Track market-moving stories before they get noisy

Vertiv (NYSE:VRT | VRT Price Prediction) reports third-quarter results on Oct. 28. Shares fell 21.89% over the past month to $194.31.

Vertiv Holdings Co. (VRT - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this company have returned -20.3% over the past month versus the Zacks S&P 500 composite's -1.2% change. The Zacks Computers - IT Services industry, to which Vertiv belongs, has gained 11.9% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Vertiv is expected to post earnings of $1.82 per share for the current quarter, representing a year-over-year change of +46.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.

For the current fiscal year, the consensus earnings estimate of $6.68 points to a change of +59.1% from the prior year. Over the last 30 days, this estimate has changed -0.1%.

For the next fiscal year, the consensus earnings estimate of $8.97 indicates a change of +34.3% from what Vertiv is expected to report a year ago. Over the past month, the estimate has changed +0.2%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Vertiv.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Vertiv, the consensus sales estimate for the current quarter of $3.76 billion indicates a year-over-year change of +40.4%. For the current and next fiscal years, $13.99 billion and $18.15 billion estimates indicate +36.8% and +29.7% changes, respectively.

Last Reported Results and Surprise HistoryVertiv reported revenues of $3.27 billion in the last reported quarter, representing a year-over-year change of +24.1%. EPS of $1.52 for the same period compares with $0.95 a year ago.

Compared to the Zacks Consensus Estimate of $3.39 billion, the reported revenues represent a surprise of -3.41%. The EPS surprise was +6.29%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Vertiv is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Vertiv. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

CMH Wealth Management LLC lessened its holdings in Vertiv Holdings Co. (NYSE:VRT – Free Report) by 19.7% during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 30,373 shares of the company’s stock after selling 7,452 shares during the quarter. CMH Wealth Management LLC’s holdings in Vertiv were worth $7,329,000 at the end of the most recent quarter.

A number of other institutional investors also recently bought and sold shares of the business. Precedent Wealth Partners LLC boosted its holdings in Vertiv by 6.3% in the third quarter. Precedent Wealth Partners LLC now owns 866 shares of the company’s stock valued at $209,000 after purchasing an additional 51 shares in the last quarter. SBI Securities Co. Ltd. increased its stake in Vertiv by 3.3% in the third quarter. SBI Securities Co. Ltd. now owns 17,091 shares of the company’s stock valued at $4,124,000 after purchasing an additional 542 shares during the last quarter. Aire Advisors LLC increased its stake in Vertiv by 3.7% in the third quarter. Aire Advisors LLC now owns 2,233 shares of the company’s stock valued at $539,000 after purchasing an additional 79 shares during the last quarter. Woodward Diversified Capital LLC raised its holdings in Vertiv by 6.3% during the third quarter. Woodward Diversified Capital LLC now owns 1,293 shares of the company’s stock worth $312,000 after purchasing an additional 77 shares in the last quarter. Finally, Crescent Grove Advisors LLC raised its holdings in Vertiv by 80.5% during the third quarter. Crescent Grove Advisors LLC now owns 2,051 shares of the company’s stock worth $495,000 after purchasing an additional 915 shares in the last quarter. 89.92% of the stock is owned by hedge funds and other institutional investors.

Vertiv Trading Down 8.0% NYSE:VRT opened at $195.19 on Friday. The firm has a market cap of $75.14 billion, a P/E ratio of 44.16, a PEG ratio of 0.79 and a beta of 2.05. 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 stock’s 50 day simple moving average is $249.47 and its 200-day simple moving average is $287.61. Vertiv Holdings Co. has a 12-month low of $147.82 and a 12-month high of $379.93.

Vertiv (NYSE:VRT – Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $1.52 earnings per share for the quarter, topping the consensus estimate of $1.43 by $0.09. Vertiv had a return on equity of 50.47% and a net margin of 15.09%. The firm had revenue of $3.27 billion during the quarter, compared to the consensus estimate of $3.38 billion. During the same period last year, the company earned $0.95 earnings per share. The company’s revenue for the quarter was up 24.1% on a year-over-year basis. Vertiv has set its Q3 2026 guidance at 1.770-1.830 EPS and its FY 2026 guidance at 6.650-6.750 EPS. Equities analysts anticipate that Vertiv Holdings Co. will post 6.71 EPS for the current year. Vertiv Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Monday, September 14th were given a dividend of $0.0625 per share. The ex-dividend date was Monday, September 14th. This represents a $0.25 dividend on an annualized basis and a yield of 0.1%. Vertiv’s dividend payout ratio is presently 5.66%.

Analyst Upgrades and Downgrades VRT has been the subject of several recent analyst reports. KeyCorp reduced their price objective on shares of Vertiv from $360.00 to $325.00 and set an “overweight” rating for the company in a research report on Thursday, July 30th. TD Cowen dropped their target price on shares of Vertiv from $387.00 to $356.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Citigroup cut their price target on shares of Vertiv from $414.00 to $358.00 and set a “buy” rating on the stock in a research note on Thursday, July 30th. Glj Research began coverage on shares of Vertiv in a research note on Tuesday, October 6th. They set a “sell” rating and a $188.00 price target on the stock. Finally, Wall Street Zen cut shares of Vertiv from a “buy” rating to a “hold” rating in a research report on Saturday, October 17th. Two analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Vertiv has a consensus rating of “Moderate Buy” and a consensus target price of $335.67.

Get Our Latest Stock Report on VRT

Insider Buying and Selling In other news, Director Edward Monser sold 15,287 shares of the firm’s stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $253.82, for a total value of $3,880,146.34. Following the completion of the sale, the director owned 16,500 shares in the company, valued at approximately $4,188,030. This trade represents a 48.09% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.10% of the company’s stock.

Vertiv News Summary Here are the key news stories impacting Vertiv this week:

Positive Sentiment: Faster AI-factory deployment: Vertiv and NVIDIA introduced an approach using pre-engineered designs, virtual validation and factory-built infrastructure. The companies are targeting deployment cycles as short as 10–14 weeks—or 14 days for certain modular configurations—and up to 30% more cumulative AI-token output during the first year with the same installed capacity. Vertiv and NVIDIA AI factory announcement Positive Sentiment: Dassault Systèmes collaboration: Vertiv will combine its power and cooling expertise with Dassault Systèmes’ 3DEXPERIENCE platform to configure, simulate and validate AI factories before construction. The initiative could reduce field complexity and accelerate customer deployments. Dassault Systèmes and Vertiv collaboration Positive Sentiment: Potential earnings support: Analysts expect Vertiv’s earnings to grow ahead of next week’s quarterly report, with coverage highlighting the possibility of an earnings beat. The company also has strong interest coverage, which may help mitigate concerns about higher borrowing costs. Vertiv earnings outlook Neutral Sentiment: Elevated options activity: Investors traded 41,401 put options, about 29% above typical volume. The activity signals increased hedging or bearish speculation but does not by itself confirm a change in fundamentals. Negative Sentiment: AI spending-financing concerns: Investors questioned how major hyperscaler spending plans will be financed, pressuring power-equipment suppliers including Vertiv, GE Vernova and Eaton. This suggests concern that customers could delay or moderate orders despite strong long-term AI demand. AI spending and financing concerns Negative Sentiment: Valuation and target-price pressure: After the prior AI-factory announcement lifted the stock, Mizuho lowered its price target from $300 to $280. The pullback reflects skepticism that the long-term opportunity is fully translating into near-term earnings, particularly while Vertiv trades at a high earnings multiple. Mizuho Vertiv price-target reduction Vertiv Profile (Free Report)

Vertiv Holdings Co (NYSE: VRT) designs, manufactures and services critical digital infrastructure that supports data centers, communication networks and other facilities requiring reliable power and environmental control. Its solutions are used by cloud and colocation providers, telecommunications companies, enterprises, industrial organizations and edge-computing operators.

The company’s offerings include uninterruptible power supplies, power distribution and management systems, thermal-management and cooling equipment, integrated racks and enclosures, modular infrastructure, and monitoring and control software.

Read More Five stocks we like better than Vertiv Is Texas Instruments Setting Up for Its Next Big Breakout? Pegasystems’ Q3 Miss Exposed the Problem Standing Between AI and Cash Flow Lam Research’s Earnings Beat Wasn’t the Real Story—Its 2027 Outlook Was Tesla’s Flying-Car Hype Hits an Earnings Reality Check Want to see what other hedge funds are holding VRT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Vertiv Holdings Co. (NYSE:VRT – Free Report).

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Meta's latest earnings call left a key question unanswered about how the next wave of AI infrastructure gets paid for, and power-equipment suppliers are taking the hit while investors wait for an answer.

