Shares of Forgent Power Solutions (NYSE: FPS) jumped on Tuesday after the electrical infrastructure manufacturer reported torrid artificial intelligence (AI)-fueled growth.
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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.
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