Al Bentley
4 min read
Forgent Power Solutions just watched its share price slide almost 10% to US$22.15 after the latest Q1 2027 earnings release, even though the report showcased a sharp earnings recovery and expanding profitability. Over the last twelve months, net income from ongoing operations climbed while net profit margin reached 5.1%. Short term traders focused on the red on the screen. Long term holders are more likely to be weighing that margin trajectory, the high 83.4x P/E, and the debt coverage strain that now sit at the center of the Forgent Power story.
Impressed by Forgent Power Solutions’ margin recovery but uneasy about paying 83.4x P/E for a business still working through debt coverage strain? You can size it up against peers with stronger balance sheets and profitability profiles in our list of solid balance sheet and fundamentals stocks (23 results).
Q1 2027 Earnings Summary
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Total Revenue (TTM to Q1 2027 vs. TTM to Q1 2026): US$4,302.2m vs. US$2,835.0m (very large increase in trailing sales)
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Net Income from Continuing Operations (TTM to Q1 2027 vs. TTM to Q1 2026): US$181.8m vs. US$83.0m (up about 2x on a trailing basis)
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Basic EPS (TTM to Q4 2026 vs. TTM to Q4 2025): US$0.39 vs. US$0.09 (roughly 4x higher trailing earnings per share)
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Net Profit Margin (TTM to Q1 2027 vs. TTM to Q1 2026): 5.1% vs. 2.0% (trailing profitability more than doubled)
Tired of squinting at dense tables and spreadsheet rows? Get a clear visual snapshot of Forgent Power Solutions, including how the valuation stacks up, in the company report for Forgent Power Solutions.
Forgent Power’s results backing the growth story
For a bullish angle, Forgent Power Solutions just put up numbers that echo the infrastructure narrative. Revenue of US$479m grew 69% YoY and adjusted EPS advanced 83% YoY, which lines up with a business scaling into data center, industrial and grid demand. Orders roughly doubled versus Q1 FY26 and services revenue also climbed, pointing to both new projects and a thicker aftermarket. Raised full year guidance, with backlog said to fully cover that range, supports the idea that this is not a one quarter blip.
Forgent Power’s risks that still warrant respect
The bear case does not disappear. The share price fell almost 10% after the release and is down around 39% over 30 days, so investors are still questioning durability and balance sheet strain. Grid orders softened as policy shifts and sourcing rules hit timing, and management flagged ongoing execution risk as factories ramp and margin programs roll through. CFO turnover in October, even with an internal successor, keeps governance and financial discipline in focus. Strong backlog helps, but project delays or cost missteps could quickly pressure earnings quality.