A larger AI spending outlook from Meta Platforms (NASDAQ:META | META Price Prediction) has raised the question of how the expansion gets financed, and the power-equipment suppliers counting on those orders are absorbing the damage. GE Vernova (NYSE:GEV) stock is down 11% to $826.01 in afternoon trading, a drop that reflects how heavily the market ties the company to large power-generation orders. Hyperscaler demand for gas turbines and grid equipment had made the company a primary beneficiary of the data center expansion.

Checking in on the peers, Vertiv Holdings (NYSE:VRT) stock is down 7% to $196.42, a smaller decline than the drop in GE Vernova stock for a supplier directly leveraged to hyperscaler spending. Eaton (NYSE:ETN) stock is down 6% to $369.80, representing the smallest slide of the three. Each company plays a distinct role. GE Vernova makes gas and wind turbines plus grid equipment for utilities and data center developers, while Vertiv Holdings sells power and cooling gear installed inside those facilities and Eaton supplies electrical distribution equipment.

Grid-equipment stocks as a group are falling too, with the First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (NASDAQ:GRID) down 4%. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 1.43%, leaving the power-equipment corner well behind the broad market.

Meta’s AI Spending Outlook Reopens the Financing Question
Results from Meta Platforms on October 21 topped revenue expectations, yet the company also raised its AI spending outlook and indicated aggressive investment continuing beyond 2026. Heavy outlays on servers, data centers and network infrastructure left Meta Platforms with negative free cash flow for the quarter, even as its core advertising business kept growing. That combination renewed questions about how AI capacity will be financed.

Meta Platforms Chief Financial Officer Susan Li addressed funding on the earnings call, describing a new class of non-voting shares created partly for capital raising. “We don’t have any specific financing plans to announce at this time, but we thought it was prudent to establish the appropriate capital structure framework to ensure that we have access to a diverse pool of funding sources,”. Li stated. This open funding question is landing hardest on GE Vernova stock.

GE Vernova Takes the Hardest Hit
GE Vernova entered the selloff with strong order momentum, posting a backlog of $176 billion in its Q2 2026 results. By that report, the company’s data center orders had topped $5 billion year to date, more than double its 2025 total, and it signed 20 gigawatts of new gas contracts in the quarter.

Risk sits in the size and timing of those orders. Gas turbines and grid equipment are large, long-lead purchases, so any slowdown in hyperscaler financing could ripple into GE Vernova’s next wave of power-generation contracts.

Vertiv sits closest to the server hall. It sells gear that moves with each new data center phase (we covered seven power, cooling, and grid suppliers riding this expansion in a free AI infrastructure report). Its direct link lifts demand during a expansion and sharpens the downside whenever hyperscaler budgets face scrutiny. Eaton serves utilities, commercial buildings and aerospace customers alongside data centers, which remain a key growth driver for its electrical businesses, though that reliance leaves Eaton exposed if hyperscalers slow spending.

First Trust’s grid fund holds Eaton at 8.5% of net assets and GE Vernova at 1.1% as of June 30. It excludes Vertiv, so much more of its direction rides on Eaton.

GE Vernova’s Third-Quarter Report Sets the Next Test
GE Vernova’s third-quarter 2026 report, due soon, could show whether its order backlog holds up as AI spenders weigh financing costs. An open variable for the broader power-equipment trade is how quickly hyperscalers finalize next year’s budgets. Li framed the Meta Platforms timeline plainly: “We are quite early in developing our budget and capacity plans for next year.”

Investors’ holdings should be calibrated carefully given how tightly these three stocks track hyperscaler budgets. Keeping positions sized so no single spending revision dominates a portfolio matters more than guessing whether the selloff will persist.

Contact [email protected] for any questions or corrections.

BERLIN--(BUSINESS WIRE)-- #3DEXPERIENCE--Dassault Systèmes (Euronext Paris: FR0014003TT8, DSY.PA) and Vertiv Holdings Co. (NYSE: VRT) today announced a collaboration to enable AI factory infrastructure to be configured, simulated and validated before construction begins. By combining Dassault Systèmes' 3DEXPERIENCE agentic platform with Vertiv's critical digital infrastructure expertise, the companies aim to reduce field complexity and accelerate the path from design kickoff to productive AI capacity for NVIDI.

Pre-engineered reference designs enable configuration and validation up to 10x faster, combined with factory-built infrastructure for faster deployment, integrated with Dassault Systèmes' 3DEXPERIENCE agentic platform

, /PRNewswire/ -- At NVIDIA GTC Berlin, Vertiv Holdings Co. (NYSE: VRT) and NVIDIA today introduced an AI factory approach that combines rapid configuration and virtual validation of pre-engineered reference architectures with factory-built deployment. The approach is designed to move AI factories from project kickoff to productive capacity faster and, under defined assumptions, generate up to 30% more cumulative token output within the first 12 months with the same installed capacity1. Polar Data Centers is applying the factory-built deployment approach to the first 41 MW phase of its multiphase AI data center at Herøya, Norway.

For AI factory operators, securing compute is only part of the challenge. Traditional infrastructure development can require power, cooling and facility systems to be engineered and integrated through separate, sequential processes, creating complexity and potential delays. The Vertiv and NVIDIA approach starts instead with pre-engineered AI factory reference architectures that can be rapidly configured to customer and site requirements, virtually validated before deployment, then translated into factory-built infrastructure.

Configure and Validate: Up to 10x Faster with Pre-Engineered Reference Designs2
Teams can start with pre-engineered AI factory reference designs and rapidly configure them for specific compute, power, cooling and facility requirements in a shared virtual environment. The approach combines the NVIDIA Vera Rubin DSX AI Factory reference design and NVIDIA Omniverse DSX Blueprint, with Vertiv SimReady power and cooling assets, integrated with Dassault Systèmes' 3DEXPERIENCE agentic platform.

Rather than developing an integrated infrastructure design from scratch, teams can configure and virtually validate proven reference designs against project requirements, interfaces and constraints. In the modeled scenario, this reduces the time from requirements to a configured and validated AI factory solution from approximately 30 days to three days, a 10x improvement.

Vertiv is also contributing SimReady OpenUSD assets of its power and cooling equipment to SimReady Central Library on Hugging Face. The library helps engineering teams discover and reuse validated equipment assets in AI factory digital twins, reducing asset preparation and helping teams evaluate infrastructure options during design.

Deploy: Up to 50% Faster with Factory-Built Infrastructure3
Once the AI factory configuration is validated, Vertiv prefabricated solutions shift more assembly, integration and testing into the factory before equipment reaches the site. These solutions include Vertiv™ OneCore, a hybrid-built data center solution that integrates critical power, thermal management and supporting infrastructure, and Vertiv™ SmartRun, a prefabricated overhead infrastructure system for high-density power distribution, liquid cooling, networking and containment.

By moving more infrastructure work off-site, teams can reduce field complexity and on-site integration requirements. In the modeled scenario, the factory-built approach reduces the infrastructure deployment period from approximately 90 days to 45 days, a reduction of up to 50%.

Combined with the faster configuration and validation enabled by pre-engineered reference designs, the modeled approach reduces these stages from approximately 120 days to 48 days. That can make productive AI capacity available about 10 weeks sooner, generating up to 30% more cumulative token output within 12 months of project kickoff with the same installed capacity.

Field Deployment: Polar Data Centers at Herøya, Norway
At its Herøya campus in Norway, Polar is using Vertiv's factory-built deployment model for the first 41 MW phase of its multiphase AI data center, scalable to 100 MW. By shifting more infrastructure assembly, integration and testing into the factory before equipment reaches the site, the deployment model is designed to reduce on-site complexity and help make high-density, liquid-cooled capacity available to customers sooner. Vertiv is supplying prefabricated power and thermal modules, Vertiv™ SmartRun overhead infrastructure and Vertiv™ SmartMod, supported by Vertiv™ Unify software.

"An AI factory earns its return in tokens, and every day spent configuring infrastructure or integrating it on site is output that never comes back," said Giordano Albertazzi, CEO of Vertiv. "Success depends on how quickly operators can move from requirements to productive AI capacity. By starting with pre-engineered reference designs that can be rapidly configured and validated, then extending that approach through factory-built deployment, we help customers reduce complexity, deploy infrastructure faster and bring AI capacity online sooner. Polar Data Centers is demonstrating how that approach can be applied at scale in a real-world AI factory deployment."

"AI factories must be designed as one system, and the NVIDIA Vera Rubin DSX AI Factory reference design helps teams align compute, power and cooling requirements from the outset," said Vladimir Troy, Vice President of AI Infrastructure at NVIDIA. "With the NVIDIA Omniverse DSX Blueprint, companies such as Vertiv and Dassault Systèmes can simulate these systems together and carry an integrated design into physical deployment, helping operators resolve conflicts earlier and bring productive AI capacity online sooner."

