Why Forgent Power Stock Popped Today

FPS surged 9.50% following its Q4 fiscal 2026 earnings report, which showed revenue climbing 94% year-over-year to $462 million. The company attributed the growth to AI-driven demand for its power solutions.

Management projected fiscal 2027 revenue of $2.5 billion, representing 76% growth from fiscal 2026 levels. To meet continuing demand, FPS announced plans for a $35 million capacity expansion at its Mexico operations.

The stock's sharp single-day move reflects investor confidence in the company's ability to capitalize on AI infrastructure buildout, a sector where power management and cooling solutions have become critical bottlenecks. The Mexico expansion signals FPS expects elevated demand to persist beyond the current fiscal year.

The guidance implies fiscal 2026 full-year revenue of approximately $1.4 billion, making the projected $2.5 billion fiscal 2027 target one of the most aggressive growth outlooks among mid-cap industrial suppliers serving the AI space.