Why Data Infrastructure Company Vertiv's Shares Are Rocketing Today
- Company Performance: Vertiv Holdings Co reported better-than-expected first-quarter FY24 results with an 8% increase in net sales and a 60% rise in organic orders.
- Financials: Adjusted operating profit rose 42% year-over-year to $249 million, with adjusted EPS at $0.43, surpassing expectations.
- Outlook: The company raised its 2024 revenue guidance to $7.54 billion-$7.69 billion and adjusted EPS to $2.29-$2.35.
- AI Market Impact: CEO Giordano Albertazzi noted increasing AI deployments driving market demand, with longer lead times indicating AI scaling for the future.
- Stock Performance: Vertiv's shares surged by 16.3% to $92.04 following the positive quarterly results and raised guidance.
Trade with 70% Backtested Accuracy
Analyst Views on VRT
About VRT
About the author

- 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.
- 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.
- 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.
- 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.
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.

Source of Reports: The reports are excerpts from various investment and research firms, recently issued and edited by Barron’s.
Analysts' Perspectives: They represent a sampling of analysts' thoughts and should not be interpreted as Barron’s official views or recommendations.
Investment Services Disclosure: Some firms that issued the reports may have provided or intend to provide investment-banking or other services to the companies analyzed.
Caution on Interpretation: Readers are advised to consider the reports as insights rather than definitive investment advice.