"With Vertiv and NVIDIA, we're accelerating AI factory design and deployment by engineering the factory as one system – compute, networking, power and cooling co-designed and co-simulated in a virtual twin," said Stéphane Sireau, Vice President, High-Tech Industry, at Dassault Systèmes. "Integration issues get resolved before construction, not on site, helping bring token-producing capacity online sooner."

"Our customers measure us on how quickly capacity is ready for them," said Andy Hayes, CEO of Polar Data Centers. "At Herøya, Vertiv's factory-built infrastructure helps us manage the complexity of deploying power, cooling and white-space systems for high-density computing. It gives us a more disciplined, repeatable deployment model while preserving the flexibility to meet the requirements of our customers."

Vertiv and NVIDIA plan to demonstrate elements of the approach at NVIDIA GTC Berlin, including how facility requirements inform infrastructure configuration, how teams can virtually validate power and cooling requirements, and how Vertiv applies factory-built infrastructure to accelerate physical deployment. The demonstration will feature technology from Dassault Systèmes, and Polar Data Centers will show how the deployment approach is being applied in a real-world AI factory.

Visitors can learn more at the Vertiv booth (#3055), and Scott Armul, Chief Product and Technology Officer at Vertiv, will present Building the AI Factory: Converting Megawatts into Intelligence during a sponsored expo-theater session on Oct. 22, 2026, from 4:00 to 4:15 p.m. CEST.

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

1:

Modeled. First 12 months measured from design kickoff: 317 vs. 245 productive days at equal installed capacity (3 + 45 vs. 30 + 90 days). Actual results will vary.

2:

Modeled. Time to an initial integrated design, configured and validated in the digital twin: 3 days vs. a 30-day conventional design process. Results vary by project.

3:

Modeled. On-site power and cooling deployment with Vertiv factory-built infrastructure: 45 days vs. a 90-day conventional on-site baseline. Results vary by project.

About Vertiv Holdings Co.
Vertiv Holdings Co. (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.

About Polar Data Centers
Polar develops and operates high-performance data centers optimised for AI and high-density computing workloads. The company is building a growing European platform of AI-ready infrastructure, combining renewable power, resilient design, high-density cooling capability, and a customer-led approach to development and operations.

About Dassault Systèmes
Dassault Systèmes is a catalyst for human progress. Since 1981, the company has pioneered virtual worlds to improve real life for consumers, patients and citizens. Through the 3DEXPERIENCE platform, AI-powered, science-based virtual twins help 390,000 customers of all sizes, in all industries, collaborate, imagine and create sustainable innovations that drive meaningful impact. For more information, visit: www.3ds.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.

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

SOURCE Vertiv Holdings Co

Vertiv (VRT -0.30%), a provider of thermal management, liquid cooling, and uninterruptible power supply (UPS) systems for data centers, attracted a stampede of bulls in the first half of 2026 as the AI market's growth boosted its sales and margins. Its stock closed at a record high of $376.06 per share on May 14, marking a 2,390% gain over its previous three years.

But today, Vertiv's stock trades at about $211. Let's see why it pulled back, and whether it will recover and set fresh highs over the next 12 months.

Image source: Getty Images.

How fast is Vertiv growing? The AI market's rapid expansion is driving more data centers to upgrade their servers with Nvidia's (NVDA +1.54%) latest GPUs and other AI chips. However, those new chips consume so much power and generate so much heat that data centers must upgrade their infrastructure with Vertiv's cooling products and UPS systems to operate safely and efficiently.

From 2021 to 2025, Vertiv's revenue more than doubled from $5.0 billion to $10.2 billion, while its adjusted EPS rose more than fivefold from $0.76 to $4.20. Its backlog reached $15 billion at the end of the second quarter of 2026.

For 2026, Vertiv expects its revenue to rise 37% (31% organically) to $14 billion, and for its adjusted EPS to grow 60%. It trades at 31 times that earnings estimate.

VRT Vertiv$205.81-$0.61 (-0.30%)

NYSE · As of 2:36 PM ET 10/19/26

Why did Vertiv's stock pull back? Three challenges weighed down Vertiv's stock over the past five months. First, it slightly missed Wall Street's aggressive top-line estimates for the second quarter, due to the lumpy timing of its larger contracts and supply chain constraints.

Second, Vertiv agreed to acquire UtilityInnovation Group -- a developer of microgrid solutions, advanced power controls, and behind-the-meter power architecture designs for data centers -- for $1.45 billion in cash in February. The integration of that deal, expected to close in the fourth quarter, could affect its near-term margins. Lastly, rising interest rates broadly compressed the valuations of higher-growth AI stocks.

Analysts expect Vertiv's adjusted EPS to grow 60% in 2026 and 36% in 2027. If it matches those expectations and still trades at 30 times its current year's earnings by next October, its stock could rally about 30% to $276 per share over the next 12 months.

That would fall short of its all-time high, but it could still head much higher over the next few years as the data center market expands. Therefore, its recent pullback could be a great buying opportunity for investors seeking exposure to the AI infrastructure market.

AI is driving a gold rush in data centers and power generation, but not every company collecting on that boom is getting paid on the same schedule. Four stocks are riding the wave at very different stages of the race.

Artificial intelligence is driving up demand for two scarce resources simultaneously: data center capacity and the electricity to run them. The Department of Energy projects that data centers will account for up to 12% of U.S. electrical demand by 2028. This update to an earlier look at the AI data center race brings in three new companies that are earning from AI today. One pre-revenue developer stays on the list as the company is still waiting to get paid.

All four companies are riding the same trend, but they will see the money on different schedules. Each one is scored on five measures:

AI and data center revenue today Backlog and booking momentum Margins Strength of guidance Execution and financing risk That developer comes in fourth because it has no revenue yet. The three companies already earning follow in ranked order.

4. Fermi: Contracts Signed, Revenue Still Years Away Fermi (NASDAQ:FRMI) has no revenue yet. It is building Project Matador, a power campus in Carson County, Texas. In Q2 FY26, it reported a GAAP net loss of $25.81 million ($0.04 per share), compared with $6.29 million a year earlier. It ended the quarter with $91.7 million in cash. A July convertible note offering brought in $416.8 million in net proceeds.

Its signed contract, a 15-year lease with the AI cloud provider TensorWave, covers 222 MW and about $6.5 billion in contracted revenue. Phased delivery begins in late 2027. On October 13, Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) agreed to provide credit support for that lease, meaning it will help back the tenant’s obligations. Fermi called the deal a milestone toward project financing. The lease still has to close by October 31, 2026. Shares trade at $3.16, down 64.2% year to date.

3. Constellation Energy: Nuclear Power Backed by Long Contracts Constellation Energy (NASDAQ:CEG) represents the power producers. In Q2 FY26, adjusted EPS of $2.55 beat the $2.33 consensus. Revenue of $7.50 billion missed expectations but still grew 23% year over year. Operating income fell 39.01% to $580 million, the weakest margin result of the three companies. Its nuclear plants ran at a 93% capacity factor, which measures actual output against maximum possible output.

Guidance is Constellation’s strongest point. Management raised its FY26 forecast for adjusted operating earnings to $11.50 to $12.50 per share. Constellation signed 920 MW of nuclear power purchase agreements with investment-grade customers. These agreements run 15 to 20 years, with start dates from 2029 to 2032. Because that contracted revenue starts years from now, Constellation ranks third. At $271.37, the stock trades at about 23x the midpoint of its guidance and is down 25.9% year to date.

2. Digital Realty: Record Leasing Drives Cash Flow Digital Realty Trust (NYSE:DLR) is the data center landlord, structured as a real estate investment trust (REIT). REITs are best judged on funds from operations (FFO), which is net income with property depreciation added back. That gives a clearer view of cash flow. In Q1 FY26, core FFO rose 15% year over year to $2.04 a share, and $1.64 billion revenue beat estimates.

New leases signed in the quarter, known as bookings, set a record at $707 million in annualized base rent. The quarter was driven by a 200 MW AI inference lease, the largest hyperscale deal in the company’s history. About 1.2 GW of capacity is under construction. Management raised FY26 core FFO guidance to $8.00 to $8.10 per share. Financing is a concern: Digital Realty sold 7.3 million new shares for about $1.3 billion, diluting existing holders. Shares trade at about 21x the midpoint of FFO guidance.

1. Vertiv: Power and Cooling Orders Are Turning Into Cash Vertiv (NYSE:VRT) makes power and cooling equipment for data centers, and it ranks first overall. In Q2 FY26, revenue rose 24.1% to $3.27 billion and adjusted EPS reached $1.52. Adjusted operating margin expanded 410 bps to 22.6%. Free cash flow rose 234% to $925.3 million.

