Vertiv's Earnings Confirm the Ongoing Growth of AI Infrastructure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy VRT?
Source: Marketbeat
Earnings Report Highlights: Vertiv reported strong demand for its cooling systems, with Q3 revenue at $2.88 billion, slightly below forecasts but 22.5% higher year-over-year. Earnings per share (EPS) of $1.36 exceeded expectations, leading to a 12% stock price increase in pre-market trading.
Market Trends and Stock Performance: The stock showed significant momentum, rising over 18% during the trading day, driven by positive labor data and a strong backlog of $15 billion, up 109% year-over-year. Investors are advised to monitor for potential pullbacks as buying opportunities.
AI and Data Center Demand: Vertiv's products are critical for meeting the continuous demand from artificial intelligence and data center infrastructure, with trailing twelve-month organic orders growing approximately 81% year-over-year, indicating robust market expansion.
Investment Strategy: Investors are encouraged to watch for a pullback in Vertiv's stock price between $195 and $205 as a potential buying point, while existing shareholders may consider trimming positions to capitalize on recent gains.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy VRT?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on VRT
Wall Street analysts forecast VRT stock price to fall
17 Analyst Rating
15 Buy
2 Hold
0 Sell
Strong Buy
Current: 236.510
Low
195.00
Averages
206.07
High
230.00
Current: 236.510
Low
195.00
Averages
206.07
High
230.00
About VRT
Vertiv Holdings Co. is a global provider of critical digital infrastructure. It provides mission-critical digital infrastructure technologies and lifecycle services primarily for data centers, communication networks, and commercial and industrial environments. Its offerings include alternate current (AC) and direct current (DC) power management products, switchgear and busbar products, thermal management products, integrated rack systems, modular solutions, management systems for monitoring and controlling digital infrastructure, and services. Its business segments include Americas, Asia Pacific, and Europe, Middle East & Africa. The Americas segment includes products which include AC and DC power management, thermal management, low/medium voltage switchgear, busbar, integrated modular solutions, racks, single phase UPS, rack power distribution, rack thermal systems, configurable integrated solutions, energy storage solutions, hardware, and software for managing I.T. equipment.
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.
Vertiv Holdings Shares Surge 20% Amid Strong Demand
- Stock Surge: Vertiv Holdings' shares surged 20% this week, hitting a 52-week high of $255.54 by Friday morning, more than doubling in value over the past year, reflecting strong market confidence in its performance.
- Earnings Surprise: The fourth-quarter results released on February 11 revealed a 23% year-over-year revenue increase and a 27% rise in operating profit, exceeding market expectations and highlighting robust demand in the data center sector.
- Order Growth: In Q4, Vertiv's organic orders skyrocketed by 252% year-over-year, with backlog exceeding $15 billion, indicating the company's dominant position in power management and thermal cooling systems is driving rapid business growth.
- Future Growth Outlook: Management anticipates organic sales growth of 27% to 29% by 2026, with net sales projected between $13.25 billion and $13.75 billion and adjusted earnings of $6 per share, all significantly above analyst estimates, demonstrating strong confidence in future performance.
See More
Ten Large-Cap Stocks Shine Last Week
- Magna International Surge: Magna International (NYSE:MGA) shares rose 26.81% this week after reporting better-than-expected fourth-quarter results and issuing FY26 adjusted EPS guidance above estimates, indicating strong profitability and market confidence.
- Generac Holdings Jump: Generac Holdings (NYSE:GNRC) saw a 22.25% increase this week, driven by robust fourth-quarter financial results, while Barclays analyst Christine Cho maintained an Equal-Weight rating and raised the price target from $186 to $213, reflecting optimism about future growth.
- BorgWarner's Strong Performance: BorgWarner (NYSE:BWA) shares gained 20.15% this week after reporting better-than-expected fourth-quarter results and announcing a master supply agreement with TurboCell, further solidifying its position in the automotive parts market.
- Smurfit WestRock's Recovery: Smurfit WestRock (NYSE:SW) experienced a 16.81% rise this week after releasing fourth-quarter results, with multiple analysts raising their price forecasts, demonstrating market confidence in its future performance.
See More
Vertiv Holdings Reports Strong Q4 Results and Positive Outlook
- Significant Performance Growth: Vertiv Holdings reported a 28% increase in sales for Q4 2025, reaching $10.2 billion, with operating profit rising 35% to $668 million, indicating strong performance in the data center and AI infrastructure sectors.
