Forgent says fiscal 2027 first-quarter revenue and earnings will exceed prior guidance
Key Facts
Forgent Power Solutions confirmed that revenue for the first quarter of its fiscal 2027 will exceed the upper end of its previous guidance range, in an update posted on its investor relations website. The company said adjusted earnings before interest, taxes, depreciation and amortization for the same quarter "will exceed the upper end" as well, with the update covering both sales and the adjusted profitability measure. The announcement concerns the fiscal quarter ended September 30, 2026, which follows a fiscal year of strong growth in the company's business. Forgent designs and manufactures power distribution equipment used in data centers and power grids, according to its official corporate profile. Its equipment is also used in energy-intensive industrial facilities, among the markets the company serves with power distribution solutions. Revenue for the fourth quarter of the previous fiscal year, which ended in June 2026, was $462 million, according to the annual results statement. Adjusted earnings before interest, taxes, depreciation and amortization for that quarter totaled $113 million.
For the fiscal year ended June 2026, Forgent reported revenue of $1420 million, according to its annual results statement. That represented an increase of 89% from the previous fiscal year, providing the annual performance base from which the company entered its new year. Revenue guidance for fiscal 2027, issued in September, ranged from $2400 million to $2600 million. Its annual guidance for adjusted earnings before interest, taxes, depreciation and amortization ranged from $575 million to $625 million, according to the same statement. These ranges cover the full fiscal year, while the confirmation that performance will exceed the upper end of guidance concerns its first quarter. Following the annual results announcement, TD Cowen raised its price target for Forgent shares to $76 from $73, according to a report published by Investing on September 16, 2026. The firm maintained its buy recommendation, in an assessment issued after the previous year's results and before the first-quarter performance update.
On the demand side, Forgent booked new orders worth $1503 million during the fiscal quarter ended June 2026, according to the annual results statement. The value of those orders rose 375% year on year compared with the corresponding quarter of the previous fiscal year. Backlog stood at about $3.0 billion at the fiscal year-end on June 30, 2026, leaving the company entering the current year with its highest backlog on record. On production capacity, the company announced in September a $35 million investment to expand manufacturing of power systems solutions at its Tijuana campus in Mexico. Forgent linked the project to growing demand for modular solutions, the reason it cited for expanding manufacturing activity at the campus. It also projected capital expenditure of about $87 million during fiscal 2027, according to the spending plan in its annual statement. This spending includes expansion projects and maintenance expenditure, alongside the Tijuana project, whose value it announced separately.
Alongside the quarterly performance update, Forgent announced a change in its financial leadership, appointing Amy Ard as chief financial officer. Ard had served as executive vice president of finance before her appointment to the new role, according to the company's statement on the management change. Forgent said in the same statement that Ryan Fiedler "will transition from his current position to an external adviser role." The company is scheduled to report its fiscal 2027 first-quarter results before the market opens on November 12, 2026, after confirming that revenue and adjusted earnings will exceed the upper end of its previous guidance. Management will hold a call to discuss the results on the same day at 11:00 a.m. U.S. Eastern Time.