Forgent Power Shares Surge Nearly 12% After Record Quarter and TD Cowen Price-Target Hike

DAYTON, Minn. — Forgent Power Solutions shares rose 11.99% to $35.11 in late-morning trading Wednesday, up $3.76, a day after the electrical-equipment maker posted a record fourth quarter and TD Cowen raised its price target.

The Class A stock closed Tuesday at $31.36 after a 9.5% jump on the earnings print. Tuesday's volume topped 32 million shares. The 52-week range is $25.95 to $66.00. Market value is about $10 billion to $11 billion depending on the print. The company went public in February at $27.

On Tuesday, Forgent reported fiscal fourth-quarter adjusted earnings of 25 cents a share, against a 24-cent consensus, and revenue of $461.67 million, against $429.94 million expected. Revenue rose 94% from a year earlier. Bookings were $1.5 billion, up 375%, a 3.3 times book-to-bill. Backlog reached $3 billion, up 256%. Adjusted EBITDA was $113 million, up 163%, with margin at 24.4%, about 200 basis points higher.

Full-year fiscal 2026 revenue was $1.42 billion, up 89% from $753.2 million. Gross profit was $497.6 million. Operating income was $182.5 million. Net income attributable to Forgent was $81.8 million. Adjusted EBITDA was $322.9 million. Trailing EPS is 30 cents. The company guided full-year adjusted earnings to $1.26 to $1.40 a share, above a $1.14 estimate, and issued revenue guidance above Street figures.

TD Cowen analyst Michael Elias kept a Buy rating and lifted the target to $76 from $73. The published analyst average target is about $59 to $59.50, with a high of $73 before the Cowen move. Consensus on the name is strong buy among the small coverage group.

Forgent, based in Dayton, Minnesota, designs and builds electrical distribution gear for data centers, the grid and heavy industry: switchgear, transformers, PDUs, eHouses, power skids and related cabinets. It sells custom products and prefabricated powertrain packages meant to cut field labor. The website lists about 10 campuses, more than 2 million square feet and roughly 1,800 to 2,000 employees; filings put plant space near 2.3 million square feet after a 2025–2026 expansion. Chief executive is Gary Niederpruem. The firm was organized in 2023 and lists more than a century of predecessor manufacturing history in electrical distribution.

The 10-K filed with the results showed $97.5 million in cash, $598.5 million of variable-rate debt and a $338.9 million tax receivable agreement liability. Total debt in some summaries is higher, near $700 million. The company sold Class A stock in public offerings in May, June and July.

Wednesday's $35 handle is a rebound from $28.64 on Sept. 14, not a return to June's $66 high. The multiple is still rich on trailing earnings and thinner on the new $1.26–$1.40 guide. The trade is backlog and data-center power lead times, not a completed fiscal year. Until the next quarter shows whether a $3 billion book converts at 24% EBITDA, the stock remains a high-beta claim on AI-related electrical gear. Buyers on Wednesday paid up for the beat, the book-to-bill and the $76 target.