TLDR
FPS closed Wednesday at $24.57, then dipped in pre-market trading Thursday.
Q1 revenue rose 69% to $479 million, with adjusted EPS of $0.24.
Net income jumped 252% to $55 million.
Full-year EPS guidance of $1.30 to $1.44 landed close to analyst estimates.
Analysts rate the stock a Moderate Buy with a $53.21 average target.
Forgent Power Solutions (FPS) stock slipped in pre-market trading Thursday after the company beat Q1 targets and raised its outlook. It closed Wednesday at $24.57 after a 14% jump.
Early pre-market trading showed a drop of about 4%. The move came after the company reported first quarter fiscal 2027 results.
The quarter ended September 30. Adjusted earnings came in at $0.24 per share.
Forgent Power Solutions, $FPS, Q1-27.
Record revenue and a raised outlook as AI demand builds.
Revenue: $478.6M vs. $462.3M est. Adj. EPS: $0.24 vs. $0.20 est.
FY27 revenue guide raised to $2.45B–$2.65B
Backlog covers FY27; AI lab traction grows. pic.twitter.com/FdFxFvRHzS
— EarningsTime (@Earnings_Time) November 12, 2026
Revenue hit $479 million, up 69% from $283 million a year earlier. Forgent said that topped the high end of its own guidance.
A Big Quarter, a Tight Outlook
Net income reached $55 million, up 252% from last year. Adjusted EBITDA rose 61% to $105 million.
Net margin was 11.5%, and adjusted EBITDA margin was 21.9%. Cash flow from operations came in at $136 million, up $130 million year over year.
The company credited its production ramp for the results. Higher throughput and better cost absorption did the heavy lifting.
Capital spending totaled $32 million. That money went toward adding manufacturing capacity.
For fiscal 2027, Forgent now sees adjusted EPS of $1.30 to $1.44. The $1.37 midpoint sits just under the $1.39 consensus cited by Investing.com.
Revenue guidance rose to $2.45 billion to $2.65 billion. The $2.55 billion midpoint is just above the $2.54 billion consensus.
Not every source uses the same yardstick. MarketBeat lists the EPS consensus at $1.34, which would put the midpoint above it.
What the CEO and Analysts Say
CEO Gary Niederpruem said backlog fully covers the fiscal 2027 guidance. He added that strong demand and execution give the company more confidence.
MarketBeat data shows three Strong Buy ratings, twelve Buy ratings, two Holds and one Sell. The consensus is Moderate Buy, with an average price target of $53.21.
Recent rating moves were mixed. Weiss cut the stock to sell on October 2, while Zacks raised it to strong-buy on October 7.
Morgan Stanley set a $45 target on October 16. Roth Capital started coverage with a buy rating on November 6.
The stock has a market value of $7.49 billion and a P/E ratio of 63.11. Its 12-month range runs from $17.67 to $66.00, and its 50-day moving average sits at $31.98.
In the latest pre-market quote, FPS traded at $23.00, down $1.57 or 6.39%.
The post Forgent Power Solutions (FPS) Stock Falls 4% Pre-Market Despite Q1 Beat and Raise appeared first on Blockonomi.