Forgent Power Solutions (NYSE:FPS) Announces Earnings Results

Forgent Power Solutions (NYSE:FPS) released its quarterly earnings data on Thursday. The company reported $0.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.18 by $0.06, FiscalAI reports. Forgent Power Solutions had a return on equity of 24.59% and a net margin of 5.76%. The firm had revenue of $478.57 million during the quarter. The company’s quarterly 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 Price Performance

Forgent Power Solutions stock traded down $0.77 on Friday, reaching $21.38. The company’s stock had a trading volume of 5,397,082 shares, compared to its average volume of 7,279,417. The business’s fifty day moving average price is $31.84 and its 200 day moving average price is $38.02. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.07 and a current ratio of 1.54. The company has a market cap of $6.51 billion and a price-to-earnings ratio of 55.13. Forgent Power Solutions has a twelve month low of $17.67 and a twelve month high of $66.00.

Analyst Upgrades and Downgrades

FPS has been the topic of several analyst reports. Roth Capital started coverage on shares of Forgent Power Solutions in a report on Friday, November 6th. They issued a “buy” rating on the stock. TD Cowen cut their price target on shares of Forgent Power Solutions from $76.00 to $55.00 and set a “buy” rating for the company in a report on Friday. Oppenheimer reduced their price target on shares of Forgent Power Solutions from $60.00 to $40.00 and set an “outperform” rating on the stock in a research report on Friday. Clear Str raised shares of Forgent Power Solutions to a “strong-buy” rating in a research note on Monday, October 26th. Finally, Morgan Stanley set a $45.00 price objective on shares of Forgent Power Solutions in a report on Friday, October 16th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Forgent Power Solutions presently has a consensus rating of “Moderate Buy” and a consensus target price of $47.00.

Institutional Trading of Forgent Power Solutions

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. First Trust Advisors LP raised its holdings in shares of Forgent Power Solutions by 12,661.7% in the third quarter. First Trust Advisors LP now owns 11,030,700 shares of the company’s stock valued at $412,989,000 after buying an additional 10,944,264 shares during the last quarter. State Street Corp grew its holdings in Forgent Power Solutions by 55.7% during the 3rd quarter. State Street Corp now owns 3,291,083 shares of the company’s stock worth $123,195,000 after acquiring an additional 1,177,179 shares during the last quarter. Value Aligned Research Advisors LLC bought a new stake in Forgent Power Solutions during the 2nd quarter worth about $176,441,000. William Blair Investment Management LLC increased its position in Forgent Power Solutions by 16.3% in the 3rd quarter. William Blair Investment Management LLC now owns 2,925,175 shares of the company’s stock valued at $109,519,000 after acquiring an additional 408,905 shares in the last quarter. Finally, Phoenix Financial Ltd. increased its position in Forgent Power Solutions by 50.0% in the 3rd quarter. Phoenix Financial Ltd. now owns 2,493,924 shares of the company’s stock valued at $93,374,000 after acquiring an additional 831,707 shares in the last quarter.

Forgent Power Solutions News Summary

Here’s some of the latest news about FPS:

• Positive Sentiment: Forgent raised its FY2027 outlook to $1.30–$1.44 EPS and $2.5–$2.7 billion in revenue. Management also cited building AI-lab and hyperscaler orders through 2028, supporting expectations for continued demand. MSN article on orders and guidance
• Negative Sentiment: Despite the beat and raised outlook, coverage said shares came under pressure because full-year guidance was viewed as falling short of expectations. The company’s relatively high valuation may also have left little room for anything short of a stronger outlook. Yahoo Finance article on guidance
• Negative Sentiment: Oppenheimer cut its target to $40, TD Cowen to $55, KeyCorp to $46, Baird to $38, and Bernstein to $33. All retained outperform, buy, or overweight ratings, but the broad target reductions could weigh on sentiment. TD Cowen ratings

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.