- Substantial Free Cash Flow Increase: The company saw a 66% rise in free cash flow to $1.8 billion in 2025, enhancing financial flexibility and providing ample funding for future investments.
- Strong Backlog Growth: Vertiv's backlog surged 109% from $7.8 billion at the end of 2024 to $15 billion by the end of 2025, reflecting ongoing demand for its products despite market concerns about the AI sector's growth prospects.
- Optimistic Future Growth Outlook: Management forecasts organic net sales growth of 27% to 29% for 2026, supported by a $15 billion backlog, indicating that investors still have opportunities to profit from this AI infrastructure company.
See More
Vertiv Reports Strong Q4 Results, Shares Surge
- Significant Performance Growth: Vertiv reported a 28% increase in sales for Q4 2025, reaching $10.2 billion, with operating profit rising 35% to $668 million, demonstrating strong performance in the rapidly growing AI data center market.
- Substantial Free Cash Flow Increase: The company’s free cash flow surged by 66% to $1.8 billion in 2025, providing ample funding support for future investments and expansion initiatives.
- Record Backlog: Vertiv's backlog skyrocketed by 109% from $7.8 billion at the end of 2024 to $15 billion by the end of 2025, indicating sustained strong demand for its infrastructure products and boosting investor confidence.
- Optimistic Future Outlook: Management forecasts organic net sales growth of 27% to 29% for 2026, and this positive outlook is bolstered by a robust backlog, highlighting the company's ongoing growth potential in the AI infrastructure sector.
See More
Vertiv Reports Strong Q4 Results, Shares Surge 22%
- Significant Performance Growth: Vertiv reported a 28% increase in sales for Q4 2025, reaching $10.2 billion, with operating profit rising 35% to $668 million, showcasing the company's strong position in the rapidly growing AI data center market.
- Substantial Free Cash Flow Increase: The free cash flow surged 66% to $1.8 billion in 2025, indicating effective capital management and investment returns, which enhances the company's capacity for future investments.
- Record Backlog: Vertiv's backlog skyrocketed 109% from $7.8 billion at the end of 2024 to $15 billion by the end of 2025, reflecting sustained strong demand for its infrastructure products and boosting investor confidence.
- Optimistic Outlook: Management forecasts organic net sales growth of 27% to 29% for 2026, supported by a robust backlog, indicating that investors still have opportunities to profit in the AI infrastructure sector.
See More
MarketBeat Weekly Recap – February 9 to February 13
Market Overview: Stocks are under pressure despite cooler-than-expected inflation readings, with investors focusing on valuations, particularly in the artificial intelligence sector, as earnings season reveals strong numbers from major players.
AI Impact on Jobs: Concerns are growing about the impact of AI on the job market, leading to a circular debate among investors regarding future interest rate cuts and stock valuations.
Earnings Season Insights: Major companies in the AI trade are posting strong earnings, which may influence stock prices positively, while the overall outlook for stocks remains bullish.
Investment Opportunities: Analysts highlight specific stocks, including those in the insurance and energy sectors, as potential buys, while cautioning investors about the risks associated with tech stocks and the broader market's direction.
See More
Vertiv Holdings Shares Surge 20% Amid Strong Demand
- Stock Surge: Vertiv Holdings' shares surged 20% this week, hitting a 52-week high of $255.54 by Friday morning, more than doubling in value over the past year, reflecting strong market confidence in its performance.
- Earnings Surprise: The fourth-quarter results released on February 11 revealed a 23% year-over-year revenue increase and a 27% rise in operating profit, exceeding market expectations and highlighting robust demand in the data center sector.
- Order Growth: In Q4, Vertiv's organic orders skyrocketed by 252% year-over-year, with backlog exceeding $15 billion, indicating the company's dominant position in power management and thermal cooling systems is driving rapid business growth.
- Future Growth Outlook: Management anticipates organic sales growth of 27% to 29% by 2026, with net sales projected between $13.25 billion and $13.75 billion and adjusted earnings of $6 per share, all significantly above analyst estimates, demonstrating strong confidence in future performance.
See More
Ten Large-Cap Stocks Shine Last Week
- Magna International Surge: Magna International (NYSE:MGA) shares rose 26.81% this week after reporting better-than-expected fourth-quarter results and issuing FY26 adjusted EPS guidance above estimates, indicating strong profitability and market confidence.
