Forgent Power Solutions, Inc.

U.S. equities ground higher off six-week lows on Wednesday as a sharp reversal in crude oil handed stocks a reprieve just hours before the Federal Reserve is expected to raise interest rates for the first time since 2023. The S&P 500 added 0.4% to 7,615.70, the Dow Jones Industrial Average was effectively flat at 52,113, and the Nasdaq 100 outperformed with a 0.9% gain to 29,198. West Texas Intermediate crude slid 3.6% to $102.02 a barrel after U.S. Energy Secretary Chris Wright told CNBC that the outage on Saudi Arabia's damaged East-West crude pipeline would be a brief and temporary interruption measured in days, and Riyadh moved to route additional barrels through Oman. Markets price in roughly a 93% chance the central bank will lift the target range by 25 basis points to 3.75%-4.00% this afternoon, with another move expected by December, after August retail sales jumped 1.2% month-over-month against forecasts of 0.8%. On the earnings front, Forgent Power Solutions rallied 11.6% after fourth-quarter revenue rose 94% year-over-year to $462 million, while J.B. Hunt Transport Services collapsed 12.5% after guiding third-quarter earnings to fall 5% to 10% from the second quarter on a $10 million fuel headwind and $25 million of added driver-related costs.

Forgent Power Solutions Inc stock is up 12.4% at $35.26 after the company reported record fiscal fourth-quarter results, including an earnings beat. Revenue surged 94% year over year to $462 million, while bookings jumped 375% to a record $1.5 billion and backlog rose 256% to an all-time high of $3 billion. FPS has seen roughly 48,000 options contracts exchanged so far, or 4.2 times the usual intraday volume, with calls accounting for 41,000 of the total. Teva Pharmaceutical Industries Ltd stock is down 1.1% at $38.84 as the company officially transitions its primary shares to trade directly on the New York Stock Exchange, replacing its previous American depositary shares program, with options traders targeting TEVA at 4.4 times the usual intraday volume. Aflac Inc stock is up 0.4% at $117.99 despite Japan Post Holdings reportedly selling roughly $158 million worth of Aflac shares, with AFL seeing roughly 42,000 contracts exchanged, or 19.8 times the usual intraday amount.

Forgent Power Solutions shares jumped 9.5% after the company reported fourth-quarter fiscal 2026 adjusted earnings of 25 cents per share, beating the Zacks Consensus Estimate of 23 cents. Skyworks Solutions shares surged 13.6% as CEO Philip Brace expressed confidence that the $22 billion Qorvo merger could close by late September or early October, while Qorvo shares advanced 9.3%. Axon Enterprise shares slipped 9.8% after announcing plans for a $1 billion debt issuance, adding to investor concerns over borrowing costs. Valero Energy shares rose 3.7% as surging crude prices boosted energy stocks amid escalating Middle East supply concerns.

Forgent Power Solutions guided to fiscal 2027 revenue of $2.4 billion to $2.6 billion and adjusted EBITDA of $575 million to $625 million, alongside adjusted EPS of $1.26 to $1.40 and an adjusted EBITDA margin of approximately 24%, up from 22.7% in fiscal 2026. The guidance accompanied record fiscal fourth-quarter results, with revenues up 94% to $462 million and adjusted EBITDA margin expanding 200 basis points sequentially to 24.4%. For the full fiscal year, revenues rose 89% to $1.42 billion and adjusted EBITDA rose 91% to $323 million, while operating cash flow increased roughly 2.5 times to $109 million from $45 million, with management expecting more than $300 million in fiscal 2027. Chief Executive Gary Niederpruem said the company booked more than $1.5 billion of orders in the quarter alone, leaving backlog at $3 billion, and announced an incremental investment to build a dedicated 385,000 square foot Powertrain Solutions facility on its Tijuana, Mexico campus, expected online in the fourth quarter of fiscal 2027. For the first quarter of fiscal 2027, Forgent guided to revenues of $445 million to $465 million and adjusted EBITDA of $90 million to $100 million, including approximately $10 million of one-time costs, and said it will stop reporting orders and backlog quarterly while providing rolling quarterly revenue and adjusted EBITDA guidance.

A bullish thesis on Forgent Power Solutions, Inc. was posted on r/GrowthStockInvesting by Trail_Chris, highlighting the company's accelerating revenue growth and strong AI data center exposure. The electrical distribution equipment manufacturer, founded in 2023 and listed in February 2026, has posted revenue growth accelerating from 92% to 116% while remaining profitable, with recent results including two revenue beats and fiscal year guidance raised to $1.35–$1.39 billion, representing 82% year-over-year growth. Its Powertrain Solutions segment is the fastest growing, up 248% year-over-year, driving a 109% rise in customer spend and multiple orders exceeding $100 million. The thesis notes that backlog and bookings are expanding, with 55–60% of orders shipping into fiscal 2027, and margins are improving with approximately 22% EBITDA margins and $205 million in capex nearing completion. Valuation is rich at 44 times forward P/E, and recent insider selling of around 43 million shares by Neos Partners has weighed on sentiment, but the outlook remains bullish with pullbacks seen as attractive entry opportunities.

Forgent Power Solutions reported fiscal third-quarter 2026 revenue of $379 million, a 103% year-over-year increase, and raised its full-year guidance. The company secured $867 million in bookings during the quarter, pushing its total backlog to $1.98 billion. Net income reached $24 million, while Adjusted EBITDA rose to $85 million, reflecting a 200-basis-point sequential margin expansion. Management now projects full-year revenue between $1.35 billion and $1.39 billion and Adjusted EBITDA of $310 million to $320 million, citing capacity expansion on track to support up to $5 billion in annual revenue by year-end.