Forgent Power lifts fiscal 2027 outlook as Q1 revenue jumps 69% to $478.6M

Forgent Power Solutions raised its fiscal 2027 revenue outlook to a range of $2.45 billion to $2.65 billion on Thursday, after first-quarter revenue rose 69% to $478.6 million — the highest quarterly figure in the company's history. The New York Stock Exchange-listed maker of switchgear, transformers and other electrical distribution equipment had previously guided to $2.40 billion to $2.60 billion. At the midpoint, the new range represents 80% growth, the company said.

The quarter ended September 30. Forgent's fiscal year ends in June, so fiscal 2027 runs through June 30, 2027.

"Based on our strong first quarter commercial and operational execution, together with backlog that fully covers our fiscal 2027 guidance, we are raising our full-year outlook," chief executive Gary Niederpruem said. He added: "We are also gaining meaningful traction with multiple frontier AI labs and hyperscalers through our direct sales strategy, and we expect orders from these important customers to build through fiscal 2027 and into fiscal 2028."

How strong were the profit and cash numbers?

Net income rose 252% to $54.8 million, or 18 cents a diluted share. Adjusted earnings per share came in at 24 cents. Adjusted EBITDA climbed 61% to $104.9 million, a 21.9% margin. That margin sat below the 23.0% recorded a year earlier but beat the company's own expectations, because higher throughput spread fixed costs across more output.

For the comparable quarter ended September 2025, Forgent posted revenue of $283.3 million, net income of $15.6 million and adjusted EBITDA of $65.1 million. Revenue in the latest quarter rose about 4% from the June 2026 quarter's $461.7 million, by MLQ.ai's calculation based on SEC-derived financials.

Operating cash flow jumped to $136.1 million from $5.9 million a year earlier. Customer deposits and milestone payments drove the improvement: deferred revenue climbed to $423.3 million at September 30, up from $263.9 million at June 30.

What does the raised guidance include?

The updated outlook lifts several measures:

• Revenue: $2,450 million to $2,650 million, up from $2,400 million to $2,600 million.
• Adjusted EBITDA: $587 million to $637 million, up from $575 million to $625 million.
• Adjusted EPS: $1.30 to $1.44, up from $1.26 to $1.40.

The company said its backlog fully covers the fiscal 2027 guidance.

Forgent had already signaled strength. It said last month that the quarter would beat the top of its guidance ranges.

Where is the balance sheet heading?

Inventory climbed by roughly $96 million to $346.2 million as the company stocked up for its production ramp. Capital spending totaled $32 million for the quarter.

The trajectory of quarterly revenue shows a steady climb across the period covered by MLQ.ai's SEC-derived data: $186 million in March 2025, $238 million in June 2025, $283 million in September 2025, $296 million in December 2025, $379 million in March 2026, $462 million in June 2026 and $479 million in September 2026.

Who runs the numbers now?

Niederpruem said much of Forgent's new manufacturing capacity is now online, and the company's focus is turning to margins. Amy Ard was promoted to chief financial officer. The company was due to hold its earnings call at 11 a.m. ET on the day of the release.

The demand signal behind the numbers is specific: Forgent builds the electrical distribution equipment that carries power from the grid connection to a data center's racks, placing it directly in the build-out path of frontier AI labs and hyperscalers. With orders from those customers expected to build through fiscal 2027 and into fiscal 2028, and a backlog that already covers the raised revenue guidance, Forgent enters the rest of the fiscal year with production, not demand, as its main operating constraint.