Track market-moving stories before they get noisy

Vertiv and Schneider Electric both posted blockbuster AI-driven growth, but their earnings tell two very different stories about where the real money gets made in the data center cooling race.

Vertiv (NYSE:VRT | VRT Price Prediction) and Schneider Electric (OTC:SBGSF) just delivered earnings that frame the AI infrastructure boom from opposite ends of the barbell. Vertiv is a pure play on data center power and cooling. Schneider is a diversified global electrification giant that owns APC and, since Q2 2025, Motivair for liquid cooling. Both grew fast. Only one is levered entirely to the hyperscale wave.

AI Racks Carry Vertiv. Grid and Automation Carry Schneider. Vertiv posted Q2 2026 revenue of $3.274 billion, up 24.1%, with 18% organic growth and adjusted EPS of $1.52. Americas surged 29.2% on hyperscale AI, while EMEA barely moved. CEO Giordano Albertazzi told investors “demand for AI and general compute continues to intensify” and that deployments are getting “more complex and more infrastructure-intensive.” Free cash flow jumped to $925.3 million, a signal that milestone payments on giant projects are landing early.

Schneider Electric reported record H1 2026 revenue of €21.2 billion, up 14% organic, with Q2 alone at €11.5 billion (+17% organic). Energy Management, which houses data center power, grew 18% organic. CEO Olivier Blum raised full-year adjusted EBITA growth guidance to 14 to 19%. Motivair is now scaling as its liquid cooling arm, aimed squarely at GPU-dense workloads. The rest of the portfolio (industrial automation, buildings, grid) grew far slower.

Pure-Play Cooling Bet vs. Diversified Electrification Machine Lens Vertiv Schneider Electric Core Bet Power, thermal, liquid cooling for AI racks Global electrification plus data centers Signature Tech PurgeRite Near Zero, 800V DC roadmap APC UPS, Motivair CDUs and cold plates Growth Engine Americas hyperscale Energy Management segment Key Vulnerability AI capex concentration, EMEA softness Slower automation, FX drag Vertiv is engineering ahead of the GPU curve. Management confirmed 800-volt DC architecture at rack and pod level is under customer validation in 2026, with deployment in 2027. Schneider is broader and steadier. Motivair gives it credible cold-plate capability, but its identity is still the global grid and factory floor, not the AI thermal loop.

Backlog Conversion Becomes the Next Proving Ground Vertiv raised FY26 guidance to $13.80 billion to $14.20 billion in revenue and adjusted EPS of $6.65 to $6.75, implying 58 to 61% EPS growth. Q3 organic growth is guided to 34 to 36%. That is a lot to execute against supply chain congestion Chamberlin admitted may linger. I will keep an eye on EMEA, which management insists returns to growth in the second half. Schneider’s watch item is different: whether industrial automation and buildings ever catch up to the data center business, or drag on the multiple.

Why I Own the Story Through Vertiv, With Schneider as Ballast If you want unfiltered exposure to AI cooling economics, Vertiv is the cleaner vehicle. The stock is up 66.01% year to date and 114.28% over one year, so I know I am paying for velocity. That said, a market cap near $103.5 billion against a raised guide still leaves room if 2027 orders match the tone of this call. Schneider, up 23.14% year to date, suits an investor who wants AI exposure without single-theme risk, plus a euro dividend and an industrial base that will not vanish if hyperscale capex slows. For me, Vertiv deserves the money right now. Schneider deserves the watchlist for the day AI cooling growth normalizes. If you want a wider map of the picks-and-shovels names powering this buildout beyond the chipmakers, we put seven of them in a free report on the AI infrastructure trade.

Contact [email protected] for any questions or corrections.

Vertiv has quietly shed nearly a third of its value from its peak even as earnings beats pile up and estimates keep climbing higher. One analyst has a target so far above current prices it sounds almost absurd, but the…

Vertiv (NYSE:VRT | VRT Price Prediction) closed the most recent session at $256.70, while the average Wall Street price target sits at $338.15. That leaves a consensus gap of roughly 32% between where the stock trades and where analysts think it belongs.

Vertiv sells the power and thermal plumbing that keeps AI data centers alive: UPS systems, switchgear, chillers, coolant distribution units, and liquid-cooling loops that sit between hyperscalers and the GPUs they are racing to deploy (we profiled seven of these infrastructure suppliers, from power to cooling, in a free report here: 7 Stocks Powering the AI Boom). That positioning turned VRT into one of the market’s cleanest AI infrastructure names and made it a favorite of momentum funds after it joined the S&P 500 in March 2026.

The gap matters because the stock has quietly come undone from its highs even as the operating story keeps getting better. That disconnect has Wall Street increasingly vocal, with one shop calling for a rally of roughly 100% from here.

A 32% Drawdown Off the Highs Nobody Is Talking About Vertiv has shed about 32% from its 52-week high of $379.86, a drawdown large enough to qualify as a bear market in a single name. Shares are down 2.41% over the past month and 2.7% over the past week, extending a slow bleed that began after the April peak near $319.

The catalyst had nothing to do with earnings quality. Vertiv’s Q2 2026 report was the fifth straight beat, with $1.52 in adjusted EPS, $3.27 billion in revenue up 24.12% year over year, and adjusted operating margin of 22.6%, up 410 basis points. Management raised full-year EPS guidance to $6.65 to $6.75. Yet shares opened the next session near $232 after filing at $270.

The market seized on management’s comments about “minor timing shifts” in Q2 revenue tied to multi-phase project execution and supply-chain congestion. Investors read that as a crack in the AI capex story. Layer in tariff overhangs, an EMEA segment that grew only 1.7%, and profit-taking after a scorching run, and the selloff snowballed.

Why Loop Capital Sees a 100% Rally From Here Analysts remain firmly constructive. Of 28 firms covering VRT, 3 rate it Strong Buy, 21 Buy, 4 Hold, and none Sell. The consensus EPS estimate for 2026 has climbed to $6.71 from $6.48 just 30 days ago, and the 2027 number has moved to $9.10. Recent revisions are running heavily to the upside, with 21 upward revisions versus only three cuts over the past month for 2026.

The loudest bull is Loop Capital Markets, which carries the highest active published Street target of $500.00. From here, that implies close to a 100% move. Loop’s thesis models aggressive long-term revenue and margin expansion driven by Vertiv’s dominant market share in liquid cooling (CDUs, chillers) and power management infrastructure for next-generation AI data center architectures. In plain English: Loop believes VRT is the toll booth for the 800-volt DC power and closed-loop liquid cooling transition already being validated with NVIDIA GB300 and Vera Rubin platforms.

Management’s own commentary supports the bull case. CEO Gio Albertazzi told investors “the momentum is strong. It’s broad-based, and it’s accelerating,” pointing to a Q2 backlog and pipeline that continue to expand across hyperscale, colocation, and neocloud customers. A $1.45 billion deal to acquire a microgrid firm, announced this week, deepens VRT’s grid-tie capability just as AI power constraints tighten.

The bull timeline is concrete. Q3 organic growth is guided to 34% to 36%, which would give the market a clean data point on whether the H2 backlog conversion story is real. Loop’s $500 needs that ramp plus continued mix shift toward higher-content liquid-cooling deployments.

Vertiv Fell Alone While Its Power Peers Held Firmer The AI power complex sold off unevenly. Vertiv is the outlier, having given back more than any close peer despite posting the cleanest fundamentals.

Eaton (NYSE:ETN) trades at $390.85 against a $475.57 average target, implying about 22% upside. Coverage skews bullish with 22 Buys, 4 Holds, and 1 Strong Sell. ETN is down 10.59% in the past month but still 23.73% YTD; Wall Street’s implied upside here is meaningfully smaller than VRT’s.

Generac (NYSE:GNRC) sits at $180.76 versus a $283.88 target, or roughly 57% upside, with 14 Buys and 7 Holds. GNRC has fallen 12.52% in the past week on data-center backlog concerns, giving it the widest peer-group gap outside of Loop’s outlier VRT call.

Super Micro Computer (NASDAQ:SMCI) trades near $37.00 against a $42.38 target, implying just 14.5% upside. The rating deck reflects lingering doubt: 5 Buys, 11 Holds, 3 Sells. SMCI’s setup is the weakest of the group on both upside and analyst posture.

Across the primary and its peers, GNRC carries the largest consensus upside, but the standout single-analyst call sits with Vertiv thanks to Loop’s $500. On a rating-quality basis, VRT’s Buy-heavy book is the cleanest in the group.

How the VRT Numbers Actually Stack Up Vertiv trades at $256.70 with a $338.15 consensus target across 28 analysts, implying about 32% upside to the group average and closer to 95% to Loop’s Street-high $500. Targets are one data point among many.

Performance tells the dislocation story. VRT is up 58.52% YTD and 107.22% over one year. The S&P 500, by comparison, is up 12.21% YTD and 19.51% over the same twelve months. VRT has vastly outrun the index over a year yet has stalled recently, down 2.41% in the past month while the S&P added 0.99%.

Valuation runs rich. Shares trade at a 42x forward earnings multiple on $6.71 in 2026 EPS. That is the price of a name growing organic sales in the 30s with expanding margins and a net cash balance sheet.

Where I Actually Come Down on Vertiv Here Vertiv looks compelling at these levels if the bull case holds. Q3 delivers the guided 34%-plus organic growth, the H2 timing shifts resolve as management promised, and liquid-cooling attach rates keep climbing as GB300 and Vera Rubin platforms roll out. That path gets consensus to $338 comfortably and gives Loop’s $500 a real runway toward 2027 as EPS scales toward $9.10. But the risk/reward inverts if the bear case bites. Multi-phase project complexity turns into recurring push-outs, tariffs squeeze the price-cost equation, hyperscale capex digestion arrives sooner than expected, and a 42x forward multiple compresses fast on any growth wobble.

My lean is constructive. Estimates are moving up, not down, and the operating results support the bullish revisions. Loop’s 100% rally call is aggressive and depends on 2027 execution, but the base-case 32% gap to consensus looks like the market punishing complexity commentary while the underlying thesis remains intact. Investors who can stomach a high-beta name with a rich multiple are being offered a better entry than they’ve had in months.

Contact [email protected] for any questions or corrections.

~$1.45 billion acquisition expected to expand Vertiv's addressable opportunity in power-constrained data centers

Adds microgrid controls, onsite generation orchestration, microgrid-specific switchgear and behind-the-meter power architecture to Vertiv's portfolio Extends Vertiv's power and cooling portfolio from grid interconnect to chip, independent of any single generation technology or supplier UIG's proven team and proprietary technology expected to help customers accelerate time to power through grid-connected or grid-independent architectures , /PRNewswire/ -- Vertiv Holdings Co. (NYSE: VRT) ("Vertiv"), a global leader in critical digital infrastructure, today announced its wholly-owned subsidiary, Vertiv Corporation, has entered into an agreement and plan of merger to acquire Utility Innovation Holdings, Inc., which operates as UtilityInnovation Group ("UIG"), a leader in microgrid solutions, advanced power controls and behind-the-meter power architecture design for data centers, for approximately $1.45 billion in cash at closing, with additional consideration of up to $1.15 billion in cash based on achieving certain earnings before interest, taxes, depreciation and amortization ("EBITDA") targets over 12- and 24-month periods.

Vertiv Announces Agreement to Acquire UtilityInnovation Group to Accelerate Time to Power for AI Data Centers At the approximately $1.45 billion purchase price, the acquisition represents approximately 13x expected UIG 2027 EBITDA. The EBITDA multiple is anticipated to be significantly lower if the full earnout is paid. Vertiv expects the acquisition to be accretive to adjusted earnings per share in the first year following completion. Strategically, the acquisition extends Vertiv upstream to the grid interconnect, adding microgrid controls, onsite generation and energy storage orchestration, and behind-the-meter power architecture. These capabilities are expected to help data center operators secure power faster as grid constraints increasingly limit AI infrastructure deployment.

As power availability becomes a more critical factor in data center development, architecture decisions are moving earlier in the planning process. Microgrid systems can coordinate onsite generation and energy storage, reduce reliance on utility power and support the grid when needed. This is expanding the importance of power architecture at the earliest stages of site development, when decisions can have significant implications for downstream infrastructure.

"For AI data center operators, competitive advantage increasingly depends on how quickly they can move from site selection to first token," said Gio Albertazzi, Chief Executive Officer, Vertiv. "Vertiv has the most complete power and cooling portfolio in the industry. With UIG, we anticipate extending that portfolio upstream to the utility interconnect and onsite power sources, creating a coordinated architecture from source to chip without tying customers to a single generation technology or supplier."

Albertazzi continued: "Together, we anticipate being better positioned to support grid-connected sites, bridge-to-grid deployments and islanded sites supplied by onsite generation, while reducing complexity from site planning through rack-level deployment. This broader capability can help customers accelerate time to power and, ultimately, time to first token."

UIG Founder and CEO Sidney Hinton added: "UIG was founded to solve increasingly complex power challenges for data center operators through flexible, technology-agnostic architectures. Vertiv's global scale, critical infrastructure portfolio and service capabilities make it a strong strategic fit for what we have built. We believe this combination can expand the reach of UIG's microgrid controls and power architecture expertise and create greater value for customers as power becomes an increasingly critical constraint on data center growth."

