Forgent Posts Record Quarterly Revenue of $479 Million, Raises 2027 Outlook
Key Facts
Forgent Power Solutions posted record revenue of $479 million in the first fiscal quarter ended September 30, 2026, up 69% year over year, and said revenue and adjusted earnings exceeded the high end of its previous guidance. The company raised its fiscal 2027 outlook, citing commercial and operational execution and a backlog that covers its annual guidance. Results showed net income of $55 million, up 252% year over year, and a net margin of 11.5%. Adjusted EBITDA was $105 million, up 61%, with a margin of 21.9%. Chief Executive Gary Niederbrom said, "Strong commercial and operational execution in the first quarter, together with a backlog that covers our fiscal 2027 guidance, is driving us to raise our full-year outlook."
Diluted earnings per share were $0.18, while adjusted earnings per share reached $0.24 for the quarter. The company attributed revenue and adjusted earnings exceeding its previous guidance to the execution of its production ramp, higher productivity and improved cost absorption. In its results statement, it said, "Strong execution of the production ramp drove higher production volume and improved cost absorption." The company thus linked the improved results to execution and production factors, alongside the demand underpinning its updated outlook. Niederbrom said this operational and commercial performance was one reason for raising the annual outlook.
Forgent raised its fiscal 2027 revenue outlook to $2.45–$2.65 billion, saying the midpoint represents 80% year-over-year growth. It also raised its adjusted EBITDA outlook to $587–$637 million, with expected year-over-year growth of 90% at the midpoint. The adjusted earnings-per-share outlook is now $1.30–$1.44, which the company said represents 101% year-over-year growth at the midpoint. The previously published outlook for the same fiscal year called for revenue of $2.4–$2.6 billion, adjusted EBITDA of $575–$625 million and adjusted earnings per share of $1.26–$1.40. The revision raises the lower and upper bounds of all three ranges compared with the previous guidance.
Fiscal fourth-quarter 2026 results provide context for the company's growth ahead of the first-quarter report: revenue was $462 million, up 94% year over year. Forgent booked orders worth $1.503 billion that quarter, up 375% year over year, and its book-to-bill ratio was 3.3 times. Backlog also reached $3.0 billion on June 30, 2026, up 256% from the same period a year earlier. Niederbrom said the backlog covers fiscal 2027 guidance, supporting the increase to the annual outlook. These figures provide context for the scale of demand cited in the company's statement, while the fourth-quarter figures remain separate from the current first-quarter results.
Forgent said it is gaining traction with leading AI labs and hyperscalers through its direct-sales strategy. It said it expects orders from these customers to increase during fiscal 2027 and extend into fiscal 2028. Niederbrom tied confidence in the higher outlook to strong demand and progress in executing the production ramp. Cash flow from operations was also $136 million in the first quarter, up $130 million year over year. The company said the timing of customer deposits and milestone payments contributed positively to cash flow during the period.
Forgent announced on October 22 that first-quarter fiscal 2027 revenue and adjusted EBITDA would exceed the high end of its previous guidance ranges. In its earnings announcement, the company scheduled a call to discuss the first quarter for November 12, 2026, at 11 a.m. Eastern Time. FPS shares closed at $21.48 on November 10 and then at $24.57 on November 11, according to EL7 data. These prices are the closing prices for the two sessions cited; the evidence did not include verified session highs or lows. The November 12 call is part of the company's follow-up on its results and updated fiscal 2027 outlook.