Management raised its FY26 guidance to sales of $13.80 billion to $14.20 billion and adjusted EPS of $6.65 to $6.75. It also pointed to strong backlog coverage: “We expect another year of robust orders growth.” Some revenue slipped into the second half because large projects are being built in multiple phases, and EMEA sales grew just 1.7%. The stock trades at about 31x the midpoint of EPS guidance.

What to Watch in Each Upcoming Report Scoring all four companies on the same five measures produced a clear ranking order. Vertiv leads on cash flow and margins. Digital Realty leads on bookings. Constellation’s contracts pay out further in the future.

Fermi still has to prove it can deliver. (For readers tracking the wider expansion, we highlighted seven companies providing the power, cooling, and networking behind AI data centers in a free report you can grab here.)

Vertiv, October 28, 2026, before market: Q3 sales against the $3.65 billion to $3.85 billion guidance, plus how quickly backlog is turning into revenue. Digital Realty, October 29, 2026, after market: core FFO per share and booking volume. Constellation, November 9, 2026: revenue against estimates and whether management reaffirms guidance. Fermi, November 12, 2026, before market: whether the lease closed, progress on project financing, cash on hand, and the target of about 200 MW of initial power within 6 months. Contact [email protected] for any questions or corrections.

In the latest close session, Vertiv Holdings Co. (VRT - Free Report) was down 6.09% at $222.83. This change lagged the S&P 500's 1.11% loss on the day. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 1.88%.

Prior to today's trading, shares of the company had gained 1.14% lagged the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.06%.

Analysts and investors alike will be keeping a close eye on the performance of Vertiv Holdings Co. in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.83, signifying a 47.58% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.77 billion, indicating a 40.92% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.69 per share and a revenue of $14.01 billion, indicating changes of +59.29% and +36.91%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Vertiv Holdings Co. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. Vertiv Holdings Co. is currently a Zacks Rank #3 (Hold).

Digging into valuation, Vertiv Holdings Co. currently has a Forward P/E ratio of 35.46. This signifies a premium in comparison to the average Forward P/E of 14.13 for its industry.

We can additionally observe that VRT currently boasts a PEG ratio of 0.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Computers - IT Services industry stood at 1.33 at the close of the market yesterday.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

, /PRNewswire/ -- Vertiv Holdings Co. (NYSE: VRT), a global leader in critical digital infrastructure, today announced it will report its third quarter 2026 results before market open on Wednesday, October 28, 2026. The press release will contain a link to the presentation materials providing a third quarter 2026 update, which will be available on Vertiv's website at investors.vertiv.com. Vertiv's management team will discuss the results during a conference call the same day, starting at 11 a.m. Eastern Time.

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

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

For media inquiries, please contact:
Tom Laughran
FleishmanHillard
E: [email protected]

SOURCE Vertiv Holdings Co

Perpetual Ltd increased its stake in Vertiv Holdings Co. (NYSE:VRT – Free Report) by 6,110.5% during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 114,397 shares of the company’s stock after purchasing an additional 112,555 shares during the period. Perpetual Ltd’s holdings in Vertiv were worth $27,605,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also bought and sold shares of VRT. SFE Investment Counsel grew its stake in Vertiv by 1.1% in the 1st quarter. SFE Investment Counsel now owns 3,052 shares of the company’s stock worth $765,000 after buying an additional 32 shares in the last quarter. Versant Capital Management Inc increased its holdings in shares of Vertiv by 3.0% in the 2nd quarter. Versant Capital Management Inc now owns 1,156 shares of the company’s stock worth $387,000 after buying an additional 34 shares during the last quarter. Webster Bank N. A. raised its position in shares of Vertiv by 6.9% during the 1st quarter. Webster Bank N. A. now owns 542 shares of the company’s stock valued at $136,000 after buying an additional 35 shares in the last quarter. Sachetta LLC raised its position in shares of Vertiv by 41.4% during the 1st quarter. Sachetta LLC now owns 123 shares of the company’s stock valued at $31,000 after buying an additional 36 shares in the last quarter. Finally, Pincus Capital Management LP raised its position in shares of Vertiv by 0.8% during the 1st quarter. Pincus Capital Management LP now owns 4,713 shares of the company’s stock valued at $1,181,000 after buying an additional 38 shares in the last quarter. 89.92% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets In other Vertiv news, Director Edward Monser sold 15,287 shares of the company’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $253.82, for a total transaction of $3,880,146.34. Following the completion of the sale, the director directly owned 16,500 shares in the company, valued at $4,188,030. This represents a 48.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.10% of the stock is owned by corporate insiders.

Vertiv Stock Down 1.4% Shares of NYSE VRT opened at $239.48 on Tuesday. Vertiv Holdings Co. has a one year low of $147.82 and a one year high of $379.93. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.38 and a quick ratio of 1.03. The firm’s 50 day simple moving average is $260.02 and its two-hundred day simple moving average is $290.07. The stock has a market capitalization of $92.20 billion, a P/E ratio of 54.18, a PEG ratio of 0.90 and a beta of 2.05. Vertiv (NYSE:VRT – Get Free Report) last posted its quarterly 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. Vertiv had a net margin of 15.09% and a return on equity of 50.47%. The firm had revenue of $3.27 billion for the quarter, compared to the consensus estimate of $3.38 billion. During the same period last year, the firm posted $0.95 earnings per share. The business’s revenue was up 24.1% compared to the same quarter last year. 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, analysts expect that Vertiv Holdings Co. will post 6.73 EPS for the current fiscal year.

Vertiv Announces Dividend The firm also recently declared a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Monday, September 14th were paid a $0.0625 dividend. The ex-dividend date of this dividend was Monday, September 14th. This represents a $0.25 annualized dividend and a yield of 0.1%. Vertiv’s payout ratio is currently 5.66%.

Analyst Ratings Changes A number of research firms have recently issued reports on VRT. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Vertiv in a report on Monday, September 28th. Mizuho reduced their target price on Vertiv from $380.00 to $300.00 and set an “outperform” rating on the stock in a research note on Thursday, July 30th. Robert W. Baird set a $320.00 price target on Vertiv and gave the company an “outperform” rating in a research report on Thursday, July 30th. The Goldman Sachs Group lowered their price target on Vertiv from $352.00 to $301.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Finally, KeyCorp dropped their price target on Vertiv from $360.00 to $325.00 and set an “overweight” rating for the company in a research note on Thursday, July 30th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $337.67.

Get Our Latest Report on Vertiv

Vertiv Profile (Free Report)

Vertiv Holdings Co provides digital infrastructure and continuity solutions for data centers, communication networks, and other technology-intensive facilities. The company helps customers design, build, operate, and maintain infrastructure that supports the availability, performance, and efficiency of critical digital systems.

Its product portfolio includes power management and distribution equipment, uninterruptible power supplies, switchgear, busways, racks, integrated modular systems, and data center infrastructure.

See Also Five stocks we like better than Vertiv Salesforce Just Got a Rare Double Upgrade—What Changed? OpenAI’s Revenue Scare Could Be a Big Opportunity for Investors China Still Dominates Rare Earths—These 3 U.S. Companies Could Benefit 3 REITs That May Win in a Higher Interest Rate Environment

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Vertiv Holdings Co. (VRT - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this company have returned -5.6%, compared to the Zacks S&P 500 composite's +2.4% change. During this period, the Zacks Computers - IT Services industry, which Vertiv falls in, has gained 2.6%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Vertiv is expected to post earnings of $1.83 per share for the current quarter, representing a year-over-year change of +47.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0%.

The consensus earnings estimate of $6.69 for the current fiscal year indicates a year-over-year change of +59.3%. This estimate has changed +0.1% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $8.93 indicates a change of +33.4% from what Vertiv is expected to report a year ago. Over the past month, the estimate has changed -0.3%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Vertiv is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Vertiv, the consensus sales estimate of $3.77 billion for the current quarter points to a year-over-year change of +40.9%. The $14.01 billion and $18.1 billion estimates for the current and next fiscal years indicate changes of +36.9% and +29.2%, respectively.

Last Reported Results and Surprise HistoryVertiv reported revenues of $3.27 billion in the last reported quarter, representing a year-over-year change of +24.1%. EPS of $1.52 for the same period compares with $0.95 a year ago.

Compared to the Zacks Consensus Estimate of $3.39 billion, the reported revenues represent a surprise of -3.41%. The EPS surprise was +6.29%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Vertiv is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Vertiv. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Vertiv Holdings Co. (VRT - Free Report) closed at $245.85 in the latest trading session, marking a -2.88% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.22%. Elsewhere, the Dow lost 0.66%, while the tech-heavy Nasdaq lost 0.22%.

Shares of the company have depreciated by 12.96% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.54%, and the S&P 500's gain of 1.4%.