Expanding Vertiv's Onsite Power Capabilities

UIG's expertise and technologies complement Vertiv's existing offerings:

Experience: Design and delivery of microgrid systems for AI data center operators across the United States and Europe, supported by extensive utility relationships and experience with complex, large-scale deployments. UIG's designs are generation-agnostic, allowing architectures to be built around the technologies a site can permit, fuel and finance. Expertise: Behind-the-meter power architecture design that engages customers at the earliest planning stages, before equipment is selected. This enables Vertiv to help define the power blueprint that shapes downstream infrastructure decisions, supported by pre-validated reference designs for grid-connected, bridge-to-grid and islanded sites. Technology: Proprietary controls platform and pre-engineered microgrid switchgear that orchestrate multiple power sources in real time and coordinate them with the critical power train. Today, Vertiv brings deep systems and controls expertise across the critical power train, supported by an end-to-end power and cooling portfolio and global service network. Combined with UIG, Vertiv expects to help customers design and deploy integrated power architectures that improve speed, resiliency, efficiency, and flexibility.

Expected customer and operator benefits include:

Faster access to power with less dependence on utility interconnection timelines Ability to scale site capacity beyond what the grid alone can provide A single accountable relationship from grid interconnect through rack-level infrastructure Together, these capabilities are expected to give customers greater flexibility in how they source, manage and scale power as data center requirements evolve.

About UIG

Founded in 2020, UIG is headquartered in Raleigh, North Carolina, with European headquarters in Dublin, Ireland, and manufacturing operations in North Carolina and New Jersey. The company designs and delivers power systems that support real-time load and frequency balancing across behind-the-meter systems and utility-connected energy resources, helping address the power demands of AI data center workloads. Its solutions include proprietary controls software, customized microgrid switchgear and energy storage.

The transaction is subject to regulatory approvals and customary closing conditions and is expected to close in the fourth quarter of 2026.

J.P. Morgan Securities LLC is acting as financial advisor to Vertiv, and Buchanan Ingersoll & Rooney PC is serving as legal counsel. Morgan Stanley & Co. LLC is acting as financial advisor to UIG, and Davis Polk & Wardwell LLP is serving as legal counsel.

For more information on Vertiv's leading portfolio of power and thermal management, infrastructure solutions, IT systems, and services for critical digital applications, visit Vertiv.com.

About Vertiv
Vertiv (NYSE: VRT) brings together hardware, software, analytics and ongoing services to enable its customers' vital applications to run continuously, perform optimally and grow with their business needs. Vertiv solves the most important challenges facing today's data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Headquartered in Westerville, Ohio, USA, Vertiv does business in more than 130 countries. For more information, and for the latest news and content from Vertiv, visit Vertiv.com.

Category: Financial News

Forward-looking statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27 of the Securities Act, and Section 21E of the Securities Exchange Act. These statements are only a prediction. Actual events or results may differ materially from those in the forward-looking statements set forth herein. Readers are referred to Vertiv's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q for a discussion of these and other important risk factors concerning Vertiv and its operations. Those risk factors and risks related to the transaction, among others, could cause actual results to differ materially from historical performance and include, but are not limited to: the timing and consummation of the proposed transaction; the risk that the closing does not occur; expected expenses related to the transaction; the possible diversion of management time on issues related to the transaction; the ability of Vertiv to maintain relationships with customers and suppliers of UIG; the ability of Vertiv to retain management and key employees of UIG; and whether Vertiv would realize anticipated synergies and accretion contemplated by the acquisition. Vertiv is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

For investor inquiries, please contact: 
Lynne Maxeiner
Vice President, Global Treasury & Investor Relations
Vertiv
E: [email protected] 

For media inquiries, please contact:
Ruder Finn for Vertiv
E: [email protected] 

SOURCE Vertiv Holdings Co

A month has gone by since the last earnings report for Vertiv Holdings Co. (VRT - Free Report) . Shares have added about 18.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Vertiv due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Vertiv Q2 Earnings Beat Estimates, Net Sales Rise Year over YearVertiv Holdings delivered second-quarter 2026 adjusted earnings of $1.52 per share, up 60% year over year. The results beat the Zacks Consensus Estimate by 6.29%, supported by higher sales volume, operating productivity and margin expansion.

Net sales increased 24.1% year over year to $3.27 billion but missed the consensus estimate by 3.41%. Organic sales rose 18%, while acquisitions and favorable foreign exchange contributed 5% and 1%, respectively.

VRT’s Regional Sales Show Broad-Based GrowthAmericas net sales rose 29% year over year to $2.07 billion, with organic growth of 21%. Management said that minor timing shifts tied to temporary supply-chain congestion and multi-phased project execution affected second-quarter revenues, but expects the associated delays to resolve in the second half of 2026.

Asia Pacific sales advanced 29% year over year to $720 million, including 26% organic growth. Europe, the Middle East and Africa (EMEA) sales increased 2% year over year to $484 million, while organic sales declined 2%. Vertiv expects strengthening demand and pipeline conversion to return EMEA to organic growth in the second half.

Vertiv’s Revenue Mix Highlights Service MomentumProduct revenues increased 22.2% year over year to $2.65 billion, accounting for about 81% of total sales. Service revenues climbed 32.9% year over year to $627.6 million, outpacing product growth and reflecting demand across Vertiv's installed infrastructure base.

The company highlighted strong global pipeline momentum and expects another year of robust order growth. Management cited accelerating activity in the Americas, improving momentum in EMEA and broad-based strength across APAC. Pricing is expected to remain favorable and exceed inflation in 2026.

VRT’s Profitability Expands on Operating ExecutionSelling, general and administrative expenses increased 25% year over year to $494.4 million. 

Adjusted operating profit surged 51% year over year to $738 million, exceeding the midpoint of guidance by $28 million.

Adjusted operating margin expanded 410 basis points to 22.6% and came in 140 basis points above guidance. Operational execution, productivity and favorable price-cost performance drove the improvement, partly offset by tariff impacts and continued investments in capacity and engineering research and development.

Americas adjusted operating profit increased 48.6% year over year to $571 million. APAC’s adjusted operating profit surged 61.5% to $96 million, while EMEA’s adjusted operating profit rose 19.2% to $124 million.

Vertiv’s Cash Flow Strengthens Financial FlexibilityAs of June 30, 2026, cash and cash equivalents were $2.81 billion, $300 million in short-term investments and $2.94 billion in long-term debt. Liquidity totaled $5.6 billion, while net leverage was negative 0.1 times, reflecting a net cash position.

Net cash provided by operating activities totaled $1.10 billion compared with $322.9 million a year earlier. Adjusted free cash flow increased 234% to $925 million, aided by higher adjusted operating profit, working-capital efficiency and lower cash interest.

VRT’s AI Investments Support Capacity ExpansionCapital expenditures are expected to reach about 4% of 2026 sales, the high end of management's range. Vertiv is expanding manufacturing capacity globally while investing in future power architectures, advanced thermal systems, services and converged infrastructure for next-generation AI data centers.

The company is also advancing power systems that support both traditional alternating-current infrastructure and emerging 800-volt direct-current designs. Its thermal portfolio includes closed-loop cooling and fluid-management services intended to reduce ongoing water usage and lower water needs during data-center commissioning.

Vertiv Raises 2026 Guidance Across Key MetricsFor the third quarter of 2026, Vertiv expects net sales of $3.65 billion to $3.85 billion and adjusted earnings of $1.77 to $1.83 per share. Adjusted operating profit is projected to be between $898 million and $938 million, with an adjusted operating margin of 24% to 25%.

For 2026, net sales are now forecasted to be in the range of $13.8 billion to $14.2 billion, up $250 million at the midpoint from the prior guidance. Adjusted earnings are projected to be in the range of $6.65 to $6.75 per share, while adjusted operating profit is expected to be between $3.29 billion and $3.37 billion. Adjusted free cash flow guidance was raised to $2.4 billion-$2.6 billion.

How Have Estimates Been Moving Since Then?It turns out, estimates review flatlined during the past month.

VGM ScoresCurrently, Vertiv has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook Vertiv has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerVertiv belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, ServiceNow (NOW - Free Report) , has gained 25.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

ServiceNow reported revenues of $3.99 billion in the last reported quarter, representing a year-over-year change of +24%. EPS of $0.90 for the same period compares with $0.82 a year ago.

ServiceNow is expected to post earnings of $1.03 per share for the current quarter, representing a year-over-year change of +7.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

ServiceNow has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.

Allworth Financial LP decreased its position in Vertiv Holdings Co. (NYSE:VRT – Free Report) by 63.8% during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor owned 16,852 shares of the company’s stock after selling 29,684 shares during the period. Allworth Financial LP’s holdings in Vertiv were worth $5,642,000 as of its most recent filing with the SEC.

A number of other large investors have also recently bought and sold shares of VRT. Vermillion & White Wealth Management Group LLC boosted its position in Vertiv by 58.3% during the fourth quarter. Vermillion & White Wealth Management Group LLC now owns 152 shares of the company’s stock valued at $25,000 after purchasing an additional 56 shares during the last quarter. Sankala Group LLC bought a new position in shares of Vertiv in the fourth quarter valued at $27,000. Meeder Asset Management Inc. increased its holdings in Vertiv by 211.3% during the fourth quarter. Meeder Asset Management Inc. now owns 165 shares of the company’s stock worth $27,000 after buying an additional 112 shares during the last quarter. Rossby Financial LCC acquired a new position in Vertiv during the fourth quarter worth $27,000. Finally, Kohmann Bosshard Financial Services LLC bought a new stake in Vertiv during the fourth quarter worth $29,000. Institutional investors and hedge funds own 89.92% of the company’s stock.

Analyst Ratings Changes
A number of research analysts have recently commented on the stock. Bank of America lifted their price objective on shares of Vertiv from $370.00 to $440.00 and gave the company a “buy” rating in a research report on Friday, May 15th. Weiss Ratings downgraded shares of Vertiv from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, August 14th. JPMorgan Chase & Co. lifted their price target on Vertiv from $305.00 to $350.00 and gave the stock an “overweight” rating in a report on Friday, April 24th. Fox Advisors raised Vertiv from a “hold” rating to a “strong-buy” rating in a research report on Thursday, May 21st. Finally, Royal Bank Of Canada dropped their price objective on Vertiv from $418.00 to $337.00 and set an “outperform” rating on the stock in a research note on Thursday, July 30th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Buy” and a consensus price target of $357.83.

Read Our Latest Report on VRT
Vertiv Stock Performance
Shares of Vertiv stock opened at $264.25 on Friday. The company has a current ratio of 1.38, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62. The company has a market cap of $101.73 billion, a PE ratio of 59.79, a price-to-earnings-growth ratio of 1.07 and a beta of 2.06. The company has a 50 day moving average of $295.45 and a 200-day moving average of $287.04. Vertiv Holdings Co. has a 1-year low of $118.70 and a 1-year high of $379.93.

Vertiv (NYSE:VRT – Get Free Report) last posted its earnings results on Wednesday, July 29th. The company reported $1.52 EPS for the quarter, topping the consensus estimate of $1.43 by $0.09. The business had revenue of $3.27 billion for the quarter, compared to the consensus estimate of $3.38 billion. Vertiv had a net margin of 15.09% and a return on equity of 50.47%. The firm’s revenue was up 24.1% compared to the same quarter last year. During the same period last year, the company earned $0.95 EPS. Vertiv has set its Q3 2026 guidance at 1.770-1.830 EPS and its FY 2026 guidance at 6.650-6.750 EPS. As a group, equities research analysts forecast that Vertiv Holdings Co. will post 6.7 earnings per share for the current fiscal year.

Vertiv Dividend Announcement
The business also recently announced a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Monday, June 15th were paid a dividend of $0.0625 per share. The ex-dividend date of this dividend was Monday, June 15th. This represents a $0.25 annualized dividend and a yield of 0.1%. Vertiv’s dividend payout ratio is currently 5.66%.

Vertiv Profile
(Free Report)

Vertiv is a global provider of critical digital infrastructure and continuity solutions for data centers, communication networks and commercial and industrial environments. Headquartered in Columbus, Ohio, the company designs, manufactures and services equipment and software that support power availability, thermal management and IT infrastructure management for a broad set of end markets, including hyperscale and enterprise data centers, colocation providers, telecom operators and industrial customers.

The company’s product portfolio includes uninterruptible power supplies (UPS), power distribution units (PDUs), battery and DC power systems, precision cooling and thermal management equipment, racks and enclosures, and integrated modular infrastructure.

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Key Takeaways Vertiv's Q2 2026 net sales rose 24%, with Americas and APAC sales each climbing 29%. Vertiv expanded global capacity while advancing AC, 800V DC, cooling, and fluid management solutions. Vertiv expects Q3 2026 net sales of $3.65B-$3.85B as AI data center demand supports its growth. Vertiv (VRT - Free Report) is benefiting from the explosive growth in AI-driven data centers, which is fueling robust demand for its power, thermal and infrastructure solutions. The company is benefiting from robust demand across its core markets, particularly in the Americas and APAC regions. In the second quarter of 2026, net sales increased 24% year over year, with the Americas and APAC both growing 29%. EMEA also returned to positive net sales growth.

This broad-based demand is driven by accelerating digital transformation and the expansion of data centers, both of which require Vertiv’s advanced power and thermal management solutions. The company’s strong pipeline and accelerating sales cycles, especially among hyperscalers, enterprise and colocation customers, have underpinned this growth.

