Forgent Power Solutions Reports Record Orders, Raises Guidance on Strong Demand
Event summary
- Forgent reported Q3 2026 revenues of $379 million, up 103% year-over-year.
- Bookings hit a record $867 million, a 308% year-over-year increase.
- Backlog reached $1.98 billion, up 157% year-over-year and 33% quarter-over-quarter.
- Adjusted EBITDA margin expanded to 22.4%, up 200 basis points quarter-over-quarter.
- Forgent raised fiscal 2026 guidance, expecting revenues between $1.35 billion and $1.39 billion.
The big picture
Forgent's strong Q3 2026 results reflect robust demand in data centers and the power grid, driven by the need for customized, high-speed solutions. The company's vertical integration and agile manufacturing model position it well in a market where technical agility and speed-to-power are critical. The raised guidance underscores confidence in sustained growth, though challenges in absorbing new costs and scaling capacity remain.
What we're watching
- Demand Sustainability
- Whether Forgent can maintain its record order levels amid potential economic volatility.
- Margin Expansion
- The pace at which Forgent can absorb accelerated hiring and startup costs to further expand margins.
- Capacity Utilization
- How effectively Forgent can ramp up its new manufacturing campuses to meet growing demand.
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