The investment community will be closely monitoring the performance of Vertiv Holdings Co. in its forthcoming earnings report. The company is forecasted to report an EPS of $1.83, showcasing a 47.58% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $3.77 billion, up 40.92% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.69 per share and revenue of $14.01 billion, which would represent changes of +59.29% and +36.91%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Vertiv Holdings Co. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% higher. Vertiv Holdings Co. is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Vertiv Holdings Co. currently has a Forward P/E ratio of 37.82. This represents a premium compared to its industry average Forward P/E of 13.18.

It is also worth noting that VRT currently has a PEG ratio of 0.95. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computers - IT Services industry currently had an average PEG ratio of 1.31 as of yesterday's close.

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 75, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Nvidia's (NVDA +2.12%) graphics processing units (GPUs) have become the foundational AI hardware for data centers, while Palantir has been one of the strongest purveyors of artificial intelligence software as a service. However, as investments with potential to grow from here, both companies may pale in comparison to liquid cooling specialist Vertiv (VRT +0.57%).

Image source: Getty Images.

Liquid cooling has become a requirement for AI infrastructure Liquid cooling has become essential to AI data centers. 

Cutting-edge AI chips and infrastructure generate enormous amounts of heat when they operate, and fans and air conditioners can't cool them quickly enough. Without liquid cooling systems of the type that Vertiv provides, the chips can reach temperatures that slow their processing significantly, reduce their lifespans, or even render them unusable.

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Because of this, the technology that Vertiv sells has become just as important for the AI build-out as the processors it protects. This positioning translated into 24% year-over-year revenue growth in the second quarter, and management's full-year guidance is for 31% revenue growth, implying that growth will accelerate.

Vertiv's operating profits jumped 44% year over year to $638 million in Q2, indicating a sustainable business model. CEO Giordano Albertazzi expressed confidence that the company could maintain its strong performances in 2026 and beyond as AI demand heats up.

A leading competitive positioning comes with a reasonable price tag Vertiv has established itself as the clear leader in liquid cooling for AI data centers. While other companies also offer this service, Vertiv has gone all-in with this technology, and it has inked a partnership with Nvidia. Vertiv's 800 VDC power portfolio, specifically designed to support the Rubin Ultra platform that Nvidia will roll out in 2027, is expected to come out by the end of the year. Companies looking to use the latest Nvidia technology will need to upgrade their Vertiv infrastructure components.

Management mentioned in Vertiv's Q2 presentation that the company has a strong backlog for the second half, and pipeline momentum points to another strong year overall. While the North American region is still hot, Vertiv is also expanding across the Asia Pacific region to pursue additional growth opportunities.

This investment thesis comes with an attractive valuation for patient shareholders. Vertiv trades at a 1-year forward P/E ratio of 28, down from a peak of 41 this summer after a prolonged correction. The stock also trades at a five-year PEG ratio of 0.84; a positive PEG ratio below 1 is typically viewed as indicating that a stock is undervalued.

Vertiv's growth engine doesn't appear likely to slow down anytime soon. With long-term catalysts for the liquid cooling market, its valuation should improve over time.

Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia, Palantir Technologies, and Vertiv. The Motley Fool has a disclosure policy.

Argent Capital Management LLC lessened its stake in shares of Vertiv Holdings Co. (NYSE:VRT – Free Report) by 20.7% during the 3rd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 10,607 shares of the company’s stock after selling 2,761 shares during the period. Argent Capital Management LLC’s holdings in Vertiv were worth $2,560,000 as of its most recent filing with the SEC.

A number of other hedge funds have also recently bought and sold shares of the stock. Jupiter Topco LLC bought a new stake in shares of Vertiv during the 2nd quarter worth approximately $441,083,000. Alkeon Capital Management LLC raised its position in Vertiv by 178.2% during the fourth quarter. Alkeon Capital Management LLC now owns 2,003,110 shares of the company’s stock worth $324,524,000 after acquiring an additional 1,283,110 shares in the last quarter. State Street Corp raised its position in Vertiv by 4.5% during the second quarter. State Street Corp now owns 16,531,530 shares of the company’s stock worth $5,535,087,000 after acquiring an additional 704,970 shares in the last quarter. Bank of New York Mellon Corp lifted its stake in Vertiv by 33.7% in the first quarter. Bank of New York Mellon Corp now owns 2,410,642 shares of the company’s stock valued at $604,059,000 after acquiring an additional 608,176 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its stake in Vertiv by 24.2% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 2,657,948 shares of the company’s stock valued at $430,614,000 after acquiring an additional 517,980 shares during the last quarter. 89.92% of the stock is currently owned by institutional investors.

Vertiv Stock Performance Shares of NYSE:VRT traded up $2.54 during trading on Monday, reaching $254.72. 2,456,829 shares of the stock were exchanged, compared to its average volume of 6,383,764. Vertiv Holdings Co. has a 12 month low of $147.82 and a 12 month high of $379.93. The stock has a 50-day moving average price of $260.68 and a 200-day moving average price of $290.82. 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 firm has a market cap of $98.06 billion, a PE ratio of 57.62, a PEG ratio of 0.94 and a beta of 2.05.

Vertiv (NYSE:VRT – Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The company reported $1.52 earnings per share for the quarter, topping the consensus estimate of $1.43 by $0.09. Vertiv had a return on equity of 50.47% and a net margin of 15.09%.The business had revenue of $3.27 billion during the quarter, compared to analysts’ expectations of $3.38 billion. During the same period last year, the firm posted $0.95 EPS. The firm’s revenue for the quarter was up 24.1% compared to the same quarter last year. Vertiv has set its Q3 2026 guidance at 1.770-1.830 EPS and its FY 2026 guidance at 6.650-6.750 EPS. Research analysts expect that Vertiv Holdings Co. will post 6.73 EPS for the current fiscal year. Vertiv Dividend Announcement The business also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Monday, September 14th were issued a dividend of $0.0625 per share. This represents a $0.25 annualized dividend and a dividend yield of 0.1%. The ex-dividend date of this dividend was Monday, September 14th. Vertiv’s dividend payout ratio is 5.66%.

Insider Activity In other Vertiv news, Director Edward Monser sold 15,287 shares of the stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $253.82, for a total transaction of $3,880,146.34. Following the sale, the director directly owned 16,500 shares in the company, valued at $4,188,030. This represents a 48.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.10% of the company’s stock.

Analyst Ratings Changes Several research analysts have recently weighed in on the stock. UBS Group restated a “buy” rating and set a $370.00 price objective on shares of Vertiv in a research note on Thursday, July 30th. Royal Bank Of Canada reduced their price target on Vertiv from $418.00 to $337.00 and set an “outperform” rating for the company in a report on Thursday, July 30th. Wells Fargo & Company started coverage on Vertiv in a research report on Thursday, September 24th. They set an “overweight” rating and a $340.00 price target on the stock. Weiss Ratings lowered Vertiv from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, August 14th. Finally, KeyCorp reduced their target price on Vertiv from $360.00 to $325.00 and set an “overweight” rating for the company in a research note on Thursday, July 30th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $355.96.

View Our Latest Stock Report on VRT

Vertiv Company Profile (Free Report)

Vertiv Holdings Co provides digital infrastructure and continuity solutions for data centers, communication networks, and other technology-intensive facilities. The company helps customers design, build, operate, and maintain infrastructure that supports the availability, performance, and efficiency of critical digital systems.

Its product portfolio includes power management and distribution equipment, uninterruptible power supplies, switchgear, busways, racks, integrated modular systems, and data center infrastructure.

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Resha to help drive the next phase of Vertiv's operational excellence journey as AI and high-density computing fuel global demand for critical digital infrastructure

He succeeds Anders Karlborg, who assumes a new role as Special Operations Projects Leader and will support an orderly transition

, /PRNewswire/ -- Vertiv Holdings Co. (NYSE: VRT), a global leader in critical digital infrastructure, today announced that Michael Resha has joined the company as Executive Vice President of Manufacturing, Logistics and Operational Excellence, effective today. Resha succeeds Anders Karlborg, who is assuming a new role as Special Operations Projects Leader as he supports an orderly leadership transition.

Global manufacturing executive, Michael Resha, joins Vertiv as Executive Vice President of Manufacturing, Logistics and Operational Excellence, effective Oct. 5, 2026 Resha reports to Vertiv CEO Giordano Albertazzi and joins the executive leadership team. He leads Vertiv's global manufacturing, logistics and operational excellence organization, where he is responsible for scaling global manufacturing operations, expanding capacity, optimizing capital deployment and aligning operational execution with Vertiv's long-term growth strategy. Resha will also continue to advance the deployment and adoption of the Vertiv Operating System (VOS).

"Our ability to translate unprecedented demand into exceptional customer outcomes depends on continuously evolving our global operations as we scale," said Albertazzi. "Michael brings deep experience leading large, multinational manufacturing networks and aligning operations, engineering and supply chain capabilities to support growth. As demand for critical digital infrastructure continues to accelerate around the world, he will play an important role in advancing our operational excellence journey, further embedding the Vertiv Operating System and helping ensure the company is positioned to capitalize on the significant opportunities ahead."