The company has rapidly expanded its global manufacturing footprint by adding new capacity in Malaysia, expanding five large plants in the Americas and increasing chiller capacity in EMEA. These investments have enabled Vertiv to deliver increasingly complex data center infrastructure solutions at scale, positioning the company as a leader in supporting next-generation AI data centers.

Vertiv’s differentiated technology portfolio is another pillar of its growth. The company is at the forefront of power architecture evolution, supporting both AC and emerging 800V DC solutions. Collaborations with industry leaders like NVIDIA and Foxconn’s VisionBay AI have resulted in landmark projects, such as Taiwan’s first AI data center featuring NVIDIA GB300 and the world’s first AI data center adopting 800V DC architectures. Vertiv’s advanced cooling and fluid management technologies, including closed-loop systems and PurgeRite NearZero, further set it apart by enabling nearly zero water consumption, a critical advantage for sustainable, high-density AI data centers.

Vertiv’s expanding AI data center footprint and manufacturing capacity signal further upside potential.  For the third quarter of 2026, Vertiv expects net sales of $3.65 billion to $3.85 billion.

VRT Suffers From Stiff CompetitionVertiv’s AI infrastructure solutions are facing increasing competition from Super Micro Computer (SMCI - Free Report) and Amphenol (APH - Free Report) . Both companies are expanding their offerings to support high-density, AI-driven data center deployments.

Super Micro Computer expanded its Data Center Building Block Solutions portfolio with 10 precision-engineered rack models designed for high-density AI data centers. Available in 44OU, 48U, 48OU, and 52U configurations, the racks feature factory pre-assembly and modular designs to accelerate deployment and reduce time-to-online. They support advanced liquid-cooling technologies and are certified for static loads exceeding 5,500 pounds. Super Micro Computer highlighted that its global manufacturing operations can produce up to 3,000 advanced racks per month, including 2,000 liquid-cooled units, thereby supporting faster deployment of scalable AI infrastructure worldwide.

Amphenol is benefiting from the surge in demand for AI infrastructure, which has become a transformative force for the company’s growth and market positioning. In the second quarter of 2026, IT datacom represented about 43% of sales and grew 63% organically year over year. This robust performance was driven by accelerating investments in AI data centers and Amphenol’s ability to capture a significant share of this unique interconnect opportunity.

Vertiv’s Share Price Performance, Valuation, and EstimatesVRT’s shares have surged 66.8% year to date compared with the broader Zacks Computer & Technology sector’s 18.1% rise. The Zacks Computers - IT Services industry declined 15.6% over the same period.

VRT Stock Performance
Image Source: Zacks Investment Research

Vertiv stock is trading at a premium, with a trailing 12-month Price/Book of 21.86X compared with the Computer and Technology sector’s 10.76X. VRT has a Value Score of F.

VRT Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 earnings is pegged at $6.64 per share, which has increased 3.58% over the past 30 days. This indicates a 58.10% increase from the year-ago quarter.

Vertiv currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Chip and memory stocks have grabbed the headlines, but one of the best-kept secrets in the artificial intelligence (AI) boom are the companies easing the power bottleneck. Vertiv (VRT -1.01%) is a leader in delivering power and cooling solutions for data centers and other markets, and demand for its technology is booming.

There's a looming shortage of electricity to support data center expansion and rising chip density inside these "AI factories." That's why leading cloud companies are investing not only in chips but also in power management systems that squeeze more compute out of every watt. That shift is already helping drive consistent 20%-plus quarterly revenue growth for Vertiv, with more runway ahead.

Image source: Getty Images.

Solving the power shortage Vertiv's trailing-12-month revenue has nearly doubled over the past three years to $11.5 billion. Analysts expect that growth to continue, with consensus estimates pointing to revenue approaching $22 billion by 2028.

The tailwind is simple: Data centers must extract every possible ounce of efficiency from limited power. Bank of America analysts project the U.S. will need more than 230 gigawatts of new generating capacity over the next five years -- more than double what utilities are expected to deliver. That gap helps explain why companies addressing the constraint, including Vertiv, could be among the most underappreciated ways to play the AI boom.

With power becoming scarcer, hyperscalers have to get more out of every megawatt already in their data centers -- a bullish setup for Vertiv. "We see a demand environment that continues to grow, and we continue to invest ahead of it -- planting seeds now that we expect to compound for years to come," Executive Chairman Dave Cote said.

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272.40

Why Vertiv stock remains a buy Vertiv's revenue grew 24% year over year in the second quarter, but another underappreciated part of the story is margin upside. Its adjusted operating margin in 2025 was about 20%, and management's full-year 2026 guidance implies 23.8% at the midpoint.

As revenue scales, the company can spread fixed costs across a larger base, supporting margin expansion and faster earnings growth. The stock looks pricey at a forward price-to-earnings ratio of 41, but that valuation is backed by analysts projecting roughly 37% annualized earnings growth over the next several years.

While Vertiv faces competition from larger players like Schneider Electric and Eaton, its advantage lies largely in switching costs. Once a data center installs power systems, replacing them is time-consuming and expensive, effectively locking in the customer.

As AI adoption continues to grow, increasingly complex chip configurations in data centers will require advanced thermal management. This makes Vertiv an excellent stock to profit from the growth in AI infrastructure.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Eaton Plc, Schneider Electric, and Vertiv. The Motley Fool has a disclosure policy.

Key Takeaways Vertiv is the scaled, profitable pure-play leader in AI data center power and cooling.VRT's second-quarter sales rose 24% to $3.27B as customers ramped infrastructure spending for AI.Modine's data center sales jumped 90%, but margins fell to 14.8% amid shortages and labor inefficiency. Artificial intelligence (AI) is driving expansion of data centers, bringing cooling and power infrastructure into sharper focus. This shift is creating opportunities for companies that supply the infrastructure behind modern data centers. Vertiv Holdings (VRT - Free Report) and Modine Manufacturing (MOD - Free Report) are two players positioned to benefit from this growing demand.

Both beat earnings in their latest quarterly releases. Modine reported adjusted earnings of $1.53 per share for the first quarter of fiscal 2027, up 44% year over year, beating the Zacks Consensus Estimate by 20.47%. Vertiv delivered second-quarter 2026 adjusted earnings of $1.52 per share, up 60% year over year, beating the Zacks Consensus Estimate by 6.29%.

While both companies are set to benefit from the AI-driven data center infrastructure boom, their positioning differs. Vertiv brings scale and integrated infrastructure capabilities, while Modine is sharpening its focus on thermal management solutions for data centers. Though smaller in scale, Modine is building a fast-growing cooling business that could reshape its growth trajectory in the coming years.

On a year-to-date basis, both stocks have performed well. Vertiv has gained 66% and Modine shares are up 51%.

Image Source: Zacks Investment Research

Still, one stock offers considerably stronger exposure to the AI data center space. Let's dive deeper into both stocks.

The Case for ModineModine's data center segment sales grew 90% year over year in the last reported quarter. This was the third straight quarter of record order intake, and backlog has nearly doubled over the past year, reflecting real, multi-year demand.That visibility is backed by contracts. Modine has locked in over $4 billion in Airedale chiller commitments running from calendar 2027 through 2029, with initial orders already flowing. Management reaffirmed guidance for 60-80% data center sales growth for fiscal 2027, segment earnings growth above 85%, and 50-70% organic growth in fiscal 2028.

The product pipeline supports that outlook. Modine's new 3-megawatt chiller packs 50% more cooling capacity into just a 9% larger footprint, and it's gaining traction across hyperscale, Neocloud and colocation customers. Deeper co-development with these customers also raises switching costs, which helps lock in future business.

That said, this growth is still concentrated in a handful of relationships. Management pointed to just three customers— two hyperscalers and one large Neocloud provider— as the primary drivers behind the recent surge in orders and backlog. That's a lot of near-term revenues riding on a small number of accounts, a sharper concentration risk than Vertiv's more diversified customer base.

Another key problem is margins. Component shortages hurt production and labor efficiency in the first quarter of 2027. Adjusted EBITDA margin for the segment fell to 14.8% from 22.1% a year earlier. Management attributes 450-550 basis points of that drop to excess labor and under-absorbed overhead from the supply disruption.

Modine is guiding a fast rebound— segment margin back to 19-20% by the second quarter. That’s a steep climb in a short window, and it leans heavily on supply normalizing on schedule. Pricing actions, surcharges and other commercial levers should help over time, but they do not fix cost pressure immediately, and any further commodity inflation or slow customer reimbursement could push the recovery timeline out further.Management itself has called the coming production ramp and capacity rollout a "heavy lift," as the company juggles component shortages and new manufacturing line activation.

Reflecting the execution risks, the Zacks Consensus Estimate for MOD's EPS has been revised downward recently.

Image Source: Zacks Investment Research

The Case for VertivVertiv's business is built entirely around what AI data centers need most— power and thermal management— unlike Modine, where data centers are just one (though fastest-growing) piece of a broader industrial portfolio.

Second-quarter 2026 net sales rose 24% year over year to $3.27 billion, driven by broad-based demand as hyperscalers, enterprise customers and colocation providers all ramped up infrastructure spending to keep pace with AI deployments. Rising rack density and faster build cycles are pushing customers toward the kind of advanced power and cooling systems Vertiv specializes in, and a strong sales pipeline with accelerating deal cycles has kept converting that demand into revenues.

Profitability moved in the right direction too. Adjusted operating margin came in at 22.6% in the second quarter, up 410 basis points year over year. Management guided 24-25% margin in the third quarter on the back of organic growth, operating leverage and further productivity improvements.

Vertiv has been expanding manufacturing capacity aggressively and globally. The company added new capacity in Malaysia, expanded five large plants across the Americas, and increased chiller production in EMEA. That footprint lets Vertiv deliver complex, large-scale infrastructure solutions.

Last month, Vertiv announced an expansion at its Tognana campus near Padua, Italy, for scaling up manufacturing and testing for AI-ready cooling systems. The project is set to double regional chiller production capacity by the end of 2026, with a large-scale testing lab coming in early 2027 to validate chillers working alongside liquid cooling systems under high-density AI workloads. The company is also working with NVIDIA and Foxconn's VisionBay AI on Taiwan AI data center deployments, including power, thermal and services for NVIDIA GB300 systems.

Together, the sales growth and capacity buildout point to more room to run. Vertiv guided third-quarter net sales of $3.65 billion to $3.85 billion, suggesting the momentum from the AI data center buildout isn't slowing down anytime soon.

Analysts seem to be growing more bullish on the stock, as reflected in rising consensus EPS estimates.

Image Source: Zacks Investment Research

Vertiv Has the EdgeModine's growth story is real, but it's still finding its footing at scale. Data center margins fell this quarter, and the promised rebound hinges on supply chains cooperating on a tight timeline. That's a lot of execution risk riding on one segment of a diversified business. MOD currently carries a Zacks Rank #3 (Hold).

Vertiv doesn't have that problem. It's already the scaled, pure-play leader in AI data center infrastructure. It has been expanding margins while growing revenues and backing it with real manufacturing capacity. Rising analyst estimates confirm the momentum.

For investors wanting AI data center exposure, VRT—which sports a Zacks Rank #1 (Strong Buy)— is the stronger pick.

You can see the complete list of today’s Zacks #1 Rank stocks here.

HomeStock IdeasLong IdeasIndustrial 

SummaryVertiv is upgraded to 'Buy' as earnings estimates rise despite a recent stock pullback.Q1 results showed strong EPS and margin growth, with a 51% YoY adjusted operating profit increase and a 22.6% margin.Management raised the FY 2026 outlook across all key metrics, projecting $14 billion in net sales and $6.70 EPS.VRT trades at a compelling growth-adjusted valuation, with technicals signaling potential recovery from oversold conditions. onurdongel/iStock via Getty Images

July was not a kind month to the AI trade. Throw a dart at Industrial-Tech names linked to the data center buildout and semiconductor themes, and chances are that you’ll land on red. That goes for shares of Vertiv (

9.51K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Vertiv Holdings (NYSE:VRT | VRT Price Prediction) trades at $222.44, while the Wall Street consensus price target sits at $376.15, an implied upside of roughly 69%. Loop Capital’s Ananda Baruah carries a Street-high $500 target that implies gains of roughly 125% from here.

Vertiv designs the power and thermal infrastructure for AI data centers, from switchgear to direct-to-chip liquid cooling. It joined the S&P 500 in March 2026 and earned investment-grade credit ratings shortly after. Wall Street has treated it as a pure-play AI infrastructure name for two years.

The recent gap between price and target matters: either the market is right that growth is slowing, or analysts are right that this is a reset in a still-accelerating business.

A One-Day Earnings Reaction Erased a Month of Gains Vertiv fell 17.48% in a single session after reporting Q2 2026 results, capping a 27.34% drop over the past month. Revenue rose 24.1% to $3.27 billion, adjusted EPS came in at $1.52 (a fifth straight beat), and free cash flow jumped 234%. The issue was expectations. After a 55% surge in Q1 and a backlog of $15 billion exiting 2025, investors were pricing in acceleration. Instead, they got EMEA growth of just 1.7%, tariff commentary, and full-year EPS guidance of $6.65 to $6.75 that some viewed as conservative against the backlog setup.

