FPS stock has surged nearly 30% since Q4 earnings. A record $3B backlog, booming AI demand and strong EPS guidance signal more upside ahead.
The consensus price target hints at a 52.9% upside potential for Forgent Power (FPS). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.
Forgent Power Solutions beats fiscal Q4 estimates as data center demand drives Powertrain Solutions growth, while bookings and backlog reach record levels.
Forgent Power Solutions, Inc. (FPS) Q4 2026 Earnings Call Transcript
Forgent Power Solutions NYSE: FPS reported record fourth-quarter and full-year fiscal 2026 results, driven by demand across its data center, grid and industrial markets, as well as growth in its modular Powertrain Solutions business.
Forgent Power Solutions (FPS) is the focus, with concerns over its valuation and downside risk. I highlight that FPS could face a 30% decline, driven by overextended AI infrastructure expectations. The investment thesis centers on potential overvaluation relative to fundamentals and market hype.
Forgent Power Solutions is a focused data center power distribution provider, riding the AI buildout cycle with explosive revenue and backlog growth. FPS reported FY26 revenue up 89% YoY to $1.42B, with Q4 bookings up 375% YoY and a record $3B backlog, driven by modular solutions demand. FY27 guidance projects 69% revenue growth to $2.4–$2.6B and 86% EBITDA growth, with forward multiples now reasonable at 23.4x PE and 24x EV/EBITDA.
Forgent Power Solutions' Q4 outlook benefits from strong data center demand, rising bookings and backlog, though ramp-up costs may pressure margins.
The Zacks Electronics - Miscellaneous Components industry players like NVT, FPS and VICR are benefiting from the solid adoption of AI and the democratization of IoT.
FPS made it to the Zacks Rank #1 (Strong Buy) momentum stocks list on July 15th, 2026.
The consensus price target hints at a 25.9% upside potential for Forgent Power (FPS). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.
FPS posts 103% revenue growth, record $867M bookings and near-$2B backlog as AI data center demand lifts its FY2026 outlook.