Is FPS a good stock to buy? We came across a bullish thesis on Forgent Power Solutions, Inc. on r/GrowthStockInvesting by Trail_Chris. In this article, we will summarize the bulls’ thesis on FPS. Forgent Power Solutions, Inc.’s share was trading at $61.84 as of June 22nd. FPS’s trailing and forward P/E were 3.27k and 55.25 respectively according to Yahoo Finance.
Forgent Power Solutions, Inc. is a high-growth electrical distribution equipment manufacturer serving data centers, power grids, and energy-intensive industrial facilities with exposure to AI infrastructure demand. The company, founded in 2023 and listed in February 2026, has shown accelerating growth from 92% to 116% while remaining profitable.
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Recent results include two revenue beats, latest +10.8%, FY guidance raised to $1.35–$1.39B (82% YoY), and next quarter $392–$432M implying ~73% YoY with upside near 95%. Backlog and bookings are expanding, with 55–60% of orders shipping into fiscal 2027. Powertrain Solutions is fastest growing, up 248% YoY, driving 109% rise in customer spend and multiple >$100M NeoCloud and repeat orders. Margins improving with 230bps SG&A leverage, ~22% EBITDA margins, and $205M capex nearing completion supporting FCF inflection. Industry grows ~20% while company grows 3–5x faster due to customization and speed.
Valuation is rich at 44x forward P/E and premium EV/Sales; PT $56 vs $47 implies ~19% upside; recent Neos Partners selling (~43M shares) weighs on sentiment. Customer base includes large AI and enterprise infrastructure clients, with growing repeat orders across multi-campus deployments and increasing average contract size. Balance sheet shows $613M debt and $94M cash supporting aggressive expansion but adding leverage risk.
Strong visibility from backlog conversion into FY27 revenue provides medium-term growth durability and supports sustained double-digit upside if execution continues. Overall, the outlook is bullish, with strong AI data center exposure and high growth, though valuation remains expensive; pullbacks may offer attractive entry opportunities. Pullback-driven entries could materially enhance the long-term risk-reward profile, supporting the overall outlook.
Previously, we covered a bullish thesis on Vertiv Holdings Co (VRT) by OppCost in May 2025, which highlighted strong AI-driven data center infrastructure tailwinds, margin expansion, and liquid cooling leadership. VRT’s stock price has appreciated by approximately 239.68% since our coverage. Trail_Chris shares a similar view but emphasizes high-growth electrical power equipment exposure, rapid backlog-driven growth, and a valuation-rich but high-upside setup in Forgent Power Solutions.
Forgent Power Solutions, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 76 hedge fund portfolios held FPS at the end of the first quarter which was 0 in the previous quarter. While we acknowledge the risk and potential of FPS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FPS and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
