Forgent Power Solutions revenue jumps 94% on AI data center demand

Forgent Power Solutions' fiscal 2026 fourth-quarter results show a company riding the AI infrastructure wave, but also one claiming to outpace it. Revenue nearly doubled to $462 million, while bookings jumped 375% to $1.5 billion, pushing backlog to $3 billion. CEO Gary Niederpruem framed the results not just as industry tailwind but as share gains, saying Forgent is "significantly outpacing the broader market."

The company is putting money behind that claim. A planned $35 million investment in its Tijuana, Mexico, facility is expected to lift revenue potential to about $5.8 billion, well above fiscal 2027 guidance of roughly $2.5 billion. That gap suggests Forgent sees room to keep growing capacity as data center construction continues.

Still, the story hinges on whether AI-driven demand sustains its current pace. Forgent's guidance implies another year of rapid growth, but execution on the Mexico expansion and the durability of customer build-outs will determine if the backlog converts as planned.