Forgent Power revenue doubles as data center demand drives record $2B backlog

Forgent Power Solutions (NYSE:FPS) reported explosive growth for its fiscal third quarter on Thursday, as the surge in AI data center construction and power grid modernization sent its bookings and backlog to all-time highs.

The company’s stock jumped more than 17% in pre-market trading following the report, which included a significant raise to its full-year financial outlook.

Forgent reported net revenue of $379 million for the quarter ended March 31, 2026, a 103% increase compared to the $186 million recorded in the prior-year period.

The company’s net income soared 190% to $24 million, while adjusted EBITDA reached $85 million.

Profitability was bolstered by a significant expansion in net income margins, which climbed 650 basis points sequentially to 6.5%.

The standout metric of the quarter was the company’s order flow.

Forgent secured record bookings of $867 million—a 308% year-over-year increase—resulting in a book-to-bill ratio of 2.3x.

This unprecedented demand has pushed the company’s total backlog to $1.98 billion, representing a 157% increase from a year ago.

Operational cash flow also saw a dramatic turnaround, reaching $29 million—an improvement of $37 million over the same period last year.

Reflecting the accelerating momentum, Forgent raised its full-year fiscal 2026 revenue guidance to a range of $1.35 billion to $1.39 billion, up from its previous forecast.

The midpoint of this new range represents 82% annual growth.

The company also increased its adjusted EBITDA outlook to between $310 million and $320 million, as it expects continued margin expansion through the fourth quarter.