Why the Sell Side Is Not Blinking Analysts see a mismatch between a one-quarter timing issue and a multi-year build cycle. Coverage skews decisively bullish: 3 Strong Buy, 19 Buy, 3 Hold, 0 Sell, and 1 Strong Sell. The consensus $376.15 target sits well above current levels, and Loop Capital’s $500 case is the loudest voice.

Baruah’s thesis centers on Vertiv’s position as the primary vendor for direct-to-chip liquid cooling as GPU densities exceed air-cooling limits. He models multi-year margin expansion as hyperscalers migrate to Vertiv’s architectures, plus premium pricing from record backlog that peers cannot match.

Management’s math backs the bull case. Full-year 2026 EPS guidance implies 58% to 61% growth, and Q3 organic growth was guided to 34% to 36%. CEO Giordano Albertazzi told investors “Demand for AI and general compute continues to intensify… Our pipelines continue to strengthen as the market expands globally.” The range of upside here (69% to 125%) is unusually wide for a large-cap industrial.

The Data Center Power Group Sold Off Together Vertiv did not fall alone. Every major electrical infrastructure name took a hit in the past month, though Vertiv fell hardest among megacaps.

Eaton (NYSE:ETN) is down 11.36% over the past month to $361.88, versus a consensus target of $455.79, or roughly 26% upside. Coverage skews 22 Buy-equivalent, 4 Hold, 1 Strong Sell.

nVent Electric (NYSE:NVT) is off 18.09% to $133.61. The $190.60 target implies roughly 43% upside, with 14 Buy ratings against 1 Strong Sell and no Holds.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Generac (NYSE:GNRC) is the worst peer performer, down 31.23% to $195.19 despite a Q2 EPS beat of 44.65%. The $293.75 target implies about 50% upside, but sentiment is mixed at 13 Buy, 6 Hold, 1 Strong Sell.

Across the group, Vertiv carries the largest analyst-implied upside by a wide margin when Loop’s $500 case is included. Wall Street treats VRT as the deepest dislocation in the space.

What the Numbers Actually Say Vertiv trades at $222.44 against a consensus target of $376.15, implying roughly 69% upside, with Loop Capital’s Street-high $500 case pushing gains to about 125%. Twenty-six analysts cover the name, and the balance is 3 Strong Buy, 19 Buy, 3 Hold, 0 Sell, 1 Strong Sell.

Performance tells the whipsaw story. Despite the 27% one-month drop, VRT is still up 37.73% year-to-date and 56.47% over the past year. The S&P 500 is up 6.97% year-to-date. Even after the selloff, Vertiv has trounced the index.

The stock now trades at roughly 33 times the midpoint of full-year 2026 EPS guidance. The valuation is still rich, though a real reset from the peak.

Where I Come Down on Vertiv The bull case for Vertiv rests on the AI infrastructure build being a multi-year cycle, EMEA stabilizing, and the record $15 billion backlog converting on schedule. That path leads to Loop Capital’s $500 case and the consensus $376. Margins are expanding, cash flow is real, and management just raised guidance again.

The bear case builds if EMEA weakness spreads, tariff costs erode margins, or the hyperscaler capex cycle cools. At 33 times forward earnings, VRT needs execution. Any timing slippage on backlog conversion punishes the stock disproportionately, as this quarter proved.

My lean is constructive. The peer group sold off together, but Vertiv carries the biggest analyst-implied upside and the strongest secular hook to AI power density. The one-month move looks more like a reset of overheated expectations than a break in the thesis.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Contact [email protected] for any questions or corrections.

Second Quarter 2026 Results

Net sales of $3,274 million, 24% higher than second quarter 2025. Operating profit up 44% and adjusted operating profit(1) up 51% from second quarter 2025. Adjusted operating margin of 22.6%, up 410 basis points compared to second quarter 2025. Diluted EPS grew 53% to $1.27 and adjusted diluted EPS grew 60% to $1.52 compared to second quarter 2025. Operating cash flow of $1,100 million and adjusted free cash flow of $925 million, an increase of 241% and 234%, respectively, compared to prior year second quarter. Achieved a net cash position at the end of second quarter 2026. Full Year 2026 Guidance

Expects full year 2026 net sales of $14,000 million and organic sales growth of 31%, each at the midpoint of guidance, compared to full year 2025. Expects full year 2026 diluted EPS of $5.82 to $5.92 and adjusted diluted EPS of $6.65 to $6.75, a midpoint increase of 72% and 60%, respectively, compared to full year 2025. , /PRNewswire/ -- Vertiv Holdings Co (NYSE: VRT) ("Vertiv"), a global leader in critical digital infrastructure, reported financial results for its second quarter ended June 30, 2026. Vertiv reported second quarter net sales of $3,274 million, an increase of $636 million, or 24%, compared to second quarter 2025, reflecting 18% organic sales growth, a 5% contribution from acquisitions, and a 1% benefit from favorable foreign currency translation. Second quarter revenue reflected minor timing shifts, primarily due to temporary supply chain congestion and multi-phased project execution as deployments scale in size and complexity. The strong demand environment, growing pipelines, and the continual capacity expansions underway to serve customers give Vertiv the confidence to raise full year net sales guidance, along with increases to other associated financial metrics.

Second quarter operating profit of $638 million increased $196 million and adjusted operating profit of $738 million increased $249 million, up 44% and 51%, respectively, from second quarter 2025. Adjusted operating margin was 22.6%, up 410 basis points compared to second quarter 2025, driven by operational execution, continued strong productivity, and favorable price-cost, inclusive of tariff impacts and associated countermeasures.

"This quarter reflects the compounding effect of years of deliberate investment in technology, capacity, and customer partnerships," said Giordano Albertazzi, Vertiv's Chief Executive Officer. "Demand for AI and general compute continues to intensify and with each technology advancement, deployments grow more complex and more infrastructure-intensive. Our understanding of how power and thermal infrastructure responds at scale allows us to move at the speed our customers require. Growth at this pace demands both vision and operational precision — and Vertiv delivers on each, with the innovation to lead and the execution to scale efficiently. Our pipelines continue to strengthen as the market expands globally, giving us confidence to raise guidance and conviction in sustained, strong performance — this year and beyond."

"Vertiv continues to demonstrate what happens when a company is positioned at the center of a structural, long-duration shift in technology infrastructure and executes with rigor," said Dave Cote, Vertiv's Executive Chairman. "We are moving at the speed of technology and transforming how customers build and scale critical infrastructure. We see a demand environment that continues to grow, and we continue to invest ahead of it — planting seeds now that we expect to compound for years to come."

Adjusted Free Cash Flow and Liquidity
Net cash generated by operating activities in the second quarter was $1,100 million, and adjusted free cash flow was $925 million, increasing 241% and 234%, respectively, from second quarter 2025. Second quarter adjusted free cash flow was driven by higher adjusted operating profit, working capital efficiency, and lower cash interest, partially offset by higher cash taxes and increased capital expenditures to support growth investments.

Vertiv ended the second quarter with $5.6 billion of liquidity and a net cash position, further strengthening the balance sheet and providing significant strategic optionality. Capital expenditures for full year 2026 are expected to be approximately 4.0% of revenue, at the high end of the range. Vertiv is continuing to invest to support the strong demand it sees across its pipelines.

Updated Full Year and Third Quarter 2026 Guidance
The data center market continues to demonstrate strong momentum, with demand fundamentals reinforcing the durability of the growth environment. Vertiv is further accelerating capacity expansion and strategic investments to meet this demand and capture market share. 

Third Quarter 2026 Guidance

Net sales

$3,650M - $3,850M

Organic net sales growth(2)

34% - 36%

Adjusted operating profit(1)

$898M - $938M

Adjusted operating margin(2)

24.0% - 25.0%

Adjusted diluted EPS(1)

$1.77 - $1.83

Adjusted diluted EPS growth(2)

43% - 48%

Full Year 2026 Guidance

Net sales

$13,800M - $14,200M

Organic net sales growth(2)

30% - 32%

Adjusted operating profit(1)

$3,285M - $3,365M

Adjusted operating margin(2)

23.3% - 24.3%

Adjusted diluted EPS(1)

$6.65 - $6.75

Adjusted diluted EPS growth(2)

58% - 61%

Adjusted free cash flow(2)

$2,400M - $2,600M

(1)

This release contains certain non-GAAP metrics. For reconciliations to the relevant GAAP measures and an explanation of the non-GAAP measures and reasons for their use, please refer to sections of this release entitled "Non-GAAP Financial Measures" and "Reconciliation of GAAP and non-GAAP Financial Measures."

(2)

This is a forward-looking non-GAAP financial measure that cannot be reconciled without unreasonable efforts for those reasons set forth under "Non-GAAP Financial Measures" of this release.

Second Quarter 2026 Earnings Conference Call
Vertiv's management team will discuss the Company's results during a conference call on Wednesday, July 29, starting at 11 a.m. Eastern Time. The call will contain forward-looking statements and other material information regarding Vertiv's financial and operating results. A webcast of the live conference call will be available for interested parties to listen to by going to the Investor Relations section of the Company's website at investors.vertiv.com. A slide presentation will be available before the call and will be posted to the website, also at investors.vertiv.com. A replay of the conference call will also be available for 30 days following the webcast.

About Vertiv Holdings Co
Vertiv (NYSE: VRT) brings together hardware, software, analytics and ongoing services to enable its customers' vital applications to run continuously, perform optimally and grow with their business needs. Vertiv solves the most important challenges facing today's data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Headquartered in Westerville, Ohio, USA, Vertiv does business in more than 130 countries. For more information, and for the latest news and content from Vertiv, visit vertiv.com.

Category: Financial News

Non-GAAP Financial Measures
Financial information included in this release has been prepared in accordance with Generally Accepted Accounting Principles ("GAAP"). Vertiv has included certain non-GAAP financial measures in this news release, as indicated above, that may not be directly comparable to other similarly titled measures used by other companies and therefore may not be comparable among companies. These non-GAAP financial measures include organic net sales growth (including on a segment basis), adjusted operating profit, adjusted operating margin, adjusted diluted EPS and adjusted free cash flow, which management believes provides investors with useful supplemental information to evaluate the Company's ongoing operations and to compare with past and future periods. Management also uses certain non-GAAP measures internally for forecasting, budgeting and measuring its operating performance. These measures should be viewed as supplementing, and not as an alternative or substitute for, the Company's financial results prepared in accordance with GAAP. Pursuant to the requirements of Regulation G, Vertiv has provided reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures.

Information reconciling certain forward-looking GAAP measures to non-GAAP measures related to third quarter and full year 2026 guidance, including organic net sales growth, adjusted free cash flow and adjusted operating margin, is not available without unreasonable effort due to high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations. For those reasons, we are unable to compute the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.

See "Reconciliation of GAAP and Non-GAAP Financial Measures" in this release for Vertiv's reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures.

Cautionary Note Concerning Forward-Looking Statements
This news release, and other statements that Vertiv may make in connection therewith, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to Vertiv's future financial or business performance, strategies or expectations, and as such are not historical facts. This includes, without limitation, statements regarding Vertiv's financial position, capital structure, indebtedness, business strategy and plans and objectives of Vertiv management for future operations, as well as statements regarding growth, anticipated demand for our products and services and our business prospects during 2026, as well as expected impacts from our pricing actions, and our guidance for third quarter and full year 2026 and statements regarding tariffs, global trade conflict and any actions we may take in response thereto. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. Vertiv cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this news release, words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "strive," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements contained in this release are based on current expectations and beliefs concerning future developments and their potential effects on Vertiv. There can be no assurance that future developments affecting Vertiv will be those that Vertiv has anticipated. Vertiv undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond Vertiv's control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Vertiv has previously disclosed risk factors in its Securities and Exchange Commission ("SEC") reports, including those set forth in the Vertiv 2025 Annual Report on Form 10-K filed with the SEC on February 13, 2026. These risk factors and those identified elsewhere in this release, among others, could cause actual results to differ materially from historical performance and include, but are not limited to: risks relating to the continued growth of our customers' markets; long sales cycles for certain Vertiv products and solutions as well as unpredictable placing or cancelling of customer orders; failure to realize sales expected from our backlog of orders and contracts; disruption of or consolidation in our customer's markets or categorical shifts in customer technology spending; less leverage with large customer contract terms; failure to mitigate risks associated with long-term fixed price contracts; competition in the industry in which we operate; failure to obtain performance and other guarantees from financial institutions; risks associated with governmental contracts; failure to properly manage production cost changes and supply; failure to anticipate market change and competition in the infrastructure technologies; risks associated with information technology disruption or cyber-security incidents; risks associated with the implementation and enhancement of information systems; failure to realize the expected benefit from any rationalization, restructuring and improvement efforts; disruption of, or changes in, Vertiv's independent sales representatives, distributors and original equipment manufacturers; increase of variability in our effective tax rate costs or liabilities associated with product liability due to global operations subjecting us to income and other taxes in the U.S. and numerous foreign entities; costs or liabilities associated with product liability and damage to our reputation and brands; the global scope of Vertiv's operations, especially in emerging markets; failure to benefit from future significant corporate transactions; risks associated with Vertiv's sales and operations and expanding global production facilities; risks associated with future legislation and regulation of Vertiv's customers' markets; our ability to comply with various laws and regulations including but not limited to, laws and regulations relating to data protection and data privacy; failure to properly address legal compliance issues, particularly those related to imports/exports, anti-corruption laws, and foreign operations; risks associated with foreign trade policy, including tariffs and global trade conflict risks associated with litigation or claims against the Company, including the risk of adverse outcomes to any legal claims and proceedings; our ability to protect or enforce our proprietary rights on which our business depends; third party intellectual property infringement claims; liabilities associated with environmental, health and safety matters; failure to achieve environmental, social and governance goals; failure to realize the value of goodwill and intangible assets; exposure to fluctuations in foreign currency exchange rates; failure to remediate material weaknesses in our internal controls over financial reporting; our level of indebtedness and our ability to comply with the covenants and restrictions contained in our credit agreements; our ability to access funding through capital markets; resales of Vertiv securities may cause volatility in the market price of our securities; our organizational documents contain provisions that may discourage unsolicited takeover proposals; our certificate of incorporation includes a forum selection clause, which could discourage or limit stockholders' ability to make a claim against it; the ability of our subsidiaries to pay dividends; factors relating to the business, operations and financial performance of Vertiv and its subsidiaries, including: global economic weakness and uncertainty; our ability to attract, train and retain key members of our leadership team and other qualified personnel; the adequacy of our insurance coverage; fluctuations in interest rates materially affecting our financial results and increasing the risk our counterparties default in our interest rate hedges; our incurrence of significant costs and devotion of substantial management time as a result of operating as a public company; expected expenses related to integration of our acquisitions; the possible diversion of management time on issues related to integration of our acquired businesses; the ability of Vertiv to maintain relationships with customers and suppliers of our acquired businesses; and the ability of Vertiv to retain management and key employees of our acquired businesses; and other risks and uncertainties indicated in Vertiv's SEC reports or documents filed or to be filed with the SEC by Vertiv. Forward-looking statements included in this news release speak only as of the date of this news release or any earlier date specified for such statements. All subsequent written or oral forward-looking statements attributable to Vertiv or persons acting on Vertiv's behalf may be qualified in their entirety by this Cautionary Note Concerning Forward-Looking Statements.