Resha joins Vertiv from Stellantis, where he most recently served as Senior Vice President and Global Head of Injection and Stamping, overseeing operations across North America, Enlarged Europe, the Middle East and Africa and Asia Pacific. Previously, he led Stellantis' North American manufacturing operations across the U.S., Canada and Mexico. Earlier in his career, Resha held manufacturing leadership roles at Fiat Chrysler Automobiles, Gestamp Automoción, Volkswagen, Kia Motors and Mercedes-Benz. His experience spans global operations, capital deployment, operational improvement and leadership development.

"Vertiv's global manufacturing organization is critical to meeting growing customer demand for the infrastructure that powers and enables today's digital world," Resha said. "I look forward to working with teams around the world to continue advancing our operational excellence journey, investing in our people and scaling our global capabilities to support Vertiv's continued growth as we deliver exceptional outcomes for our customers."

Karlborg leaves his current role as Executive Vice President of Manufacturing, Logistics and Operational Excellence. He will support the leadership transition in his new capacity as Special Operations Projects Leader, reporting to Albertazzi.

"Anders has played an essential role in strengthening Vertiv's global operations during a period of rapid growth and complexity," said Albertazzi. "His deep understanding of our manufacturing footprint and ability to deliver under pressure have strengthened execution, quality and continuous improvement across the organization. I have valued his judgment, dedication and partnership throughout our eight years working together. He has made a lasting impact on Vertiv."

Resha holds a Bachelor of Science in Civil Engineering from the University of Alabama. He has also completed executive management programs at EGADE Business School and Fudan University.

For more information about Vertiv's portfolio of power and thermal management products, 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 could cause actual results to differ materially from historical performance. 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

SAN FRANCISCO, Oct. 01, 2026 (GLOBE NEWSWIRE) -- National shareholder rights law firm Hagens Berman announces that it is investigating potential securities law violations by Vertiv Holdings Co (NYSE: VRT) following a sharp stock drop triggered by disappointing Q2 financial results and unexpected execution challenges.

If you purchased or acquired Vertiv securities and suffered significant losses, submit your losses now.  

Visit: www.hbsslaw.com/vrtEmail: [email protected] Direct: 844-916-0895 Vertiv Holdings Co (NYSE: VRT) Investigation Overview:

Hagens Berman’s investigation focuses on whether Vertiv and certain of its executive officers issued materially false and misleading statements or failed to disclose material operational risks to investors.

The Optimistic Narrative (Q1 2026): Throughout early 2026—including during Vertiv’s Q1 2026 earnings conference call on April 22, 2026—management repeatedly assured investors that the company’s multi-year backlog, large-scale modular deployments and capacity expansion initiatives were running smoothly. Executives, including CEO Giordano Albertazzi and Executive Chairman Dave M. Cote, portrayed execution complexity and supply chain pressures as competitive advantages that favored established players like Vertiv, while aggressively raising full-year 2026 financial guidance.The Reality Check (July 29, 2026): On July 29, 2026, Vertiv reported its financial results for the second quarter of 2026, disclosing net sales of $3.27 billion—a significant miss compared to Wall Street consensus estimates of roughly $3.38 billion to $3.39 billion.“Timing Shifts”: Management blamed the top-line shortfall on internal and external supply chain congestion and complex multi-phase project execution at hyperscale data center deployment sites, characterizing the revenue miss as “timing shifts.” “Our investigation focuses on whether Vertiv was obligated to disclose project execution bottlenecks and site-level interdependencies at the time leadership was projecting smooth scaling and raising full-year guidance,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.

Market Impact and Stock Drop

Following these disclosures, Vertiv’s stock price plummeted 17.26% in a single trading session on July 29, 2026, dropping sharply to close at $223.04 per share, severely harming VRT investors.

What VRT Investors & Whistleblowers Can Do

Investors with Losses: If you invested in Vertiv Holdings Co (NYSE: VRT) shares and have substantial losses, submit your loss information here.Whistleblowers: Persons with non-public information regarding Vertiv should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. Contact Reed Kathrein directly at (844) 916-0895 or via email at [email protected].

Whistleblowers: Persons with non-public information regarding Vertiv should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

Attorney Advertising. Prior results do not guarantee a similar outcome in any future case.

Contact: Hagens Berman, Reed Kathrein, 715 Hearst Avenue, Suite 300, Berkeley, CA 94710, 844-916-0895, [email protected]

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of VRT, ETN, BE, CRDO, DELL either through stock ownership, options, or other derivatives. 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.

The artificial intelligence (AI) infrastructure build-out has supercharged the growth of chip designers, foundries, memory manufacturers, and other companies in the semiconductor ecosystem.

This isn't surprising, as semiconductors are the basic hardware layer of AI data centers. Basic AI tasks, such as processing data and storing parameters, wouldn't be possible without chips. So, it is easy to see why the semiconductor sector has boomed in recent years, given its role as the foundational hardware layer of the AI infrastructure ecosystem.

However, running AI tasks using these chips generates a lot of heat. An AI data center rack equipped with high-end graphics cards usually draws 40-100 kilowatts (kW) of power, which is well above the 5-10 kW power draw of a traditional server processor-based rack. Higher power consumption necessitates efficient cooling to enable AI accelerator chips to perform at their full potential.

Inefficient cooling will slow down graphics cards and other AI chips deployed in data centers. So, cooling plays an indispensable role in AI data centers, and investors can capitalize on this critical area by investing in Vertiv Holdings (VRT -1.96%).

Image source: Getty Images.

Data center cooling demand is powering Vertiv's growth Vertiv offers multiple AI data center solutions, including power systems, server racks, device management, and thermal management. The company offers a comprehensive range of thermal management systems for AI data centers, including liquid-cooling systems, heat rejection systems, rack cooling tools, and thermal control and monitoring systems to increase data center efficiency and performance.

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Vertiv's expansive AI infrastructure portfolio, which includes thermal management systems, explains why the company has been growing at a healthy pace in recent quarters. The company's Q2 revenue increased 24% to $3.27 billion, while adjusted earnings per share (EPS) rose 60% year over year to $1.52.

Importantly, Vertiv increased its full-year guidance due to the strong order inflow for its solutions. The company now expects a 60% increase in EPS this year to $6.70, on a 37% increase in revenue to $14 billion. Management noted on the August earnings call that it has a strong pipeline and expects "another year of robust orders growth."

It is worth noting that Vertiv's order backlog was $15 billion at the end of 2025. Its book-to-bill ratio was 2.9 in Q4 2025, indicating that it was receiving significantly more orders than it was shipping. Management's comments on the previous earnings call suggest that Vertiv continues to receive strong order inflow.

The good news for Vertiv investors is that the data center cooling market is poised to grow at a healthy pace over the long run, which isn't surprising as cooling is now a structural requirement in AI data centers. Grand View Research estimates that the global data center cooling market will clock a compound annual growth rate (CAGR) of 22% between 2026 and 2033, generating $128 billion in revenue by the end of the forecast period.

Vertiv's growth rate suggests that it is gaining share in the data center cooling market. So, the company seems well-positioned to sustain healthy long-term growth amid the secular growth in AI data centers, which explains why analysts have increased their long-term EPS growth expectations.

Data by YCharts

The stock could be a winner in the long run Vertiv stock has jumped 50% in 2026. However, it has lost 35% of its value after reaching a 52-week high on May 14. This sharp pullback allows investors to buy Vertiv at an attractive 28 times forward earnings, which isn't very expensive compared to the Nasdaq-100 index's forward earnings multiple of 24.

Buying the stock at these levels could be a smart long-term move. After all, analysts expect a nice bump in Vertiv's earnings over the next three years.

Data by YCharts

We have already seen that Vertiv could achieve 39% annual earnings growth over the long run. Assuming it maintains that rate in 2029 and 2030, its EPS could reach $22.37 in 2030 (using 2028's estimated EPS as the base). If this AI stock trades at 24 times earnings at that time, its stock price could reach $537 in under five years, implying potential upside of 120%.

However, I won't be surprised to see Vertiv delivering bigger gains, as it can outperform analysts' expectations in the long run due to massive investments in AI data centers, which could lead the market to reward it with a premium valuation.

Artificial intelligence (AI) has been the single biggest driver of this nearly four-year bull market, and as its use expands, more investment opportunities emerge.

The impact is multitiered -- from the chips that process AI tasks to the data centers that house clusters of them and meet the demand for AI computing power; from the infrastructure and networks needed to power data centers and move the information from machine to machine, to the memory hardware that keeps all the data accessible to the servers that require it.

