Forgent Power Solutions Stock Rises on Record Q4, Fresh Analyst Target Hike

Forgent Power Solutions, Inc. (NYSE:FPS) shares are trading higher Wednesday on continued momentum after the company reported record fourth quarter and full year 2026 results this week. Forgent Power Solutions shares are powering higher. What’s fueling FPS momentum? Forgent Power Solutions Q4 Highlights Forgent on Tuesday reported fourth-quarter adjusted earnings per share of 25 cents, beating the consensus estimate of 24 cents. In addition, the company reported revenue of $461.67 million, beating the consensus estimate of $429.94 million. Revenue was up 94% year-over-year, with bookings of $1.5 billion, up 375% year-over-year and representing a 3.3x book-to-bill ratio. Backlog reached $3 billion, up 256% year-over-year. Adjusted EBITDA rose 163% year-over-year to $113 million, with adjusted EBITDA margin up roughly 200 basis points to 24.4%. Revenue, adjusted EBITDA, and adjusted net income all exceeded the high end of the company’s May guidance. “We booked more than $1.5 billion of orders in the fourth quarter — an amount that exceeded our total revenue for the full fiscal year — highlighting the strength of our offerings,” said Gary Niederpruem, CEO of Forgent. “Our performance demonstrates that Forgent is not only benefiting from industry growth, but also gaining share and significantly outpacing the broader market.” Forgent also announced a $35 million investment to expand Powertrain Solutions manufacturing capacity at its Tijuana, Mexico campus, expected to come online in the fourth quarter of fiscal 2027 and increase the company’s total revenue capacity to approximately $5.8 billion. The company issued revenue guidance above estimates and guided for full-year adjusted earnings of $1.26 to $1.40 per share, versus estimates of $1.14 per share. Following the earnings beat, TD Cowen analyst Michael Elias maintained a Buy rating on Forgent Power Solutions and raised the price target from $73 to $76, citing strong results. Forgent Shares Climb FPS Price Action: At the time of publication on Wednesday, Forgent shares were trading 8.10% higher at $33.90, according to data from Benzinga Pro. Read Also: Stock Market Today: S&P 500, Dow, Nasdaq 100 Futures Gain Ahead of FOMC's Anticipated Rate Hike Decision— INTC, SKHY, LEN, TCOM in Focus (UPDATED) This illustration was generated using artificial intelligence via Midjourney.