For investor inquiries, please contact:
Lynne Maxeiner
Vice President, Global Treasury & Investor Relations
Vertiv
E: [email protected]

For media inquiries, please contact:
Ruder Finn for Vertiv
E: [email protected]

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)

Vertiv Holdings Co

(Dollars in millions except for per share data)

Three months ended

June 30, 2026

Three months ended

June 30, 2025

Six months ended

June 30, 2026

Six months ended

June 30, 2025

Net sales

Net sales - products

$            2,646.7

$            2,166.0

$            4,782.5

$            3,815.7

Net sales - services

627.6

472.1

1,141.3

858.4

Net sales

3,274.3

2,638.1

5,923.8

4,674.1

Costs and expenses

Cost of sales - products

1,667.8

1,470.3

3,016.2

2,582.4

Cost of sales - services

371.6

271.2

673.0

508.6

Cost of sales

2,039.4

1,741.5

3,689.2

3,091.0

Operating expenses

Selling, general and administrative expenses

494.4

395.6

951.1

741.9

Amortization of intangibles

73.7

46.9

151.3

92.9

Restructuring costs

(3.9)

1.9

(8.8)

3.0

Foreign currency (gain) loss, net

3.9

2.3

2.3

4.9

Other operating expense (income)

28.9

7.5

60.7

7.3

Operating profit (loss)

637.9

442.4

1,078.0

733.1

Interest expense (income), net

17.4

21.3

13.0

46.6

Loss on extinguishment of debt

—

—

6.2

—

Other non-operating expense (income)

0.5

—

0.5

—

Income (loss) before income taxes

620.0

421.1

1,058.3

686.5

Income tax expense

122.2

96.9

170.4

197.8

Net income (loss)

$              497.8

$              324.2

$               887.9

$              488.7

Earnings (loss) per share:

Basic

$                1.29

$                0.85

$                 2.31

$                1.28

Diluted

$                1.27

$                0.83

$                 2.26

$                1.25

Weighted-average shares outstanding:

Basic

384,555,346

381,482,996

383,742,935

381,166,015

Diluted

392,746,991

389,846,827

392,511,287

389,977,516

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

Vertiv Holdings Co

(Dollars in millions)

June 30, 2026

December 31, 2025

ASSETS

Current assets:

Cash and cash equivalents

$             2,810.6

$             1,728.4

Short-term investments

300.0

99.5

Accounts receivable, less allowances of $29.1 and $25.6, respectively

3,750.3

3,109.0

Inventories

2,522.7

1,456.5

Other current assets

601.3

426.1

Total current assets

9,984.9

6,819.5

Property, plant and equipment, net

1,184.2

921.8

Other assets:

Goodwill

2,283.3

2,033.7

Other intangible assets, net

1,800.8

1,894.8

Deferred income taxes

170.1

179.6

Right-of-use assets, net

387.2

303.0

Other

90.4

60.0

Total other assets

4,731.8

4,471.1

Total assets

$           15,900.9

$           12,212.4

LIABILITIES AND EQUITY

Current liabilities:

Current portion of long-term debt

$                     —

$                  20.9

Accounts payable

2,473.1

1,756.4

Deferred revenue

3,633.7

1,814.7

Accrued expenses and other liabilities

1,061.4

771.6

Income taxes

74.8

43.4

Total current liabilities

7,243.0

4,407.0

Long-term debt, net

2,939.8

2,892.1

Deferred income taxes

234.1

232.8

Long-term lease liabilities

316.4

245.2

Other long-term liabilities

410.0

494.0

Total liabilities

11,143.3

8,271.1

Equity

Preferred stock, $0.0001 par value, 5,000,000 shares authorized, none issued and outstanding

—

—

Common stock, $0.0001 par value, 700,000,000 shares authorized, 384,936,985 and 382,553,680 shares issued
and outstanding at June 30, 2026 and December 31, 2025, respectively

—

—

Additional paid-in capital

2,954.8

2,895.2

Retained earnings

1,868.0

1,027.9

Accumulated other comprehensive (loss) income

(65.2)

18.2

Total equity

4,757.6

3,941.3

Total liabilities and equity

$           15,900.9

$           12,212.4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Vertiv Holdings Co

(Dollars in millions)

Three months ended

June 30, 2026

Three months ended

June 30, 2025

Six months ended

June 30, 2026

Six months ended

June 30, 2025

Cash flows from operating activities:

Net income (loss)

$               497.8

$              324.2

$               887.9

$              488.7

Adjustments to reconcile net income (loss) to net cash provided by
(used for) operating activities:

Depreciation

39.4

23.5

66.9

46.4

Amortization

76.4

49.8

156.6

98.5

Deferred income taxes

2.1

(10.2)

(26.1)

23.1

Amortization of debt discount and issuance costs

0.6

2.1

2.2

4.3

Stock-based compensation

13.8

13.3

30.8

24.5

Changes in operating working capital

451.0

(90.4)

678.8

(95.2)

Change in fair value of contingent consideration

28.8

—

62.0

—

Other

(10.1)

10.6

7.5

35.9

Net cash provided by (used for) operating activities

1,099.8

322.9

1,866.6

626.2

Cash flows from investing activities:

Capital expenditures

(173.3)

(45.0)

(285.9)

(81.5)

Investments in capitalized software

(1.2)

(0.9)

(2.6)

(3.2)

Purchase of short-term investments

(198.2)

(98.1)

(546.6)

(98.1)

Proceeds from maturities of short-term investments

251.5

—

351.5

—

Investment in affiliates

(5.1)

—

(19.0)

—

Acquisition of businesses, net of cash acquired

(277.7)

—

(278.1)

—

Net cash provided by (used for) investing activities

(404.0)

(144.0)

(780.7)

(182.8)

Cash flows from financing activities:

Proceeds from the issuance of long-term debt

—

—

2,100.0

—

Repayment of long-term debt

—

(5.2)

(2,076.1)

(10.5)

Dividend payment

(23.9)

(14.2)

(47.8)

(28.4)

Exercise of employee stock options

20.6

11.7

44.1

13.0

Employee taxes paid from shares withheld

(11.6)

(0.3)

(23.2)

(7.0)

Net cash provided by (used for) financing activities

(14.9)

(8.0)

(3.0)

(32.9)

Effect of exchange rate changes on cash and cash equivalents

3.5

9.0

2.9

13.3

Increase (decrease) in cash, cash equivalents and restricted cash

684.4

179.9

1,085.8

423.8

Beginning cash, cash equivalents and restricted cash

2,191.2

1,476.1

1,789.8

1,232.2

Ending cash, cash equivalents and restricted cash

$             2,875.6

$             1,656.0

$           2,875.6

$           1,656.0

Changes in operating working capital

Accounts receivable

$               (586.5)

$               (462.4)

$             (644.2)

$             (380.8)

Inventories

(663.8)

(8.9)

(1,048.0)

(137.5)

Other current assets

(56.8)

5.6

(145.3)

(23.9)

Accounts payable

482.5

183.0

685.3

269.5

Deferred revenue

1,171.5

148.1

1,822.7

171.5

Accrued expenses and other liabilities

117.6

36.3

22.2

(43.3)

Income taxes

(13.5)

7.9

(13.9)

49.3

Total changes in operating working capital

$                 451.0

$                  (90.4)

$              678.8

$               (95.2)

Reconciliation of GAAP and non-GAAP Financial Measures
To supplement this news release, we have included certain non-GAAP financial measures in the format of performance metrics. Management believes these non-GAAP financial measures provide investors with additional meaningful financial information that should be considered when assessing our underlying business performance and trends. Further, management believes these non-GAAP financial measures also enhance investors' ability to compare period-to-period financial results. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the company's reported results prepared in accordance with GAAP. Our non-GAAP financial measures do not represent a comprehensive basis of accounting. Therefore, our non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of each of these non-GAAP financial measures to GAAP information are also included. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions and in evaluating the company's performance. Disclosing these non-GAAP financial measures allows investors and management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance.

Vertiv's non-GAAP financial measures include:

Adjusted operating profit (loss), which represents operating profit (loss), adjusted to exclude amortization of intangibles, restructuring costs associated with the global restructuring program, contingent consideration and merger and acquisition costs; Adjusted operating margin, which represents adjusted operating profit (loss) divided by net sales; Organic net sales growth, which represents the change in net sales adjusted to exclude the impacts of foreign currency exchange rate and acquisitions; Adjusted free cash flow, which represents net cash provided by (used for) operating activities adjusted to exclude capital expenditures and investments in capitalized software; and Adjusted diluted EPS, which represents diluted earnings per share adjusted to exclude amortization of intangibles, restructuring costs associated with the global restructuring program, contingent consideration and merger and acquisition costs, and the costs related to the March 3, 2026 repayment of the Term Loan Credit Agreement and the associated interest rate swaps being settled. Regional Segment Results

Three months ended June 30,

Six months ended June 30,

2026

2025

Δ

Δ%

Organic 
Δ%(2)

2026

2025

Δ

Δ%

Organic 
Δ%(2)

Net sales(1)

AMER

$ 2,070.8

$ 1,602.3

$   468.5

29.2 %

21.1 %

$ 3,885.2

$ 2,787.6

$ 1,097.6

39.4 %

31.0 %

APAC

719.9

560.2

159.7

28.5 %

25.7 %

1,233.6

1,007.4

226.2

22.5 %

19.6 %

EMEA

483.6

475.6

8.0

1.7 %

(2.4) %

805.0

879.1

(74.1)

(8.4) %

(14.8) %

Total

$ 3,274.3

$ 2,638.1

$   636.2

24.1 %

17.8 %

$ 5,923.8

$ 4,674.1

$ 1,249.7

26.7 %

19.9 %

Adjusted operating profit (loss)(3)

AMER

$    571.4

$    384.6

$   186.8

48.6 %

$ 1,061.6

$    644.3

$    417.3

64.8 %

APAC

95.6

59.2

36.4

61.5 %

163.0

104.9

58.1

55.4 %

EMEA

124.2

104.2

20.0

19.2 %

177.7

182.9

(5.2)

(2.8) %

Corporate(4)

(52.8)

(58.7)

5.9

(10.1) %

(111.7)

(106.1)

(5.6)

5.3 %

Total

$    738.4

$    489.3

$   249.1

50.9 %

$ 1,290.6

$    826.0

$    464.6

56.2 %

Adjusted operating margins(5)

AMER

27.6 %

24.0 %

3.6 %

27.3 %

23.1 %

4.2 %

APAC

13.3 %

10.6 %

2.7 %

13.2 %

10.4 %

2.8 %

EMEA

25.7 %

21.9 %

3.8 %

22.1 %

20.8 %

1.3 %

Vertiv

22.6 %

18.5 %

4.1 %

21.8 %

17.7 %

4.1 %

(1)

Segment net sales are presented excluding intercompany sales.

(2)

Organic basis is adjusted to exclude foreign currency exchange rate and the change in acquisition sales impact.

(3)

Adjusted operating profit (loss) is only adjusted at the Corporate segment. There are no adjustments at the reportable segment level between operating profit (loss) and adjusted operating profit (loss).

(4)

Corporate costs consist of headquarters management costs, asset impairments, and costs that support centralized global functions including Finance, Treasury, Risk Management, Strategy & Marketing, Legal, and Human Resources.