One critical group of companies within the AI universe are the specialists that manufacture and service the equipment that routes the massive electrical supplies required by AI data centers and provides the liquid cooling systems that dissipate the intense heat those powerful processors generate.

The leader in this area is Vertiv Holdings (VRT +1.72%). Vertiv addresses a major potential problem for all data centers and networks that compute AI data. Because so much electricity is required to run high-end data systems, the GPUs and CPUs generate large amounts of heat, as does the supporting power equipment. That heat can slow their processing speeds and shorten the chips' useful lives, if it's not removed efficiently.

For that reason, Vertiv's cooling systems have been in high demand, and its stock price is soaring, up 55% year to date. With that impressive performance behind it, is it still a buy?

Image source: Getty Images.

Two new acquisitions Vertiv signed deals for two major acquisitions this month. It agreed to buy UtilityInnovation Group, which makes microgrids that help data centers get more of the power they need. Those microgrids also benefit utilities by taking some of the strain off of regional power grids. The acquisition is expected to be accretive to Vertiv's adjusted earnings in the first quarter after closing.

Last week, Vertiv announced it was acquiring Ireland-based King Environmental, which provides liquid-cooling services and testing for data centers across Europe, the Middle East, and Africa. This will help Vertiv expand its global presence and leadership in the industry.

These expansion moves come after a strong second quarter for Vertiv. In the period, it increased net sales by 24% year over year to $3.3 billion, grew earnings by 53% to $1.27, and increased adjusted EPS by 60% to $1.51. It also boosted its operating cash flow by 241% to $1.1 billion and its free cash flow by 234% to $925 million. The company is making the $1.45 billion UtilityInnovation acquisition with cash, and it had $5.6 billion in liquidity at the end of Q2, so it will remain in a strong cash position after that deal closes.

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A strong buy Vertiv also projects free cash flow in the range of $2.4 billion to $2.6 billion for 2026, up 32% at the midpoint. When it delivered its Q2 numbers, it also raised its guidance for net sales and earnings for the year. In now expects 37% revenue growth and 60% adjusted earnings growth, driven by a strong project backlog.

It's also worth noting that at Vertiv's investor day in May, management targeted 20% to 22% compound annual revenue growth through 2030.

While there has been meaningful public pushback against data center development across the country, demand for them remains high and the funding continues to materialize, which puts Vertiv in a great spot.

Its shares have dropped in recent months, but now the stock is reasonably valued, with a forward P/E ratio of 27 and a five-year PEG below 1, suggesting that it's a long-term value. As such, Vertiv looks like a strong buy right now.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Vertiv Holdings Co. (VRT - Free Report) Vertiv is a leading global provider of critical digital infrastructure and services for data centers, communication networks, and commercial and industrial environments. Vertiv serves essential industries, including cloud computing, financial services, healthcare, transportation, manufacturing, energy, government, education, retail and social media.

VRT is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. VRT has a Growth Style Score of A, forecasting year-over-year earnings growth of 59.3% for the current fiscal year.

Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.28 to $6.69 per share. VRT boasts an average earnings surprise of +12.6%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, VRT should be on investors' short list.

Some of the largest tech companies are investing heavily in building data centers to meet the insatiable demand for artificial intelligence (AI) services. Morgan Stanley expects capital spending by the top hyperscalers to reach $1.4 trillion by 2028.

Investors can still find attractively valued stocks that could soar over the next several years. Two data center stocks that appear reasonably priced relative to their growth potential are Iren (IREN -4.39%) and Vertiv (VRT +3.25%).

Image source: Getty Images.

1. Iren: A vertically integrated AI cloud Shares of Iren have surged more than 1,000% over the past three years, and it's not hard to see the stock continuing to push to new highs. Iren is building an artificial intelligence (AI) cloud platform from the ground up: It owns the land, controls the power, and uses in-house construction and engineering teams to build its facilities. These assets are hard to replicate. Iren also recently completed the acquisition of Mirantis, adding software capabilities to complement its data center hardware.

Iren isn't just building data centers. The Mirantis deal shows Iren is positioning to become a leading AI cloud infrastructure provider over the long term -- and that ambition still isn't reflected in the stock's $19 billion market value.

The company is currently at $1 billion in annualized revenue, with management guiding to $4 billion by the end of 2026. Contract pricing for capacity is also moving higher. Recent three-year contracts have cleared more than $20 million of revenue per IT megawatt, with current discussions pointing to $25 million per megawatt.

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Iren has a pipeline of more than 5 gigawatts, which translates into tens of billions in long-term revenue potential. It just delivered the first of four 50-megawatt liquid-cooled units to Microsoft as part of a previously announced five-year, $9.7 billion deal from October 2025. The next deployments are expected in the fourth quarter of 2026.

That first delivery validates Iren's ability to execute complex projects -- a must-have capability in today's market. It also reinforces the strength of Iren's vertically integrated approach, which could help it build faster, hit timelines, and win more large-scale contracts.

Wall Street analysts expect adjusted operating profit to reach $10.7 billion by fiscal 2029. Against an enterprise value (market cap plus net debt) of about $19 billion, the stock looks cheap. Investors who are able to hold through near-term volatility could be rewarded.

2. Vertiv: A leader in power management and cooling Vertiv helps data centers manage power usage and keep chips running efficiently with advanced cooling systems, including liquid cooling. The company's revenue growth has strengthened over the past three years, pushing the stock up 596%.

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As server racks draw more power and generate more heat, Vertiv can sell more equipment to each data center. Over time, that can translate into higher revenue per build-out -- and stronger margins as demand shifts toward more complex, higher-value systems.

In the recent quarter, revenue grew 24% year over year, with adjusted operating profit margin above 22%. Management is seeing a strong data center market that's expanding geographically, with smaller frontier AI labs maturing into larger customers with bigger spending budgets. These trends support Vertiv's growth outlook.

That backdrop is why management now guides for long-term annualized revenue growth of 20% to 22% through 2030, up from its prior 12% to 14% outlook. It also expects adjusted operating margin to improve to at least 27%, which would drive faster earnings growth.

Management's confidence reflects broad demand -- from individual products like switchgear to full-system designs through offerings like OneCore and SmartRun. That end-to-end footprint can deepen customer relationships and increase long-term stickiness.

Wall Street expects long-term earnings growth of 38% annually. If that plays out, investors could see strong returns even with the stock trading at around a forward price-to-earnings multiple of 37.

Key Takeaways Dividend growth stocks can offer steady income, lower volatility and long-term compounding potential.Vertiv projects 36.9% 2026 revenue growth, while its long-term earnings growth rate is 36.30%. Taiwan Semiconductor projects 36.5% 2026 revenue growth and a 27.30% long-term earnings growth rate. Wall Street finished virtually flat on Sept. 24, as stocks staged a late-day recovery, erasing earlier losses triggered by surging bond yields and rising oil prices. A brief intraday pullback came as investors digested potential U.S.-Iran discussions regarding the Strait of Hormuz. 

With the 30-year U.S. Treasury yield surging to its highest level since 2004, market participants remain cautious about concentrating heavily in high-multiple, pure-growth stocks.

Instead, dividend growth stocks offer an appealing sweet spot: combining steady income generation, lower equity volatility and long-term compounding power amid macro uncertainty. 

These companies boast a proven track record of increasing payouts, underscoring the balance-sheet strength and cash-flow resilience required to navigate a market environment where traditional growth narratives are being reassessed.

Stocks with a strong history of year-over-year dividend growth can help build a resilient portfolio with greater potential for capital appreciation compared to simple dividend-paying or high-yield stocks.  

We have selected five dividend growth stocks, Enersys Inc. (ENS - Free Report) , Amgen (AMGN - Free Report) , Cheesecake Factory (CAKE - Free Report) , Vertiv Holdings (VRT - Free Report) and Taiwan Semiconductor (TSM - Free Report) , which could be solid choices for your portfolio.

Why Is Dividend Growth Better?Stocks with a strong history of dividend growth are typically associated with mature companies that are less prone to sharp market swings, allowing them to serve as a hedge against economic or political uncertainty as well as broader market volatility. Their steadily rising payouts provide some measure of downside protection. 

These companies are generally backed by solid fundamentals, making them attractive long-term dividend-growth investments. Key strengths include durable business models, consistent profitability, expanding cash flows, healthy liquidity, strong balance sheets and attractive valuations. 

A consistent history of dividend growth underscores the potential for continued growth ahead. 

Although these stocks do not necessarily have the highest yields, they have outperformed the broader stock market and other dividend-paying stocks over an extended period.

As a result, selecting dividend-growth stocks appears to be a winning strategy when other key parameters are taken into account. 

5-Year Historical Dividend Growth Greater Than Zero: This selects stocks with a solid dividend growth history. 

5-Year Historical Sales Growth Greater Than Zero: This represents stocks with a strong record of growing revenues. 

