Forgent Power Solutions (NYSE:FPS) Posts Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Forgent Power Solutions (NYSE:FPS) posted its quarterly earnings data on Thursday. The company reported $0.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.18 by $0.06, FiscalAI reports. Forgent Power Solutions had a net margin of 5.76% and a return on equity of 24.59%. The company had revenue of $478.57 million for the quarter. The company’s revenue was up 68.9% compared to the same quarter last year. Forgent Power Solutions updated its FY 2027 guidance to 1.300-1.440 EPS.

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

• Forgent reported record first-quarter revenue of $479 million, up 69%, and Adjusted EBITDA of $105 million, up 61%, beating the high end of its guidance. It raised FY2027 guidance to $2.45–$2.65 billion in revenue and $587–$637 million in Adjusted EBITDA.
• Management said first-quarter orders were nearly double year over year, led by data centers and industrial markets. Backlog fully covers the updated FY2027 outlook, with about 40% scheduled beyond FY2027, mostly in FY2028.
• The company reported progress in direct sales to AI labs and hyperscalers, including a volume order from one AI lab and product agreements with two hyperscalers. Management said these customer relationships could contribute more meaningfully to growth in FY2028 and beyond, while noting that qualification and sales cycles can take quarters.
• Grid orders moderated, particularly in renewables and battery storage, as projects were pulled forward ahead of a deadline and developers paused amid policy uncertainty. Management characterized the softness as primarily timing-related, but said recovery depends on uncertainty clearing.
• Management said operational initiatives have generated more than $5 million in annualized savings from bringing work in-house, about $5 million from reducing contract labor, and more than $30 million in working-capital improvement. It expects sequential margin expansion in FY2027, while larger productivity and cost opportunities may take longer to realize.

Forgent Power Solutions Stock Down 9.6%

Shares of NYSE:FPS traded down $2.37 during trading on Thursday, hitting $22.20. 16,138,813 shares of the company were exchanged, compared to its average volume of 7,290,329. The stock has a market cap of $6.76 billion and a price-to-earnings ratio of 56.92. Forgent Power Solutions has a fifty-two week low of $17.67 and a fifty-two week high of $66.00. The firm has a fifty day moving average price of $31.98 and a two-hundred day moving average price of $38.10. The company has a current ratio of 1.54, a quick ratio of 1.07 and a debt-to-equity ratio of 0.86.

Institutional Investors Weigh In On Forgent Power Solutions

Large investors have recently made changes to their positions in the stock. Tidal Investments LLC acquired a new stake in Forgent Power Solutions in the second quarter valued at $7,858,000. Spyglass Capital Management LLC bought a new position in shares of Forgent Power Solutions in the 2nd quarter valued at about $39,401,000. Scholtz & Company LLC bought a new position in shares of Forgent Power Solutions in the 2nd quarter valued at about $1,892,000. Moore Capital Management LP acquired a new position in shares of Forgent Power Solutions during the 2nd quarter worth about $10,401,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al increased its stake in shares of Forgent Power Solutions by 223.2% during the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 54,300 shares of the company’s stock worth $2,033,000 after purchasing an additional 37,500 shares during the last quarter.

Key Stories Impacting Forgent Power Solutions

These are some of the FPS stories that stood out recently:

• Positive Sentiment: Revenue reached a quarterly record of $478.6 million, up 69% year over year, while adjusted earnings of $0.24 per share topped the $0.18 analyst consensus. The company said results exceeded the high end of its guidance. Forgent Q1 results and outlook
• Positive Sentiment: Forgent raised its fiscal 2027 outlook and guided to $1.30–$1.44 in EPS and $2.5–$2.7 billion in revenue. Its CEO also pointed to AI-lab and hyperscaler orders building through 2028, supporting the longer-term demand story. CEO comments and updated guidance
• Negative Sentiment: FPS shares fell following the report despite the beat. The guidance range’s low end is below the $1.34 EPS consensus, which may have disappointed investors looking for a stronger outlook; the reaction also suggests expectations were elevated. Shares fall as investors assess guidance

Analyst Ratings Changes

Several brokerages recently commented on FPS. Robert W. Baird started coverage on shares of Forgent Power Solutions in a report on Wednesday, July 15th. They set an “outperform” rating and a $55.00 target price for the company. Clear Str upgraded shares of Forgent Power Solutions to a “strong-buy” rating in a research note on Monday, October 26th. Oppenheimer reiterated an “outperform” rating and issued a $60.00 price target on shares of Forgent Power Solutions in a research note on Wednesday, September 16th. Jefferies Financial Group cut their price target on shares of Forgent Power Solutions from $47.00 to $36.00 and set a “buy” rating on the stock in a research report on Friday, October 23rd. Finally, Morgan Stanley set a $45.00 price objective on shares of Forgent Power Solutions in a research note on Friday, October 16th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $53.21.

Forgent Power Solutions Company Profile

Forgent Power Solutions designs and manufactures electrical power distribution equipment for applications that require reliable, continuous power. Its products support the delivery and management of electricity within facilities, including data centers and other commercial and industrial environments. The company focuses on equipment used in critical power systems, where dependable distribution is essential to operations. Forgent serves customers primarily in North America, with products and services supporting facilities in other markets as well.