(5)

Adjusted operating margins calculated as adjusted operating profit (loss) divided by net sales.

Sales by product and service offering

Three months ended June 30,

2026

2025

Δ

Δ%

Americas:

Products

$       1,666.1

$       1,320.8

$          345.3

26.1 %

Services & spares

404.7

281.5

123.2

43.8 %

$       2,070.8

$       1,602.3

$          468.5

29.2 %

Asia Pacific:

Products

$          562.4

$          424.0

$          138.4

32.6 %

Services & spares

157.5

136.2

21.3

15.6 %

$          719.9

$          560.2

$          159.7

28.5 %

Europe, Middle East & Africa:

Products

$          377.9

$          374.1

$              3.8

1.0 %

Services & spares

105.7

101.5

4.2

4.1 %

$          483.6

$          475.6

$              8.0

1.7 %

Total:

Products

$       2,606.4

$       2,118.9

$          487.5

23.0 %

Services & spares

667.9

519.2

148.7

28.6 %

$       3,274.3

$       2,638.1

$          636.2

24.1 %

Six months ended June 30,

2026

2025

Δ

Δ%

Americas:

Products

$        3,142.0

$        2,279.1

$           862.9

37.9 %

Services & spares

743.2

508.5

234.7

46.2 %

$        3,885.2

$        2,787.6

$        1,097.6

39.4 %

Asia Pacific:

Products

$           943.5

$           757.8

$           185.7

24.5 %

Services & spares

290.1

249.6

40.5

16.2 %

$        1,233.6

$        1,007.4

$           226.2

22.5 %

Europe, Middle East & Africa:

Products

$           612.1

$           693.1

$            (81.0)

(11.7) %

Services & spares

192.9

186.0

6.9

3.7 %

$           805.0

$          879.1

$            (74.1)

(8.4) %

Total:

Products

$        4,697.6

$        3,730.0

$           967.6

25.9 %

Services & spares

1,226.2

944.1

282.1

29.9 %

$        5,923.8

$        4,674.1

$        1,249.7

26.7 %

Organic growth by product and service offering 

Three months ended June 30, 2026

Net Sales Δ

FX Δ

Acquisition Δ(1)

Organic growth

Organic Δ%(2)

Americas:

Products

$          345.3

$            (4.2)

$             (35.5)

$          305.6

23.1 %

Services & spares

123.2

(2.2)

(88.6)

32.4

11.5 %

$          468.5

$            (6.4)

$           (124.1)

$          338.0

21.1 %

Asia Pacific:

Products

$          138.4

$          (13.5)

$                 —

$          124.9

29.5 %

Services & spares

21.3

(2.3)

—

19.0

14.0 %

$          159.7

$          (15.8)

$                 —

$          143.9

25.7 %

Europe, Middle East & Africa:

Products

$              3.8

$          (11.0)

$               (5.1)

$           (12.3)

(3.3) %

Services & spares

4.2

(2.7)

(0.5)

1.0

1.0 %

$              8.0

$          (13.7)

$               (5.6)

$           (11.3)

(2.4) %

Total:

Products

$          487.5

$          (28.7)

$             (40.6)

$          418.2

19.7 %

Services & spares

148.7

(7.2)

(89.1)

52.4

10.1 %

$          636.2

$          (35.9)

$           (129.7)

$          470.6

17.8 %

(1)

The change in acquisition sales include all acquisition sales for the three months ended June 30, 2026.

(2)

Organic growth percentage change is calculated as organic growth divided by net sales for the three months ended June 30, 2025.

Six months ended June 30, 2026

Net Sales Δ

FX Δ

Acquisition Δ(1)

Organic growth

Organic Δ%(2)

Americas:

Products

$          862.9

$            (9.6)

$           (69.7)

$          783.6

34.4 %

Services & spares

234.7

(4.2)

(150.4)

80.1

15.8 %

$       1,097.6

$          (13.8)

$         (220.1)

$          863.7

31.0 %

Asia Pacific:

Products

$          185.7

$          (24.0)

$               —

$          161.7

21.3 %

Services & spares

40.5

(4.9)

—

35.6

14.3 %

$          226.2

$          (28.9)

$               —

$          197.3

19.6 %

Europe, Middle East & Africa:

Products

$           (81.0)

$          (38.7)

$             (5.5)

$         (125.2)

(18.1) %

Services & spares

6.9

(11.2)

(0.7)

(5.0)

(2.7) %

$           (74.1)

$          (49.9)

$             (6.2)

$         (130.2)

(14.8) %

Total:

Products

$          967.6

$          (72.3)

$           (75.2)

$          820.1

22.0 %

Services & spares

282.1

(20.3)

(151.1)

110.7

11.7 %

$       1,249.7

$          (92.6)

$         (226.3)

$          930.8

19.9 %

(1)

The change in acquisition includes all acquisitions sales for the six months ended June 30, 2026.

(2)

Organic growth percentage change is calculated as organic growth divided by net sales for the six months ended June 30, 2025.

Segment operating profit (loss)

Operating profit (loss)

Three months ended

June 30, 2026

Three months ended

June 30, 2025

Six months ended

June 30, 2026

Six months ended

June 30, 2025

Americas

$              571.4

$              384.6

$            1,061.6

$              644.3

Asia Pacific

95.6

59.2

163.0

104.9

Europe, Middle East & Africa

124.2

104.2

177.7

182.9

Total reportable segments

791.2

548.0

1,402.3

932.1

Foreign currency gain (loss)

(3.9)

(2.3)

(2.3)

(4.9)

Corporate

(75.7)

(56.4)

(170.7)

(101.2)

Total corporate and other

(79.6)

(58.7)

(173.0)

(106.1)

Amortization of intangibles

(73.7)

(46.9)

(151.3)

(92.9)

Operating profit (loss)

$               637.9

$               442.4

$             1,078.0

$              733.1

Reconciliation of net cash provided by (used for) operating activities to adjusted free cash flow

Three months ended

June 30, 2026

Three months ended

June 30, 2025

Six months ended

June 30, 2026

Six months ended

June 30, 2025

Net cash provided by (used for) operating activities

$            1,099.8

$              322.9

$            1,866.6

$              626.2

Capital expenditures

(173.3)

(45.0)

(285.9)

(81.5)

Investments in capitalized software

(1.2)

(0.9)

(2.6)

(3.2)

Adjusted free cash flow

$               925.3

$               277.0

$             1,578.1

$              541.5

Reconciliation from operating profit (loss) to adjusted operating profit (loss)

Three months ended

June 30, 2026

Three months ended

June 30, 2025

Six months ended

June 30, 2026

Six months ended

June 30, 2025

Operating profit (loss)

$              637.9

$              442.4

$            1,078.0

$              733.1

Amortization of intangibles

73.7

46.9

151.3

92.9

Contingent consideration

28.8

—

62.0

—

Restructuring costs - global programs                  

(3.9)

—

(3.9)

—

Mergers and acquisition costs

1.9

—

3.2

—

Adjusted operating profit (loss)

$              738.4

$              489.3

$            1,290.6

$              826.0

Reconciliation from operating margin to adjusted operating margin

Three months ended

June 30, 2026

Three months ended

June 30, 2025

Δ

Six months ended

June 30, 2026

Six months ended

June 30, 2025

Δ

Vertiv net sales

$        3,274.3

$        2,638.1

$  636.2

$        5,923.8

$        4,674.1

$ 1,249.7

Vertiv operating profit (loss)

637.9

442.4

195.5

1,078.0

733.1

344.9

Vertiv operating margin

19.5

%

16.8

%

2.7

%

18.2

%

15.7

%

2.5

%

Amortization of intangibles

$              73.7

$            46.9

$    26.8

$           151.3

$             92.9

$      58.4

Contingent consideration

28.8

—

28.8

62.0

—

62.0

Restructuring costs - global programs

(3.9)

—

(3.9)

(3.9)

—

(3.9)

Mergers and acquisition costs

1.9

—

1.9

3.2

—

3.2

Vertiv adjusted operating profit (loss)

738.4

489.3

249.1

1,290.6

826.0

464.6

Vertiv adjusted operating margin

22.6

%

18.5

%

4.1

%

21.8

%

17.7

%

4.1

%

Reconciliation of Diluted EPS to Adjusted Diluted EPS

Three months ended June 30, 2026

Operating profit
(loss)

Interest expense 
(income), net

Other non-operating expense
(income)

Income tax expense
(benefit)

Net income 
(loss)

Diluted
EPS(1)

GAAP

$          637.9

$           17.4

$            0.5

$          122.2

$          497.8

$           1.27

Amortization of intangibles

73.7

—

—

—

73.7

0.19

Contingent consideration(2)

28.8

—

—

—

28.8

0.07

Restructuring costs - global programs

(3.9)

—

—

—

(3.9)

(0.01)

Mergers and acquisition costs

1.9

—

—

—

1.9

—

Non-GAAP adjusted

$           738.4

$            17.4

$            0.5

$          122.2

$          598.3

$           1.52

Diluted shares (in millions)

392.7

(1)

Diluted EPS and adjusted diluted EPS is calculated using 392.7 million shares (includes 384.5 million basic shares and 8.2 million potential dilutive equity awards).

(2)

Contingent consideration associated with the PurgeRite acquisition.

Three months ended June 30, 2025

Operating profit
(loss)

Interest expense
(income), net

Income tax expense 
(benefit)

Net income
(loss)

Diluted
EPS(1)

GAAP

$               442.4

$                21.3

$                96.9

$             324.2

$           0.83

Amortization of intangibles

46.9

—

—

46.9

0.12

Non-GAAP adjusted

$               489.3

$                21.3

$                96.9

$             371.1

$           0.95

Diluted shares (in millions)

389.8

(1)

Diluted EPS and adjusted diluted EPS is calculated using 389.8 million shares (includes 381.5 million basic shares and 8.3 million potential dilutive equity awards).

Six months ended June 30, 2026

Operating profit 
(loss)

Interest expense
(income), net

Loss on
extinguishment of debt

Other non-operating expense 
(income)

Income tax expense
(benefit)

Net income
(loss)

Diluted
EPS(1)

GAAP

$        1,078.0

$           13.0

$            6.2

$            0.5

$          170.4

$          887.9

$           2.26

Amortization of intangibles

151.3

—

—

—

—

151.3

0.39

Contingent consideration(2)

62.0

—

—

—

—

62.0

0.16

Term loan credit agreement repayment(3) 

—

22.9

(6.2)

—

25.6

(42.3)

(0.11)

Restructuring costs - global programs

(3.9)

—

—

—

—

(3.9)

(0.01)

Mergers and acquisition costs

3.2

—

—

—

—

3.2

0.01

Non-GAAP adjusted

$        1,290.6

$           35.9

$             —

$            0.5

$          196.0

$        1,058.2

$           2.70

Diluted shares (in millions)

392.5

(1)

Diluted EPS and adjusted diluted EPS is calculated using 392.5 million shares (includes 383.7 million basic shares and 8.8 million potential dilutive equity awards).

(2)

Contingent consideration associated with the PurgeRite acquisition.

(3)

Costs associated with the March 3, 2026 repayment of the Term loan credit agreement, the gain recognized in "Interest expense (income), net" and the related tax impact associated with the interest rate swaps being settled.

Six months ended June 30, 2025

Operating profit
 (loss)

Interest expense
(income), net

Income tax
expense (benefit)

Net income
(loss)

Diluted
EPS(1)

GAAP

$               733.1

$                46.6

$               197.8

$             488.7

$            1.25

Amortization of intangibles

92.9

—

—

92.9

0.24

Non-recurring tax adjustment, net(2)

—

—

(39.5)

39.5

0.10

Non-GAAP adjusted

$               826.0

$                46.6

$               158.3

$             621.1

$            1.59

Diluted shares (in millions)

390.0

(1)

Diluted EPS and adjusted diluted EPS is calculated using 390.0 million shares (includes 381.2 million basic shares and 8.8 million potential dilutive equity awards).

(2)

Nonrecurring tax adjustment of $39.5 million due to recently issued guidance which changes our assessment of our realizability of certain deferred tax assets.

Vertiv Holdings Co

2026 Adjusted Guidance

            Reconciliation of Diluted EPS to Adjusted Diluted EPS(1)

Third Quarter 2026

Operating profit
(loss)

Interest expense
(income), net

Income tax
expense (benefit)

Net income
(loss)

Diluted
EPS(2)

GAAP

$              838.8

$               20.7

$              189.0

$              629.1

$               1.60

Amortization of intangibles

79.2

—

—

79.2

0.20

Non-GAAP adjusted

$              918.0

$               20.7

$              189.0

$              708.3

$               1.80

Diluted shares (in millions)

392.8

Full Year 2026

Operating profit
(loss)

Interest expense
(income), net

Loss on 

extinguishment of debt

Other non-operating
expense (income)

Income tax
expense (benefit)

Net income
(loss)

Diluted
EPS(3)

GAAP

$        2,956.9

$           49.5

$            6.2

$            0.5

$          596.2

$        2,304.5

$           5.87

Amortization of intangibles

306.8

—

—

—

—

306.8

0.78

Contingent consideration(4)

62.0

—

—

—

—

62.0

0.16

Term loan credit agreement repayment(5)

—

22.9

(6.2)

—

25.6

(42.3)

(0.11)

Restructuring costs - global programs

(3.9)

—

—

—

—

(3.9)

(0.01)

Mergers and acquisition costs

3.2

—

—

—

—

3.2

0.01

Non-GAAP adjusted

$        3,325.0

$           72.4

$             —

$            0.5

$          621.8

$        2,630.3

$           6.70

Diluted shares (in millions)

392.8

(1)

Information reconciling certain forward-looking GAAP measures to non-GAAP measures related to FY 2026 guidance, including organic net sales growth, adjusted operating margin and adjusted free cash flow, is not available without unreasonable effort due to high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations. For the same reasons, we are unable to compute the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.

