US IPO Market Set for Major Rebound in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 09 2026
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Should l Buy FPS?
Source: Newsfilter
- IPO Revenue Forecast: Goldman Sachs analysts predict that US IPO proceeds will reach a record $160 billion in 2026, quadrupling from 2025, reflecting strong demand for major companies, particularly with anticipated listings from SpaceX and OpenAI.
- Surge in IPO Numbers: The number of IPOs is expected to double to 120 in 2026, driven by economic growth, rising equity prices, and improved financial conditions, indicating strong market interest and confidence in new public offerings.
- Industry Dominance: Software and healthcare firms are set to dominate the IPO pipeline by volume, while late-stage tech and AI companies are expected to drive proceeds, showcasing ongoing investor focus and trust in technological innovation.
- Market Risk Warning: Despite the optimistic outlook, Goldman warns that ongoing volatility in software stocks and lack of corporate confidence could impact the IPO market, particularly as the software sector accounts for about a quarter of the IPO backlog, necessitating close monitoring of market dynamics.
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Analyst Views on FPS
Wall Street analysts forecast FPS stock price to rise
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Current: 35.900
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Current: 35.900
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About FPS
Forgent Power Solutions, Inc. is a holding company. The Company will operate through Forgent Power Solutions LLC and its subsidiaries. It offers powertrain solutions, standard and custom products, and services. Its powertrain solutions include in-house engineering to manufacture critical components and deliver prefabricated solutions. Its standard and custom products include Medium Voltage/Low Voltage (MV/LV) transformers, LV/MV Switchboards & Switchgear, Power Skids & E-Houses, and Tap Off Boxes. Its services include comprehensive commissioning and repair services across transformers, switchgear, integrated power skids, and controls. Its LV/MV Switchboards & Switchgear products include Switchboards, Switchgear, Panelboards, Automatic Transfer Switches, Generator Connection Cabinets, Power Distribution Units, and Remote Power Panels. Its LV/MV transformers include Dry Type Transformers and Liquid Filled Transformers.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Significant Revenue Growth: Forgent Power Solutions reported second-quarter revenue of $296.4 million, a 68.4% increase from $175.34 million last year, indicating strong market demand in the electrical distribution equipment sector.
- Net Income Decline: Despite the substantial revenue increase, net income fell from $4.59 million to $0.25 million, primarily due to rising hiring and expansion costs, which may impact the company's future profitability.
- Adjusted Net Income Increase: Adjusted net income rose from $21.41 million to $35.52 million, reflecting the company's success in managing operational costs despite the overall decline in net income.
- Optimistic Future Outlook: The company expects fiscal year 2026 revenue to range between $1.28 billion and $1.33 billion, with adjusted EBITDA projected between $300 million and $310 million, demonstrating confidence in future growth.
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- Significant Revenue Growth: Forgent Power Solutions reported Q2 revenue of $296.4 million, reflecting a 69% year-over-year increase, exceeding market expectations by $9.84 million, which underscores the company's robust sales capabilities in a rapidly growing market.
- Surge in Bookings: The company achieved bookings of $762 million in Q2, representing a staggering 268% year-over-year increase, indicating a sustained rise in market demand for its products and further solidifying its market position.
- Strong Backlog: Forgent's backlog reached $1.5 billion by the end of Q2, marking a 100% increase year-over-year and a 45% increase quarter-over-quarter, providing strong support for future revenue growth.
- Optimistic Financial Outlook: The company projects fiscal year 2026 revenues between $1.275 billion and $1.325 billion, reflecting a 73% year-over-year growth, while adjusted EBITDA is expected to grow by 80%, demonstrating confidence in future performance.
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- Significant Revenue Growth: Forgent reported revenues of $296 million for Q2 2026, marking a 69% year-over-year increase, indicating strong market demand among data center and grid customers and reflecting its competitive position in the rapidly growing electrical distribution equipment market.
- Accelerated Order Activity: The company experienced a surge in bookings to $762 million, a 268% year-over-year increase, resulting in a book-to-bill ratio of 2.6x, up from 1.6x in the first quarter, demonstrating ongoing market share gains.
- Adjusted Net Income Increase: Forgent's adjusted net income reached $36 million, a 66% increase year-over-year, primarily driven by higher gross profit despite rising selling, general, and administrative expenses, laying a solid foundation for future profitability.
- Optimistic Financial Outlook: The company expects full-year revenues for fiscal 2026 to range between $1.275 billion and $1.325 billion, reflecting a 73% growth rate, showcasing confidence in future market demand and a commitment to ongoing investments.
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- Surge in AI Storage Chip Demand: Micron Technology, as a provider of memory and storage chips for training AI models, is expected to experience significant growth in 2025, driving overall company performance.
- Market Share Expansion: With the proliferation of AI technology, Micron's market share in the storage chip sector continues to grow, which is expected to further solidify its leadership position in the industry.
- Innovation-Driven Growth: The company is continuously investing in R&D to enhance the performance and efficiency of its storage chips, ensuring its products meet the increasing demands of AI applications, thereby strengthening its competitive edge.
- Long-Term Strategic Planning: Micron's growth strategy focuses not only on short-term gains but also on future technology trends, aiming to secure a favorable position in the rapidly evolving AI market.
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- Stock Market Decline: U.S. stock indexes experienced a drop on Thursday, with the overall market declining by 1.78%.
- Index Performance: The S&P 500 fell by 1.56%, while the Dow Jones Industrial Average decreased by 1.52%.
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Stock Performance: Forgent Power Solutions shares rose nearly 6% on Monday, reflecting positive market sentiment.
Analyst Coverage: Four Wall Street firms initiated coverage with bullish ratings, contributing to the stock's upward trend.
IPO Gains: The stock has increased over 30% since its initial public offering price of $27.
Current Trading Price: Forgent Power Solutions is currently trading around $35.
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