FPS: Upside 3Q26 Results, Bookings Strength Continues

Research evidence excerpt

FPS: Upside 3Q26 Results, Bookings Strength Continues

Communications Infrastructure: Data Centers

Forgent Power Solutions

TD SECURITIES (USA) LLC EARNINGS UPDATE

May 14, 2026

Price: $50.19 (05/14/2026) FPS: Upside 3Q26 Results, Bookings Strength

Price Target: $63.00 (Prior $45.00) Continues

BUY (1)

ESG SCORE: N/A

Michael Elias THE TD COWEN INSIGHT

646 562 1358

FPS reported upside FY3Q26 results, record FY3Q26 orders, and provided upside FY26

michael.elias@tdsecurities.com

guidance. Given our channel checks indicated a record ~9.4GW of data center leasing in 1Q26

Jerome Darling (a ~5x increase in Y/Y DC leasing) with a forward pipeline of ~11.0GW, we see continued upside

646 562 1312 for FPS given their ability to address record demand with capacity expansion at industry-

jerome.darling@tdsecurities.com

leading margins.

Haydn Potgieter

212 827 7897 Net / Net

haydn.potgieter@tdsecurities.com

Forgent reported upside FY3Q26 results, record FY3Q26 orders, and provided upside FY26

Gregory Williams, CFA guidance. FY3Q26 results underscored our thesis at initiation, with the company continuing

646 562 1367

to report upside orders amid accelerating data center demand observed notably with an

gregory.williams@tdsecurities.com

inflection in leasing activity through 3Q25 to ~7.4GW. Our most recent checks indicate

Key Data that demand acceleration continues with ~9.4GW of leasing signed in 1Q26 and an active

Symbol NYSE: FPS leasing pipeline standing at ~11.0GW. Given the typical lag between leasing and order

52-Week Range: $50.19-$27.97 generation, we expected Forgent's order strength to appear in FY4Q26 onward. Early strength

Market Cap: $12.3B nonetheless continues to exemplify the company's unique ability to capture share with lead