(2)

Diluted EPS and adjusted diluted EPS based on 392.8 million shares (includes 385.0 million basic shares and 7.8 million potential dilutive equity awards).

(3)

Diluted EPS and adjusted diluted EPS based on 392.8 million shares (includes 384.4 million basic shares and 8.4 million potential dilutive equity awards).

(4)

Contingent consideration associated with the PurgeRite acquisition.

(5)

Costs associated with the March 3, 2026 repayment of the Term loan credit agreement, the gain recognized in "Interest expense (income), net" and the related tax impact associated with the interest rate swaps being settled.

SOURCE Vertiv Holdings Co

Vertiv Holdings (VRT -0.81%) stock more than doubled in the first half of 2026, surging 106.7% overall according to data provided by S&P Global Market Intelligence. It hit a 52-week high of $379.93 in mid-May.

When hyperscalers committed to spending over $650 billion combined going into 2026, they ran into a massive physical bottleneck. Artificial intelligence (AI) data centers stacked with high-density chips draw insane amounts of power and generate heat that would melt standard air-conditioning and power systems. Multi-billion-dollar AI infrastructures would crumble if you can't cool down those server racks 24X7.

That's where Vertiv stepped in and essentially cornered the market. Between explosive order flows, earnings growth, and acquisitions, the stock skyrocketed in the first six months of the year.

Image source: Getty Images.

A $15 billion backlog Because direct-to-chip liquid cooling has become an absolute necessity for data centers, Vertiv's order book is exploding. Its fourth-quarter organic orders jumped 252% year over year, and backlog more than doubled to a record $15 billion.

Its Q1 numbers again beat estimates, with net sales and operating profit surging 30% and 51%, respectively.

The company didn't disclose first-quarter orders, but expects strong order growth this year. Management immediately raised its full-year outlook, projecting 29% to 31% organic sales growth and 66% earnings-per-share growth at the midpoint.

Those numbers sent the stock into a tizzy, but Vertiv didn't just ride the numbers game.

Aggressive expansion to meet AI demand Vertiv has deepened its partnership with Nvidia this year.

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Current Price

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It adapted its existing OneCore modular infrastructure line into a version built for Nvidia's Vera Rubin DSX AI factory blueprint. Vertiv also added a digital twin of its SmartRun infrastructure system, allowing data center builders to simulate and test their power and cooling setup virtually before construction using Nvidia's software.

Vertiv is positioning itself as a core partner in Nvidia's AI build-out, and that's one of the reasons the stock has drawn investor attention in recent months.

Knowing that liquid-cooling components would be a bottleneck, Vertiv also went on a strategic buying spree, lapping up Strategic Thermal Labs, BMarko Structures, and ThermoKey, all in the first half of 2026.

In between, Vertiv announced a major expansion program, including two new manufacturing facilities in South Carolina that alone could boost regional capacity by nearly 7 times at full capacity. It also announced expansions in Pennsylvania and Mexico.

Should you buy Vertiv stock before July 29? Several analysts lifted their price targets as Vertiv stock outran their models. Loop Capital is among the most bullish, with a $500 per share price target. Analysts from the firm expect AI spending on power and cooling systems to surge through 2028, expanding Vertiv's AI data center revenue opportunity by almost 7x between 2023 and 2028.

Vertiv continues to expand. In July alone, it has opened a manufacturing facility in Malaysia to cater to AI infrastructure demand across Asia, including Southeast Asia, North Asia, Australia, and New Zealand. It has also announced plans to double chiller production near Italy by the end of this year.

Grand View Research's June report predicts that the global data center liquid cooling market will grow at an annualized rate of 20% from 2026 to 2033. Asia-Pacific will be the fastest-growing market, according to the report.

Vertiv is a hyper-growth AI infrastructure play, and remains a solid buy for 2026 and beyond. July 29 is the next big date to watch, when the company announces its second-quarter results before market open.

Expansions at the company's Tognana, Italy, technology campus support growing worldwide demand for advanced thermal infrastructure and strengthen Vertiv's cooling innovation capabilities

, /PRNewswire/ -- Vertiv (NYSE: VRT), a global leader in critical digital infrastructure, today announced investments at its Tognana campus near Padua, Italy, to expand manufacturing and integrated testing capabilities for data center cooling systems. The company expects the investments to double chiller production capacity in the region by the end of 2026 and plans to complete a new large-scale testing laboratory in early 2027, supporting growing demand for AI and high-density computing infrastructure.

Vertiv expects to double regional chiller manufacturing capacity with the expansion of its Tognana, Italy facility. The new laboratory will enable testing of large-scale chillers and validate their integration with liquid cooling systems under high-density load conditions and extreme temperature ranges. The expanded capability is intended to help customers validate thermal performance under expected site conditions and deploy increasingly complex cooling systems with greater speed and confidence.

"AI is driving thermal demands that didn't exist two years ago, with higher densities, faster deployment demands, and no room to compromise on reliability," said Gio Albertazzi, CEO of Vertiv. "The expansion at Tognana puts us further ahead with more manufacturing capacity, integrated testing, and advanced thermal management systems built for current and future generations of silicon. This investment reinforces our position at the front of the curve."

The campus serves as one of Vertiv's principal centers for cooling technology development, integrating research and development, product management, manufacturing, testing, and customer engagement. The site includes a Customer Experience Center where customers and consultants can participate in witness testing of a broad range of cooling technologies across the thermal chain under real-world operating conditions.

For more information on Vertiv's leading portfolio of power and thermal management, infrastructure solutions, IT systems, and services for critical digital applications, visit Vertiv.com. 

About Vertiv
Vertiv (NYSE: VRT) brings together hardware, software, analytics and ongoing services to enable its customers' vital applications to run continuously, perform optimally and grow with their business needs. Vertiv solves the most important challenges facing today's data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Headquartered in Westerville, Ohio, USA, Vertiv does business in more than 130 countries. For more information, and for the latest news and content from Vertiv, visit Vertiv.com.

Forward-looking statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27 of the Securities Act, and Section 21E of the Securities Exchange Act. These statements are only a prediction. Actual events or results may differ materially from those in the forward-looking statements set forth herein. Readers are referred to Vertiv's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q for a discussion of these and other important risk factors concerning Vertiv and its operations. Vertiv is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT
[email protected]

SOURCE Vertiv Holdings Co

Strategic Thermal Labs delivers advanced liquid cooling and thermal engineering solutions for high-performance computing

, /PRNewswire/ -- Brown Gibbons Lang & Company (BGL), a leading independent investment bank and financial advisory firm, is pleased to announce the sale of Strategic Thermal Labs (STL), a specialist in advanced liquid-cooling technologies, to a wholly owned subsidiary of Vertiv Holdings Co. (NYSE: VRT), a global leader in critical digital infrastructure.

Brown Gibbons Lang & Company (BGL), a leading independent investment bank and financial advisory firm, is pleased to announce the sale of Strategic Thermal Labs (STL), a specialist in advanced liquid-cooling technologies, to a wholly owned subsidiary of Vertiv Holdings Co. (NYSE: VRT), a global leader in critical digital infrastructure. BGL's Digital Infrastructure investment banking team served as the exclusive financial advisor to Strategic Thermal Labs. Learn more here: https://www.bglco.com/industry-coverage/infrastructure-investment-banking/digital-infrastructure-investment-banking/

Headquartered in Georgetown, Texas, STL is a thermal engineering firm specializing in direct-to-chip liquid cooling, including the design and development of high-performance cold plate solutions. The company provides deep expertise and proven capability in addressing some of the industry's most demanding chip-level density and thermal challenges across data centers, high-performance computing, and AI-driven infrastructure.

Headquartered in Westerville, Ohio, Vertiv provides power, cooling, and IT infrastructure solutions and services that support critical applications across data centers, communication networks, and commercial and industrial environments.

Transaction Details

The acquisition extends Vertiv's thermal-chain strategy by strengthening engineering capability at the interface between server-side liquid cooling and supporting infrastructure—an increasingly critical factor in high-density, liquid-cooled environments supporting AI and high-performance computing workloads. The addition of Strategic Thermal Labs supports Vertiv's broader strategy of helping customers address increasing infrastructure complexity through integrated power, thermal, controls, and lifecycle services capabilities. Strategic Thermal Labs adds proven cold-plate design, server-side liquid cooling, and high-density thermal validation expertise and engineering capability that is expected to strengthen Vertiv's ability to simulate and emulate real high-density compute conditions, optimize the interaction between the thermal chain and power train, and support customers across design, integration, commissioning, and lifecycle operations. About BGL's Digital Infrastructure Investment Banking Team

BGL's Digital Infrastructure investment banking team helps clients both create and maximize value across various sectors, including broadband, wireless, data centers & managed services, towers & wireless infrastructure, and digital infrastructure services.

To learn more about BGL's recent transactions in digital infrastructure investment, visit our Transaction page.

About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company (BGL) is a leading independent investment bank and financial advisory firm focused on the global middle market. The firm advises private and public corporations and private equity groups on mergers and acquisitions, capital markets, financial restructurings, business valuations and opinions, and other strategic matters. BGL has offices in Boston, Chicago, Cleveland, Los Angeles, and New York. The firm is also a founding member of REACH Cross-Border Mergers & Acquisitions, enabling BGL to service clients in 30 countries around the world. Securities transactions are conducted through Brown, Gibbons, Lang & Company Securities, LLC, an affiliate of Brown Gibbons Lang & Company LLC and a registered broker-dealer and member of FINRA and SIPC. For more information, please visit www.bglco.com.

SOURCE Brown Gibbons Lang & Company

Artificial intelligence stocks often move on earnings reports, product launches, or analyst upgrades. Vertiv Holdings (NYSE: VRT | VRT Price Prediction) did none of those things on June 30, yet its shares climbed 9.1%, adding nearly $11 billion in market value in a single trading session. The catalyst originated more than 6,000 miles away in Seoul, where the South Korean government unveiled one of the world’s most ambitious semiconductor and AI infrastructure investment programs. That reaction illustrates how investors increasingly view AI infrastructure companies as global beneficiaries of AI investment, regardless of where those investments originate.

That’s an unusual way for an industrial company to gain nearly $11 billion in market value, but it says a great deal about how Wall Street now views AI infrastructure. Investors are increasingly reacting not just to company-specific news, but to any development that suggests the global AI buildout will continue accelerating.

That disconnect between where the news occurred and where investors directed their money explains much about how Wall Street is beginning to value the next phase of the AI infrastructure cycle. Increasingly, investors are reacting not simply to company-specific developments but to any indication that global AI spending will continue expanding. Vertiv has become one of the clearest beneficiaries of that trend because its products sit at the heart of virtually every modern AI data center.

The question investors now face is whether Vertiv has become the best way to invest in the global AI infrastructure buildout, or whether its shares have become a high-beta proxy for AI enthusiasm that could swing sharply whenever sentiment changes. That distinction may determine whether June 30 marks the start of another leg higher, or just another volatile day in one of the market’s fastest-growing infrastructure names.

The $576 Billion Catalyst: South Korea’s AI Ambition The news that ignited the rally came from South Korea, where President Lee Jae Myung announced a sweeping national initiative to strengthen the country’s leadership in semiconductors and artificial intelligence.

According to Table 1, South Korea’s announcement represents one of the largest government-supported AI infrastructure initiatives announced anywhere in the world. Although much of the investment will be directed toward semiconductor manufacturing, every new AI data center also requires extensive electrical distribution, power management, thermal management, and cooling infrastructure before computing hardware can be deployed. That is why investors immediately connected the announcement to companies such as Vertiv.

Vertiv was never mentioned during the announcement. It did not need to be. Every large AI data center requires electrical distribution equipment, power conversion systems, backup power, liquid cooling, thermal management, and monitoring software before a single AI accelerator is ever installed — regardless of whether the chips inside come from Nvidia, AMD, custom ASIC programs, or future architectures.

Markets make these connections long before company press releases do. Investors recognized immediately that a program of this magnitude would require far more than semiconductors—it would require the electrical and thermal infrastructure that allows AI data centers to operate.

Why Vertiv Wins Regardless of Which Chip Wins That reality increasingly explains why investors have begun viewing Vertiv as a direct beneficiary of global AI investment rather than merely another industrial equipment company. When governments or hyperscale cloud providers announce multi-billion-dollar AI infrastructure programs, investors immediately ask which companies will supply the essential systems that make those facilities operable — and Vertiv consistently appears near the top of that list.

