Why Forgent Power Stock Popped Today
Key Points
Forgent's sales and profits are growing rapidly.
Management expects revenue to increase by 76% in fiscal 2027.
- These 10 stocks could mint the next wave of millionaires ›
Shares of Forgent Power Solutions (NYSE: FPS) jumped on Tuesday after the electrical infrastructure manufacturer reported torrid artificial intelligence (AI)-fueled growth.
Image source: Getty Images.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Profiting from the data center build-out bonanza
Forgent's revenue surged 94% year over year to $462 million in its fiscal 2026 fourth quarter, which ended on June 30.
"Our customers needed a partner capable of providing engineering expertise, execution certainty, and scalable capacity as they pursued unprecedented build-outs, and Forgent proved it could meet those requirements," CEO Gary Niederpruem said.
Forgent's bookings soared 375% to $1.5 billion, bringing its backlog to $3 billion.
"Our performance demonstrates that Forgent is not only benefiting from industry growth, but also gaining share and significantly outpacing the broader market," Niederpruem said.
All told, Forgent's adjusted net income rocketed 275% to $77 million, or $0.25 per share.
Ramping production
Looking ahead, Forgent sees revenue rising roughly 76% to $2.5 billion in fiscal 2027, with adjusted earnings per share growing 95% to $1.33 at the midpoint of its guidance range.
To meet the booming demand for its equipment, Forgent plans to invest $35 million to boost manufacturing capacity at its Tijuana, Mexico, facility. The project is expected to lift the company's revenue potential to about $5.8 billion.
"We enter fiscal 2027 better positioned, better resourced, and more confident in our ability to execute than at any point in our history," Niederpruem said during a conference call with analysts.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $548,453!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $63,537!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $433,160!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
See the 3 stocks »
*Stock Advisor returns as of September 15, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Forgent Power Solutions. The Motley Fool has a disclosure policy.
Recommended Articles
