Forgent Power Shares Fall 4.35% Despite 69% Revenue Growth and Higher FY2027 Guidance

Forgent Power Solutions, Inc. (NYSE:FPS) shares declined 4.35% in pre-market trading on Thursday after the electrical distribution equipment manufacturer reported first-quarter fiscal 2027 results above expectations and raised its annual financial guidance.

For the quarter ended September 30, 2026, revenue increased 69% to $479 million from $283 million a year earlier, while adjusted earnings per share reached $0.24.

Net income rose 252% year over year to $55 million, with adjusted EBITDA increasing 61% to $105 million. The company reported a net income margin of 11.5% and an adjusted EBITDA margin of 21.9%.

Forgent attributed its quarterly performance to increased manufacturing output and improved cost absorption as production capacity expanded. Results exceeded the upper end of the company’s previous guidance ranges.

Operating cash flow increased by $130 million year over year to $136 million, while capital expenditures totalled $32 million, primarily supporting manufacturing capacity expansion.

Forgent Raises FY2027 Revenue and Earnings Forecasts

The company increased its fiscal 2027 adjusted earnings per share guidance to between $1.30 and $1.44. The midpoint of $1.37 remains below the analyst consensus estimate of $1.39.

Full-year revenue is now expected to reach $2.45 billion to $2.65 billion. The midpoint of $2.55 billion is slightly above the market consensus of $2.54 billion.

“Based on our strong first quarter commercial and operational execution, together with backlog that fully covers our fiscal 2027 guidance, we are raising our full-year outlook,” said Chief Executive Gary Niederpruem.

“Robust customer demand and strong execution on our production ramp give us greater confidence in our higher outlook,” he added.

The company indicated that its existing order backlog provides coverage for its updated fiscal 2027 financial projections.

Forgent Power Solutions stock price