The June 30 rally illustrates just how tightly Vertiv’s stock is now tied to AI infrastructure sentiment. The company issued no press release, offered no updated guidance, and announced no new customer wins. Investors simply interpreted Seoul’s announcement as fresh confirmation that global AI infrastructure spending remains in its early stages — a read that lines up with hyperscaler capex programs in the U.S., sovereign AI strategies across Europe, the Middle East, and Asia, and gradually rising enterprise adoption of generative AI workloads.

Unlike semiconductor manufacturers, whose growth depends partly on which AI accelerator wins market share, Vertiv benefits regardless of which computing platform customers choose. That broad exposure lets the company participate across the entire AI ecosystem rather than betting on a single chip architecture.

The Real Bottleneck: Power, Not Processors Management has been expanding Vertiv’s technological reach to address one of the industry’s fastest-growing challenges: delivering enough electrical power to increasingly dense AI computing environments. At Vertiv’s May 2026 Investor Conference, Chief Product and Technology Officer Scott Armul laid out just how quickly rack power requirements are escalating. According to Table 2, AI computing density is increasing at an extraordinary pace. Rack power requirements that only recently averaged approximately 140 kilowatts are already approaching 300 kilowatts, with 600-kilowatt systems under development and one-megawatt racks appearing on long-term technology roadmaps. This dramatic increase explains why electrical infrastructure and thermal management are becoming the primary constraints on future AI data center expansion.

That trajectory is reshaping data center design. Historically, attention centered on processors and networking gear. Today, electrical distribution, battery storage, cooling architecture, and grid integration increasingly determine whether an AI facility can be built and run efficiently at all — the bottleneck is shifting from compute hardware to the infrastructure needed to deliver that much reliable power.

Vertiv has responded with integrated products that combine medium-voltage switchgear, battery energy storage, and uninterruptible power systems into unified platforms built for multi-megawatt AI installations — designed not just as backup equipment, but to help AI campuses act as active participants within increasingly constrained electrical grids. Industry commentary increasingly backs this integration thesis: as rack densities rise, power management, liquid cooling, and thermal control stop being separate engineering disciplines and start being one interconnected system, favoring suppliers who can deliver the whole stack rather than individual components.

Vertiv’s Own Numbers: Growth With Visibility According to Table 3, Vertiv participates across nearly every major infrastructure layer required to operate a modern AI data center. Unlike semiconductor manufacturers, whose revenues depend partly on which AI accelerator customers adopt, Vertiv benefits regardless of the processor architecture because every AI installation requires reliable power delivery, thermal management, backup power, and increasingly sophisticated liquid-cooling systems.

Demand is supported by a substantial order backlog that gives Vertiv unusually strong revenue visibility for an industrial company. While many manufacturers rely on short-term orders that swing with economic conditions, Vertiv enters each quarter with a significant share of future revenue already committed by customers.

The confidence reflected in that backlog is also evident in Vertiv’s manufacturing expansion strategy. Earlier this year, the company opened a new manufacturing facility in Johor, Malaysia, its first in Southeast Asia. The facility will produce power systems, liquid-cooling equipment, and integrated infrastructure for customers across Southeast Asia, North Asia, Australia, and New Zealand. By adding manufacturing capacity well before AI infrastructure demand is expected to peak, management is signaling confidence that hyperscaler and sovereign AI investments will continue driving orders for years rather than quarters.

That confidence also shows up in capital allocation: earlier this year, Vertiv announced a new manufacturing facility in Johor, Malaysia, built to serve fast-growing demand across Southeast Asia, North Asia, Australia, and New Zealand. Expanding production capacity years ahead of anticipated demand peaks suggests management expects AI infrastructure investment to stay strong well beyond the current product cycle.

The Valuation Question: Bull Case vs. Bear Case According to Table 4, the investment debate surrounding Vertiv is straightforward. Supporters believe the company’s exceptional growth rate, expanding margins, and broad exposure to AI infrastructure justify a premium valuation. Skeptics counter that much of that future success has already been reflected in the share price, leaving little room for execution missteps should AI capital spending moderate.

The valuation debate is straightforward. Investors aren’t questioning whether Vertiv is benefiting from AI infrastructure spending—they’re debating how much of that future growth is already reflected in today’s share price.

What to Watch: Q2 Earnings The South Korean announcement demonstrated that AI infrastructure investment is no longer driven exclusively by U.S. hyperscale cloud providers. Governments increasingly treat artificial intelligence as strategic national infrastructure, requiring domestic investment in computing capacity, semiconductor manufacturing, and the electrical systems underneath it all. Every new sovereign AI initiative expands the addressable market for companies supplying that infrastructure — arguably more consequential for Vertiv’s long-term story than any single quarter.

The next real test arrives when Vertiv reports second-quarter results later this month. Investors will be watching revenue growth, order trends, operating margins, backlog conversion, and management’s outlook for the rest of 2026 — the figures that will determine whether the business keeps validating the optimism already priced into the stock.

Bottom Line June 30 answered one question while leaving another open. It confirmed that Wall Street increasingly views Vertiv as one of the purest publicly traded beneficiaries of the global AI infrastructure buildout. What’s still uncertain is whether the growth investors are now pricing in can continue long enough to justify the expectations already baked into the share price. In today’s market, sentiment can move a stock 9% in a matter of hours — sustained earnings growth is what determines whether those gains hold.

One additional factor investors should keep in mind is that AI infrastructure spending is becoming increasingly global rather than concentrated in a handful of U.S. technology companies. South Korea’s announcement illustrates how governments now view artificial intelligence as a strategic national asset requiring long-term investment in computing capacity, electrical infrastructure, and advanced semiconductor manufacturing. If similar initiatives continue to emerge in Europe, the Middle East, and other parts of Asia, companies such as Vertiv could benefit from multiple independent sources of demand rather than relying solely on the capital spending plans of a few hyperscale cloud providers. That broader geographic diversification could become an important driver of long-term growth, even as investors continue debating the company’s premium valuation.

Contact [email protected] for any questions or corrections.

While software providers and chipmakers grab the biggest headlines, the artificial intelligence (AI) revolution is fundamentally a hardware story. The massive computing clusters required for artificial intelligence cannot run without two critical elements: staggering amounts of electrical power and highly sophisticated cooling systems.

Industrial companies Vertiv (VRT +8.32%) and Eaton (ETN +3.79%) help provide the essential infrastructure that keeps these artificial intelligence-focused data centers running.

Image source: Getty Images.

Vertiv, based in Westerville, Ohio, produces power and thermal solutions for data centers, mainly direct-to-chip liquid cooling, and has recurring revenue from its global services network.

Eaton, based in Ireland, is a power management company that designs and manufactures heavy-duty electrical infrastructure, including transformers, switchgear, uninterruptible power supplies (UPS), and advanced liquid-cooling systems, essential for powering and protecting data centers, utility grids, and industrial facilities.

Here are three reasons why these two companies have compelling stocks to own right now:

1. Hyperscale backlogs are growing The massive capital expenditures committed by big tech hyperscalers are showing no signs of slowing, translating directly into a massive multiyear visibility window for both companies.

Vertiv, at the end of 2025, said its project backlog had skyrocketed to more than $15 billion, driven by a massive surge in data center orders. In the first quarter, Vertiv reported revenue of $2.65 billion, up 30% year over year, and earnings per share (EPS) of $0.99, up 136% over the same quarter a year ago. The company said it expects full-year revenue of $13.5 billion to $14 billion, compared with $10.2 billion in 2025. It also gave yearly EPS guidance of $6.30 to $6.40, up 87.6% from the same period last year.

Eaton is seeing a parallel boom with a backlog of $14.5 billion through Q1. The backlog grew by 48% in its electrical segment and by 28% in its aerospace segment in Q1.

Eaton is also seeing double-digit revenue growth. It set a Q1 record with $7.5 billion in revenue, up 17% year over year, while adjusted EPS rose 3% over the same period last year to $2.81.

Because building a data center takes years, these backlogs guarantee a long, highly visible revenue runway that insulates both companies from short-term tech market volatility.

2. Vertiv dominates the liquid cooling market Traditional data centers use air conditioning to stay cool. However, the next-generation chips powering AI generate intense heat densities that air alone cannot manage. The industry is rapidly pivoting to liquid cooling, and Vertiv is uniquely positioned to dominate this space.

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Vertiv has rapidly expanded its footprint, including opening high-capacity facilities, such as its new Johor, Malaysia site, to manufacture specialized liquid-cooling equipment, including its CoolChip coolant distribution units.

Through strategic partnerships with chip design leaders and tactical acquisitions such as its purchase of Strategic Thermal Labs, Vertiv provides end-to-end solutions from chip-level cold plates to facility-scale heat rejection, making it the absolute go-to partner for high-density AI clusters.

3. Eaton rules the in-demand gray space power market If Vertiv rules the thermal environment inside the server room (the white space), Eaton rules the massive electrical infrastructure that brings power from the utility grid into the building (the gray space). AI chips require immense amounts of power, and Eaton's technical moat is solving this bottleneck.

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Eaton provides heavy-duty transformers, switchgear, and uninterruptible power supply (UPS) systems to handle megawatt-class server racks.

Its next-generation 800-volt DC power distribution architecture streamlines power delivery directly to the server, eliminating multiple conversion steps and significantly reducing energy loss. Eaton's $9.5 billion acquisition in March of Boyd Performance Materials significantly expands its own advanced thermal capabilities, making it a more complete infrastructure powerhouse. The move is expected to be accretive to Eaton's adjusted EPS within two years, it said.

The pick-and-shovel plays are the safest ones in AI Chip architectures will evolve, and competing software models will come and go, but every single iteration of advanced AI will require massive power distribution and extreme heat management. Eaton and Vertiv effectively tax the entire ecosystem's growth, regardless of which tech giant wins the software race.

There are risks, however. Both stocks are now viewed as AI stocks, and with that come higher valuations and greater volatility.

Vertiv's shares have risen by more than 25% so far this year, and Eaton's are up an astronomically high 85%. With that, their price-to-earnings ratios (P/E) have climbed. Eaton trades at more than 38 times trailing earnings, while Vertiv trades at 75 times trailing earnings. That's a lot to live up to, and any type of AI slowdown could send either stock slumping.

Still, both companies are beneficiaries of rising AI spending, and that trend doesn't seem to be slowing down anytime soon.

Key Takeaways Vertiv's acquisitions added 4% to first-quarter 2026 revenues and broadened its data center offerings. VRT expects second-quarter 2026 revenues of $3.25B-$3.45B and 20-24% organic net sales growth. Vertiv faces stronger AI infrastructure competition from Super Micro Computer and Amphenol. Vertiv (VRT - Free Report) is benefiting from the strategic expansion of its portfolio through recent acquisitions, positioning the company for continued growth in the rapidly evolving data center infrastructure market. In the first quarter of 2026, acquisitions contributed 4% to revenues.

The company’s acquisitions, such as PurgeRite, ThermoKey, and BMarko Structures and Strategic Thermal Labs, are expected to strengthen Vertiv’s capabilities and market reach. The company recently announced the completion of its acquisition of ThermoKey S.p.A., a move that enhances Vertiv’s thermal management portfolio, expands its heat rejection and heat-exchange capabilities and strengthens its long-standing relationships with OEMs and system integrators serving data centers and other critical infrastructure markets worldwide.

The PurgeRite acquisition remains noteworthy. The acquisition is being scaled to deepen fluid management services, which management described as a technically demanding aspect of modern liquid-cooled deployments. In the first quarter of 2026, Vertiv completed the acquisition of BMarko, enhancing its structural fabrication specialization and expanding its engineering and manufacturing capacity. These moves broaden the company’s end-to-end offering and support a higher attach rate for services as the installed base grows.

The acquisitions are expected to contribute to Vertiv’s robust growth trajectory. For the second quarter of 2026, revenues are expected to be between $3.25 billion and $3.45 billion. Organic net sales are expected to increase in the 20-24% range.

VRT Suffers From Stiff CompetitionVertiv’s AI infrastructure solutions are facing increasing competition from Super Micro Computer (SMCI - Free Report) and Amphenol (APH - Free Report) . Both Super Micro Computer and Amphenol are expanding their offerings to support high-density, AI-driven data center deployments.

Super Micro Computer’s expanding portfolio has been noteworthy. The company recently expanded its AI infrastructure portfolio through collaborations with AMD, Arm, and NVIDIA, introducing new rack-scale platforms and data center blueprints designed to accelerate the deployment of large-scale agentic AI workloads.

Amphenol is benefiting from the surge in demand for AI infrastructure, which has become a transformative force for the company’s growth and market positioning. In the first quarter of 2026, IT datacom represented about 41% of sales and grew 81% organically year over year. This robust performance was driven by accelerating investments in AI data centers and the company’s ability to capture a significant share of this unique interconnect opportunity.

Vertiv’s Share Price Performance, Valuation, and EstimatesVRT’s shares have surged 89.5% in the year-to-date period compared with the broader Zacks Computer & Technology sector's rise of 12.9%. The Zacks Computers - IT Services industry declined 26.8% in the same time frame.

VRT Stock Performance
Image Source: Zacks Investment Research

Vertiv stock is trading at a premium, with a trailing 12-month Price/Book of 27.78X compared with the Computer and Technology sector’s 9.82X. VRT has a Value Score of D.

VRT's Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 earnings is pegged at $6.36 per share, which has increased 3.41% over the past 30 days. This indicates a 51.43% increase from the reported figure of 2025.

Vertiv currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.