This Energy Stock Proves That AI Data Center Demand Is Still Surging -- Barrons.com

By Mariapaula Gonzalez

Artificial intelligence may have triggered doomsday fears about humanity's future, but one rising energy player is showing that demand for data-center infrastructure isn't slowing down.

Shares of Forgent Power Solutions, an electrical-distribution equipment maker, jumped 11% to $31.81 on Tuesday after the company reported strong earnings before the market open.

Management attributed the better-than-expected results to the surging demand for AI data-center equipment. Forgent Power makes modular power systems, or flexible energy distribution hubs that manage and deliver uninterrupted power to servers, that are used specifically for data-center buildouts. Sales for its modular power systems grew 296% from a year ago in fiscal 2026.

Forgent's revenue soared 94% to $461.7 million in the fiscal fourth quarter ended in June, beating analysts' calls for $429.9 million. Adjusted earnings totaled 25 cents a share, just edging out estimates of 24 cents, according to FactSet.

CEO Gary Niederpruem said in a statement that Forgent's earnings surpassed the expectations set when the company first went public on Feb. 5. Customers are relying on to Forgent to execute "unprecedented build-outs" to meet the growing AI demand, he said.

A 375% surge in orders alongside a book-to-bill ratio of 3.3-meaning Forgent received $3.30 in new orders for every $1 of product it shipped-reflected massive buying activity and a strong appetite for Forgent's equipment in the fiscal fourth quarter. With an order backlog of $3 billion, customers have pre-ordered electrical equipment years in advance to lock in power delivery for data-center expansions.

To handle those order backlogs, Forgent said it will invest $25 million to expand production lines at its Tijuana campus, increasing total revenue capacity to $5.8 billion by late fiscal 2027.

Forgent said it expects adjusted earnings between $1.26 and $1.40 a share on revenue between $2.4 billion and $2.6 billion for fiscal 2027-"significantly higher than the company's IPO forecast.' Analysts project adjusted earnings of $1.13 a share on revenue of $2.09 billion.

Write to Mariapaula Gonzalez at mariapaula.gonzalez@barrons.com

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September 15, 2026 14:19 ET (18:19 GMT)