Forgent Raises Fiscal 2027 Outlook After Record Quarter

The Tip Desk · November 12, 2026 · 3 min read

First-quarter revenue reached $479 million, above the high end of guidance, as the company lifted full-year sales to $2,450 million to $2,650 million.

Forgent Power Solutions (FPS), a designer and manufacturer of electrical distribution equipment for data centers, the power grid and energy-intensive industrial facilities, reported fiscal first-quarter 2027 revenue of $479 million, the highest quarterly total in the company’s history and above the high end of its prior guidance.

The quarter closed a month in which the company had already said revenue and Adjusted EBITDA would exceed the high end of its ranges. Chief Executive Officer Gary Niederpruem attributed the beat to strong production-ramp execution that lifted throughput and improved cost absorption.

Net income was $55 million, or $0.18 a share, versus $15.6 million a year earlier. Net income margin was 11.5%. Adjusted EBITDA was $105 million, with a 21.9% margin. The company said the Adjusted EBITDA margin was ahead of its expectations on higher throughput and better cost absorption. Adjusted EPS was $0.24.

Cash flow from operations was $136 million, up $130 million from a year earlier. Capital expenditures were $32 million. The company said the cash-flow increase reflected higher earnings and favorable timing of customer deposits and milestone payments, while it continued planned working-capital investment, primarily inventory, to support the production ramp.

Sequentially, the $479 million revenue print sat slightly above fiscal fourth-quarter 2026 revenue of $462 million. Adjusted EBITDA of $105 million and the 21.9% margin were below the fourth quarter’s $113 million and 24.4% margin. Net income of $55 million and the 11.5% margin were below the fourth quarter’s $66 million and 14.3% margin.

On the balance sheet at September 30, 2026, deferred revenue was $423 million, up from $264 million at June 30, 2026. Inventory was $346 million. Cash and cash equivalents were $200 million.

Niederpruem said backlog fully covers fiscal 2027 guidance and that the company is raising its full-year outlook. Forgent now expects fiscal 2027 revenue of $2,450 million to $2,650 million, 80% year-over-year growth at the midpoint, versus prior guidance of $2,400 million to $2,600 million. Adjusted EBITDA guidance is $587 million to $637 million, 90% growth at the midpoint, versus $575 million to $625 million. Adjusted EPS guidance is $1.30 to $1.44, 101% growth at the midpoint, versus $1.26 to $1.40.

The chief executive said the company is gaining traction with multiple frontier AI labs and hyperscalers through direct sales and expects orders from those customers to build through fiscal 2027 and into fiscal 2028. With much of new manufacturing capacity now online, he said the next phase is converting expanded scale into operating leverage through standardized processes, productivity, sourcing discipline and more consistent execution.

Amy Ard, previously executive vice president of finance, was named chief financial officer. Juan Macias was named president of Solutions & Services and Jamie Brown president of Transformers. Ard said the role lets her apply the finance platform she helped build to performance-optimization work across margins, working capital and cash flow.