Shares of Forgent Power Solutions (FPS +9.24%) jumped on Tuesday after the electrical infrastructure manufacturer reported torrid artificial intelligence (AI)-fueled growth.
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Profiting from the data center build-out bonanza
Forgent's revenue surged 94% year over year to $462 million in its fiscal 2026 fourth quarter, which ended on June 30.
"Our customers needed a partner capable of providing engineering expertise, execution certainty, and scalable capacity as they pursued unprecedented build-outs, and Forgent proved it could meet those requirements," CEO Gary Niederpruem said.
Forgent's bookings soared 375% to $1.5 billion, bringing its backlog to $3 billion.
"Our performance demonstrates that Forgent is not only benefiting from industry growth, but also gaining share and significantly outpacing the broader market," Niederpruem said.
NYSE: FPS
Key Data Points
All told, Forgent's adjusted net income rocketed 275% to $77 million, or $0.25 per share.
Ramping production
Looking ahead, Forgent sees revenue rising roughly 76% to $2.5 billion in fiscal 2027, with adjusted earnings per share growing 95% to $1.33 at the midpoint of its guidance range.
To meet the booming demand for its equipment, Forgent plans to invest $35 million to boost manufacturing capacity at its Tijuana, Mexico, facility. The project is expected to lift the company's revenue potential to about $5.8 billion.
"We enter fiscal 2027 better positioned, better resourced, and more confident in our ability to execute than at any point in our history," Niederpruem said during a conference call with analysts.
