Beats Expectations By $0.01 EPS

Forgent Power Solutions (NYSE:FPS) posted its quarterly earnings data on Tuesday. The company reported $0.25 earnings per share for the quarter, topping the consensus estimate of $0.24 by $0.01, FiscalAI reports. Forgent Power Solutions had a return on equity of 25.47% and a net margin of 5.76%.The business had revenue of $461.67 million for the quarter. Forgent Power Solutions’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 Price Performance

FPS stock opened at $34.98 on Thursday. The firm has a 50 day moving average of $35.42 and a 200-day moving average of $40.19. The firm has a market capitalization of $10.65 billion and a P/E ratio of 233.22. Forgent Power Solutions has a 12 month low of $25.95 and a 12 month high of $66.00. The company has a current ratio of 1.64, a quick ratio of 1.16 and a debt-to-equity ratio of 0.99.

Trending Headlines about Forgent Power Solutions

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

• Positive Sentiment: Forgent reported quarterly EPS of $0.25, ahead of the $0.24 consensus estimate, while revenue reached $461.67 million—up 94.3% year over year. The results marked a sharp swing toward profitability and reinforced confidence in the company’s execution. Forgent (FPS) Powers 11% Higher on Swing to Profits, Upbeat Outlook
• Positive Sentiment: Management’s fiscal 2027 outlook exceeded expectations, calling for EPS of $1.26–$1.40 versus consensus of $1.14 and revenue of $2.4–$2.6 billion versus expectations of $2.1 billion. The guidance implies roughly 76% revenue growth at the midpoint. Forgent Power Solutions Stock Rises 11% After Issuing 2027 Guidance
• Positive Sentiment: Record bookings and a backlog reportedly approaching $3 billion suggest strong forward demand, particularly for Forgent’s custom-engineered powertrain and power-infrastructure solutions used in data centers. FPS Q4 Earnings Beat Estimates on Powertrain Solutions Growth
• Positive Sentiment: Analyst sentiment strengthened after the report. Oppenheimer reaffirmed an Outperform rating with a $60 target, while TD Cowen raised its Buy target to $76; JPMorgan described the recent correction as overdone and highlighted the company’s potential for more than 80% organic growth in fiscal 2027. Forgent Power Offers Growth Blueprint, Oppenheimer Says
• Neutral Sentiment: Forgent’s first-quarter fiscal 2027 revenue outlook of $445 million–$465 million is broadly consistent with the $456.7 million analyst estimate, suggesting continued momentum but limited near-term surprise from this quarter’s forecast.
• Neutral Sentiment: Unusually heavy trading in FPS call options indicates elevated speculative interest and expectations for further volatility, though options activity does not guarantee continued gains. Stock Traders Purchase Large Volume of Forgent Power Solutions Call Options

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on FPS shares. Zacks Research lowered shares of Forgent Power Solutions from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, September 8th. Weiss Ratings cut shares of Forgent Power Solutions from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Tuesday, July 28th. KeyCorp restated an “overweight” rating on shares of Forgent Power Solutions in a research note on Wednesday. Oppenheimer reaffirmed an “outperform” rating and issued a $60.00 price target on shares of Forgent Power Solutions in a report on Wednesday. Finally, 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 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Forgent Power Solutions currently has an average rating of “Moderate Buy” and an average price target of $57.00.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of FPS. Value Aligned Research Advisors LLC purchased a new position in shares of Forgent Power Solutions during the 2nd quarter valued at $176,441,000. Spyglass Capital Management LLC purchased a new stake in shares of Forgent Power Solutions in the second quarter worth $39,401,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new stake in Forgent Power Solutions during the second quarter valued at $23,123,000. Bank of New York Mellon Corp boosted its stake in Forgent Power Solutions by 813.0% during the second quarter. Bank of New York Mellon Corp now owns 326,317 shares of the company’s stock valued at $18,228,000 after buying an additional 290,577 shares during the period. Finally, Squarepoint Ops LLC purchased a new position in Forgent Power Solutions during the second quarter worth about $13,440,000.

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.