The massive guidance raise and record backlog signal a multi-year growth trajectory. Traders should watch for potential upside to FY2027 guidance as the company executes on its $3.0B backlog and new capacity comes online. The stock is likely to re-rate higher given the accelerating growth profile and expanding margins.
Price Chart
Executive Summary
Forgent Power Solutions reported a record fiscal Q4 2026, with revenue of $462M (+94% YoY) and Adjusted EPS of $0.25, beating the $0.24 consensus. The company also initiated FY2027 guidance for revenue of $2.4B-$2.6B and Adjusted EPS of $1.26-$1.40, well above prior forecasts, driven by a record $3.0B backlog and accelerating demand from data centers and grid infrastructure. The results and guidance significantly exceeded expectations, confirming the company's strong execution and market share gains in a high-growth environment.
Key Financial Metrics
Key Facts
- Q4 FY2026 revenue of $461.7M, up 94% YoY and above the high-end of May guidance ($392M-$432M).
- Adjusted EPS of $0.25 beat the $0.24 consensus estimate by 4.2%.
- Record quarterly bookings of $1.5B, a 375% YoY increase, with a 3.3x book-to-bill ratio.
- Backlog reached an all-time high of $3.0B, up 256% YoY and 53% sequentially.
- FY2027 guidance initiated: revenue $2.4B-$2.6B (76% YoY growth at midpoint) and Adjusted EPS $1.26-$1.40 (95% YoY growth at midpoint).
- Net income margin expanded to 14.3% in Q4, up 800 bps QoQ, and Adjusted EBITDA margin reached 24.4%.
- Operating cash flow was $74M in Q4, a $81M improvement YoY.
- Announced a $35M incremental capacity expansion for Powertrain Solutions in Tijuana, Mexico.
Financial Impact
FY2027 revenue guidance of $2.4B-$2.6B represents ~76% YoY growth at the midpoint, with Adjusted EPS guidance of $1.26-$1.40 implying ~95% YoY growth. The company's record $3.0B backlog provides high visibility into this growth.
Risk Factors
- Execution risk on the production ramp to meet record backlog demand.
- Potential for margin compression from accelerated hiring and new facility startup costs.
- Dependence on sustained data center and AI infrastructure investment cycles.
- Raw material cost inflation (steel, copper) could pressure gross margins.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0002080126-26-000034 |
| Document: fps-20260915.htm | 0002080126-26-000034 |
| Document: 0002080126-26-000034-index-headers.html | 0002080126-26-000034 |
| Document: 0002080126-26-000034-index.html | 0002080126-26-000034 |
| Document: 0002080126-26-000034.txt | 0002080126-26-000034 |
| 8-K Data (Synthetic) | 0002080126-26-000034 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 15, 2026 17d ago | 8-K | $31.36 $39.44 | ▲ +25.77% | ▲ +24.95% | $40.27 (+28.41%) |
Aug 22, 2026 5w ago | Institutional Cluster | $32.19 $30.54 | ▼ −5.13% | ▼ −5.59% | $40.27 (+25.10%) |
Jul 2, 2026 13w ago | EFFECT | $46.86 $46.15 | ▲ +1.52% | ▲ +2.45% | $40.27 (+14.06%) |
Jun 29, 2026 13w ago | S-1 | $55.86 $47.50 | ▼ −14.97% | ▼ −15.57% | $40.27 (−27.91%) |
May 30, 2026 17w ago | 424B4 | $56.35 $59.13 | ▼ −4.93% | ▼ −7.68% | $40.27 (+28.54%) |
May 29, 2026 18w ago | EFFECT | $54.66 $59.13 | ▼ −8.18% | ▼ −10.70% | $40.27 (+26.33%) |
May 26, 2026 18w ago | S-1 | $47.30 $56.88 | ▼ −20.25% | ▼ −19.05% | $40.27 (+14.86%) |
May 14, 2026 20w ago | 8-K | $50.19 $48.52 | ▼ −3.33% | ▼ −2.61% | $40.27 (−19.76%) |
Mar 24, 2026 27w ago | S-1 | $32.47 $29.13 | ▼ −10.29% | ▼ −10.04% | $40.27 (+24.02%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access