5-Year Historical EPS Growth Greater Than Zero: This represents stocks with a solid earnings growth history. 

Next 3-5 Year EPS Growth Rate Greater Than Zero: This represents the rate at which a company's earnings are expected to grow. Improving earnings should help companies sustain dividend payments. 

Price/Cash Flow Less Than M-Industry: A ratio lower than the industry median indicates that a stock is undervalued within its industry, meaning an investor would pay less for the company’s cash flow.

52-Week Price Change Greater Than S&P 500 (Market Weight): This ensures that a stock has appreciated more than the S&P 500 over the past year.

Top Zacks Rank: Stocks having a Zacks Rank #1 (Strong Buy) or 2 (Buy) generally outperform their peers in all types of market environments.

Growth Score of B or Better: Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.

These few criteria alone narrowed the universe from more than 7,700 stocks to just eight.

Here are five of the eight stocks that fit the bill:

Pennsylvania-based EnerSys manufactures, markets and distributes industrial batteries and related stored-energy products. It also develops battery chargers and accessories, power electronics, power equipment and outdoor cabinet enclosures. The Zacks Consensus Estimate for ENS' fiscal 2027 revenues suggests a year-over-year improvement of 3.7%. The stock boasts a long-term (three-to-five years) earnings growth rate of 15% and has an annual dividend yield of 0.64%. 

ENS currently carries a Zacks Rank #2 and has a Growth Score of A. 

California-based Amgen is one of the biggest biotech companies in the world, with a strong presence in the oncology, general medicine, inflammation and rare diseases markets. The Zacks Consensus Estimate for AMGN’s 2026 revenues suggests a year-over-year improvement of 5.6%. The stock boasts a long-term earnings growth rate of 6% and has an annual dividend yield of 2.48%. 

AMGN currently carries a Zacks Rank #2 and has a Growth Score of B. 

Headquartered in California, Cheesecake Factory is a restaurant and bakery company that owns and operates hundreds of upscale, full-service dining locations. The Zacks Consensus Estimate for CAKE's 2026 revenues suggests a year-over-year improvement of 7%. The stock boasts a long-term earnings growth rate of 13.40% and an annual dividend yield of 1.15%. 

CAKE currently sports a Zacks Rank #1 and has a Growth Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ohio-based Vertiv Holdings is a leading global provider of critical digital infrastructure and services for data centers, communication networks, and commercial and industrial environments. The Zacks Consensus Estimate for VRT’s 2026 revenues suggests a year-over-year improvement of 36.9%. The stock boasts a long-term earnings growth rate of 36.30% and has an annual dividend yield of 0.10%.

VRT currently carries a Zacks Rank #2 and has a Growth Score of A.

Headquartered in Taiwan, Taiwan Semiconductor is the world's largest dedicated integrated circuit foundry. The Zacks Consensus Estimate for TSM’s 2026 revenues suggests a year-over-year improvement of 36.5%. The stock boasts a long-term earnings growth rate of 27.30% and has an annual dividend yield of 0.78%.

TSM currently carries a Zacks Rank #2 and has a Growth Score of B.

Planned acquisition expected to expand Vertiv's leadership in next-generation thermal services for high-density and AI-driven environments into Europe, Middle East and Africa

Builds on Vertiv's North American fluid management capabilities with European execution capacity and specialized load testing expertise

, /PRNewswire/ -- Vertiv Holdings Co (NYSE: VRT), a global leader in critical digital infrastructure, today announced that it has entered into an agreement to acquire King Environmental Services Ltd. (KES), a Europe-based provider of fluid management, commissioning and load-testing services for high-density, liquid-cooled data centers and other applications.

Vertiv announced an agreement to acquire King Environmental Services Ltd., expanding its global fluid management services into EMEA. The acquisition is expected to expand Vertiv's global thermal management services capabilities into Europe, Middle East and Africa (EMEA) and advance its strategy to support customers across the thermal chain. KES adds specialized fluid management, commissioning and load-testing capabilities spanning system preparation, performance validation, monitoring, maintenance and lifecycle optimization. 

The transaction builds on Vertiv's established North American fluid management presence, including its 2025 acquisition of PurgeRite, and represents the next step in expanding its global thermal and fluid management services platform. By combining KES's regional field expertise and load-testing capabilities with Vertiv's broader services portfolio, the company expects to provide more comprehensive support as customers deploy and operate complex AI and high-density infrastructure with greater reliability, efficiency and accountability.

"As computing density increases, the performance of cooling and power infrastructure will depend as much on execution in the field as on engineering and system design," said Gio Albertazzi, CEO of Vertiv. "Our acquisition of PurgeRite, in December of 2025, established an important fluid management foundation in North America, and KES is expected to build on that foundation in EMEA. Together, these acquisitions advance our strategy to provide the specialized expertise and disciplined execution customers need as they deploy increasingly complex infrastructure at scale."

That need for disciplined execution is particularly important as high-performance computing and AI workloads increase heat densities and accelerate the adoption of liquid cooling. In these systems, fluid quality is critical to uptime, thermal performance and equipment life. Contamination, trapped air, corrosion, improper chemistry and flow imbalances can reduce heat-transfer efficiency, contribute to equipment degradation and create commissioning and operational risks. Beyond initial commissioning, customers need lifecycle fluid management services to support system availability, thermal performance, equipment longevity and operational economics.

KES has built a strong reputation in Europe based on its technical specialization, experienced field teams, established operating infrastructure and safety culture. Its capabilities include fluid-system preparation, flushing, filtration, water treatment, commissioning and performance validation. KES also provides thermal load testing for liquid cooling infrastructure and electrical load testing for critical power systems.

Together, Vertiv and KES are expected to deliver significant customer benefits from an expanded set of capabilities designed to:

Reduce operational complexity through a single accountable partner for commissioning, testing, fluid management and ongoing operations; Improve cooling system performance with clean, balanced and validated fluid systems that support optimal heat transfer and equipment efficiency; Maintain compliance with regional fluid handling, treatment and disposal requirements; and Increase confidence in infrastructure readiness through thermal load testing before facilities enter operation. KES is headquartered near Dublin, Ireland, and serves customers across the EMEA region.

The transaction is expected to close in the fourth quarter of 2026. The financial terms were not disclosed and are not expected to be material to Vertiv's financial results.

For more information about Vertiv's portfolio of power and thermal management products, 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.

About King Environmental Services (KES)
King Environmental Services Ltd. (KES) is a Europe-based specialist in fluid management, flushing, commissioning and operational validation for high-density, liquid-cooled data centers and other mission-critical facilities. Founded in 2002 and headquartered near Dublin, Ireland, KES serves customers across EMEA from key hubs in North Dublin and Frankfurt.

KES provides an integrated service covering design review and feasibility studies, pipework flushing, filtration and water treatment, testing, adjusting and balancing (TAB), data logging and thermography, and large-scale thermal and electrical load testing. The company bridges construction and live operation, validating that cooling systems are clean, balanced, efficient, design-compliant and ready for high-density and AI workloads.

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 KES; the ability of Vertiv to retain management and key employees of KES; 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

Dividends come with many great perks, with the payouts essentially reflecting a form of ‘payday’ in the market. Technology sector stocks are often overlooked by income-focused investors, as these companies commonly use spare cash to fuel further growth.

But several stocks with favorable AI tailwinds – Broadcom (AVGO - Free Report) , Vertiv (VRT - Free Report) , and Caterpillar (CAT - Free Report) – shell out dividend payments. For those interested in getting paid with some AI exposure, let’s take a closer look at each.

Vertiv Benefits from Data Center Buildout

Vertiv, a current Zacks Rank #2 (Buy), provides services for data centers, communication networks, and commercial and industrial facilities with a portfolio of power, cooling, and IT infrastructure solutions and services.

While shares currently yield a modest 0.1% annually, the stock still reflects a strong play for those seeking a combination of growth and yield.

Broadcom Posts Record Revenue

Broadcom has quickly entered the AI race, evolving a broad portfolio of technologies to extend its leadership in enabling next-generation AI infrastructure. Shares currently yield 0.7% annually, with the company sporting a shareholder-friendly 13.1% five-year annualized dividend growth rate.

The stock has long been a favorite among those seeking tech exposure paired with paydays, with the company’s strong cash-generating abilities allowing it to consistently reward shareholders over its history.

Caterpillar Powers Data Centers

Caterpillar’s products generate the raw power for data centers, with higher demand for power products used in data center applications, primarily large reciprocating engines, reflecting a catalyst. The stock sports a favorable Zacks Rank #2 (Buy).

The company deployed $7.9 billion in cash for share repurchases and dividend payouts throughout its FY25. Keep in mind that the company also holds the elite Dividend Aristocrat title, with shares currently yielding 0.8% annually.