DAYTON, Minnesota, May 14, 2026, 08:03 CDT
- Forgent bumped up its fiscal 2026 revenue outlook, now targeting $1.35 billion to $1.39 billion.
- Bookings for the third quarter landed at $867 million—more than double the revenue generated in the same stretch.
- Backlog climbed to $1.98 billion, lifted by continued strong demand from both data-center and grid customers.
Forgent Power Solutions boosted its fiscal 2026 guidance Thursday, reporting record Q3 orders and backlog. The stock jumped ahead of the bell, as investors tallied another signal of robust demand from AI-fueled data center buildouts. The company posted its results with the U.S. Securities and Exchange Commission that same day.
The clock’s ticking. Forgent, fresh to the public markets, steps into a sector where it’s no longer just about the semis—power supply has become the squeeze point for AI expansion. The firm’s specialty: designing and manufacturing electrical distribution gear, the kind that shuttles electricity safely across data centers, the grid, and heavy industry.
Forgent reported that bookings jumped 308% year-over-year, hitting $867 million, easily outpacing revenue growth, which climbed 103% to $378.7 million. Customers keep placing orders faster than Forgent can turn them into sales. The book-to-bill ratio landed at 2.3—more than double last year’s 1.1.
The company reported its backlog climbed to $1.98 billion as of March 31, marking a 157% jump year-over-year and a 33% gain since Dec. 31. CEO Gary Niederpruem pointed to data-center and grid demand, manufacturing ramp-ups and faster lead times as drivers, noting that demand “continues to outpace” forecasts. Business Wire
Net income jumped to $24.5 million, up from $8.4 million a year ago. Adjusted EBITDA, which strips out a handful of items, almost doubled to $84.7 million. Adjusted EBITDA margin reached 22.4%.
Forgent lifted its fiscal 2026 outlook, projecting revenue in a range of $1.35 billion to $1.39 billion, with adjusted EBITDA pegged between $310 million and $320 million. For the fourth quarter, the company put revenue guidance at $392 million to $432 million and noted it’s “fully booked” versus its Q4 targets. Business Wire
Before the bell, shares changed hands at $45.52—$2.51 higher than the last close, market data showed. Premarket action tends to be jumpy, with light volume, though this early move highlights investors watching to see if Forgent’s backlog will actually translate into revenue and not erode margins.
Forgent’s IPO in February pulled in roughly $1.51 billion, with shares offered at $27 each. The NYSE debut gave the company a valuation close to $8 billion, Reuters noted, thanks to strong demand from investors looking for exposure to AI infrastructure suppliers.
That exposure pits Forgent against some heavyweights in the industrial sector. According to its prospectus, the company’s data-center power gear goes up against Vertiv’s power management lineup, Hubbell’s PCX division, and Schneider Electric. For grid and industrial applications, it’s up against names like Eaton, Hitachi Energy, GE-Prolec, and nVent.
The bear case? It’s easy enough to spot. Gross margin barely budged this quarter. Executives flagged that hiring, fixed overhead from new campuses, and some one-off startup expenses continued to drag on the bottom line. Forgent also cautioned investors: backlog doesn’t always turn into revenue or profit as quickly as hoped, and any holdups getting new facilities up and running could put a dent in growth.
The company reported $28 million in capital spending for the quarter, citing capacity expansion as the main driver. Management says the expansion plan is still tracking toward substantial completion by fiscal year-end. Once finished, Forgent projects its footprint will be large enough to support as much as $5 billion in annual revenue, and it anticipates a notable drop in capital expenditures.
“Forgent gives investors a shot at AI through the data-center power angle, not the usual tech names,” IPOX Research Associate Lukas Muehlbauer told Reuters around the time of the listing. That thesis faces the market now, quarter by quarter: orders are coming in strong, but margins remain under pressure from the cost of scaling up. Investors are watching closely to see just how quickly the new capacity ramps. Reuters