- Generac Holdings Jump: Generac Holdings (NYSE:GNRC) saw a 22.25% increase this week, driven by robust fourth-quarter financial results, while Barclays analyst Christine Cho maintained an Equal-Weight rating and raised the price target from $186 to $213, reflecting optimism about future growth.
- BorgWarner's Strong Performance: BorgWarner (NYSE:BWA) shares gained 20.15% this week after reporting better-than-expected fourth-quarter results and announcing a master supply agreement with TurboCell, further solidifying its position in the automotive parts market.
- Smurfit WestRock's Recovery: Smurfit WestRock (NYSE:SW) experienced a 16.81% rise this week after releasing fourth-quarter results, with multiple analysts raising their price forecasts, demonstrating market confidence in its future performance.
See More
Vertiv Holdings Reports Strong Q4 Results and Positive Outlook
- Significant Performance Growth: Vertiv Holdings reported a 28% increase in sales for Q4 2025, reaching $10.2 billion, with operating profit rising 35% to $668 million, indicating strong performance in the data center and AI infrastructure sectors.
- Substantial Free Cash Flow Increase: The company saw a 66% rise in free cash flow to $1.8 billion in 2025, enhancing financial flexibility and providing ample funding for future investments.
- Strong Backlog Growth: Vertiv's backlog surged 109% from $7.8 billion at the end of 2024 to $15 billion by the end of 2025, reflecting ongoing demand for its products despite market concerns about the AI sector's growth prospects.
- Optimistic Future Growth Outlook: Management forecasts organic net sales growth of 27% to 29% for 2026, supported by a $15 billion backlog, indicating that investors still have opportunities to profit from this AI infrastructure company.
See More
Vertiv Reports Strong Q4 Results, Shares Surge
- Significant Performance Growth: Vertiv reported a 28% increase in sales for Q4 2025, reaching $10.2 billion, with operating profit rising 35% to $668 million, demonstrating strong performance in the rapidly growing AI data center market.
- Substantial Free Cash Flow Increase: The company’s free cash flow surged by 66% to $1.8 billion in 2025, providing ample funding support for future investments and expansion initiatives.
- Record Backlog: Vertiv's backlog skyrocketed by 109% from $7.8 billion at the end of 2024 to $15 billion by the end of 2025, indicating sustained strong demand for its infrastructure products and boosting investor confidence.
- Optimistic Future Outlook: Management forecasts organic net sales growth of 27% to 29% for 2026, and this positive outlook is bolstered by a robust backlog, highlighting the company's ongoing growth potential in the AI infrastructure sector.
See More
Vertiv Reports Strong Q4 Results, Shares Surge 22%
- Significant Performance Growth: Vertiv reported a 28% increase in sales for Q4 2025, reaching $10.2 billion, with operating profit rising 35% to $668 million, showcasing the company's strong position in the rapidly growing AI data center market.
- Substantial Free Cash Flow Increase: The free cash flow surged 66% to $1.8 billion in 2025, indicating effective capital management and investment returns, which enhances the company's capacity for future investments.
- Record Backlog: Vertiv's backlog skyrocketed 109% from $7.8 billion at the end of 2024 to $15 billion by the end of 2025, reflecting sustained strong demand for its infrastructure products and boosting investor confidence.
- Optimistic Outlook: Management forecasts organic net sales growth of 27% to 29% for 2026, supported by a robust backlog, indicating that investors still have opportunities to profit in the AI infrastructure sector.
See More
MarketBeat Weekly Recap – February 9 to February 13
Market Overview: Stocks are under pressure despite cooler-than-expected inflation readings, with investors focusing on valuations, particularly in the artificial intelligence sector, as earnings season reveals strong numbers from major players.
AI Impact on Jobs: Concerns are growing about the impact of AI on the job market, leading to a circular debate among investors regarding future interest rate cuts and stock valuations.
Earnings Season Insights: Major companies in the AI trade are posting strong earnings, which may influence stock prices positively, while the overall outlook for stocks remains bullish.
Investment Opportunities: Analysts highlight specific stocks, including those in the insurance and energy sectors, as potential buys, while cautioning investors about the risks associated with tech stocks and the broader market's direction.
See More
