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Forgent Power Solutions’ fourth-quarter fiscal 2026 results are expected to benefit from continued strong spending on data center and grid infrastructure. Data center customers are expanding projects and securing power equipment earlier, while utilities continue to invest in grid infrastructure and renewable energy projects. This is increasing demand for Forgent’s medium- and low-voltage switchgear, transformers and other power distribution equipment. In the fiscal third quarter, data center and grid markets led the company’s growth, with revenues from both markets more than doubling year over year.
The company’s Powertrain Solutions business is expected to have provided another source of growth in the fourth quarter of fiscal 2026. FPS combines multiple products, such as switchgear, transformers and switchboards, into one integrated solution. This allows the company to supply a larger portion of a customer’s project instead of selling a single product. Powertrain Solutions revenues increased 248% year over year to nearly $100 million in the fiscal third quarter, and the company won a more than $100 million order from a new data center customer.
Strong bookings and backlog are expected to have supported the company’s prospects in the fiscal fourth quarter. Forgent Power Solutions’ bookings in the fiscal third quarter increased 308% year over year to $867 million, while backlog reached nearly $2 billion, up 157% year over year. Management said the backlog provides visibility into future revenues, with part of the March-end backlog scheduled to ship in the fiscal fourth quarter and a larger portion planned for fiscal 2027. This is expected to have given the company a strong order base in the fiscal fourth quarter.
However, new facility ramp-up costs might have limited margin improvement in the fiscal fourth quarter. Forgent incurred under-absorbed fixed costs, start-up costs and labor costs in the third quarter because its new facilities were not yet operating at full utilization. Although management expects these costs to decline as production increases, they might have continued to weigh on margin expansion in the fourth quarter of fiscal 2026.
What Our Model Says About FPS
Our proven model does not conclusively predict an earnings beat for FPS this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
FPS has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Thor Industries is set to report fourth-quarter fiscal 2026 results on Sept. 22. The Zacks Consensus Estimate for Thor Industries’s fourth-quarter fiscal 2026 earnings is pegged at 95 cents per share, down by a penny over the past 30 days, indicating a decline of 58.9% from the year-ago quarter’s reported figure.
Darden Restaurants (DRI - Free Report) has an Earnings ESP of +0.12% and a Zacks Rank #3 at present.
Darden Restaurants is slated to report first-quarter fiscal 2027 results on Sept. 24. The Zacks Consensus Estimate for Darden Restaurants’ first-quarter fiscal 2027 earnings is pegged at $2.06 per share, up by a penny over the past seven days, indicating a rise of 4.6% from the year-ago quarter’s reported figure.
Accenture (ACN - Free Report) has an Earnings ESP of +0.33% and carries a Zacks Rank #3 at present.
Accenture is set to report fourth-quarter fiscal 2026 results on Oct. 1. The Zacks Consensus Estimate for Accenture’s fourth-quarter earnings is pegged at $3.19 per share, unchanged over the past 30 days, indicating a rise of 5.3% from the year-ago quarter’s reported figure.
View the Zacks #1 Rank List
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FPS Set to Report Q4 Earnings: What's in Store for the Stock?
Key Takeaways
Forgent Power Solutions, Inc. (FPS - Free Report) is slated to release fourth-quarter fiscal 2026 results on Sept. 15.
The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $425.6 million.
The Zacks Consensus Estimate for fiscal fourth-quarter earnings has remained unchanged at 23 cents over the past 30 days.
Let’s see how things are shaping up for this announcement.
Forgent Power Solutions, Inc. Price and EPS Surprise
Forgent Power Solutions, Inc. price-eps-surprise | Forgent Power Solutions, Inc. Quote
Factors Likely to Influence FPS’ Q4 Results
Forgent Power Solutions’ fourth-quarter fiscal 2026 results are expected to benefit from continued strong spending on data center and grid infrastructure. Data center customers are expanding projects and securing power equipment earlier, while utilities continue to invest in grid infrastructure and renewable energy projects. This is increasing demand for Forgent’s medium- and low-voltage switchgear, transformers and other power distribution equipment. In the fiscal third quarter, data center and grid markets led the company’s growth, with revenues from both markets more than doubling year over year.
The company’s Powertrain Solutions business is expected to have provided another source of growth in the fourth quarter of fiscal 2026. FPS combines multiple products, such as switchgear, transformers and switchboards, into one integrated solution. This allows the company to supply a larger portion of a customer’s project instead of selling a single product. Powertrain Solutions revenues increased 248% year over year to nearly $100 million in the fiscal third quarter, and the company won a more than $100 million order from a new data center customer.
Strong bookings and backlog are expected to have supported the company’s prospects in the fiscal fourth quarter. Forgent Power Solutions’ bookings in the fiscal third quarter increased 308% year over year to $867 million, while backlog reached nearly $2 billion, up 157% year over year. Management said the backlog provides visibility into future revenues, with part of the March-end backlog scheduled to ship in the fiscal fourth quarter and a larger portion planned for fiscal 2027. This is expected to have given the company a strong order base in the fiscal fourth quarter.
However, new facility ramp-up costs might have limited margin improvement in the fiscal fourth quarter. Forgent incurred under-absorbed fixed costs, start-up costs and labor costs in the third quarter because its new facilities were not yet operating at full utilization. Although management expects these costs to decline as production increases, they might have continued to weigh on margin expansion in the fourth quarter of fiscal 2026.
What Our Model Says About FPS
Our proven model does not conclusively predict an earnings beat for FPS this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
FPS has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Thor Industries (THO - Free Report) has an Earnings ESP of +5.94% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Thor Industries is set to report fourth-quarter fiscal 2026 results on Sept. 22. The Zacks Consensus Estimate for Thor Industries’s fourth-quarter fiscal 2026 earnings is pegged at 95 cents per share, down by a penny over the past 30 days, indicating a decline of 58.9% from the year-ago quarter’s reported figure.
Darden Restaurants (DRI - Free Report) has an Earnings ESP of +0.12% and a Zacks Rank #3 at present.
Darden Restaurants is slated to report first-quarter fiscal 2027 results on Sept. 24. The Zacks Consensus Estimate for Darden Restaurants’ first-quarter fiscal 2027 earnings is pegged at $2.06 per share, up by a penny over the past seven days, indicating a rise of 4.6% from the year-ago quarter’s reported figure.
Accenture (ACN - Free Report) has an Earnings ESP of +0.33% and carries a Zacks Rank #3 at present.
Accenture is set to report fourth-quarter fiscal 2026 results on Oct. 1. The Zacks Consensus Estimate for Accenture’s fourth-quarter earnings is pegged at $3.19 per share, unchanged over the past 30 days, indicating a rise of 5.3% from the year-ago quarter’s reported figure.