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what it is
Vertiv sells the power, cooling, racks, and service gear that keep data centers running when servers cannot go down.
how it gets paid
Last year Vertiv Hldgs made $10.2B in revenue. Americas was the main engine at $6.3B, or 62% of sales.
why it's growing
Revenue grew 27.7% last year. Heightened demand for vertiv’s core portfolio of data infrastructure products and software helped drive momentum.
what just happened
Last quarter, Vertiv posted $1.36 in EPS versus $1.27 expected, a 7.1% beat.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
30/100 earnings predictability — expect surprises
62.9x trailing p/e — you're paying up for this one
0.1% dividend yield — cash in your pocket every quarter
47.5% return on capital — every dollar works hard here
xvary composite: 74/100 — average
What they do
Vertiv sells the power, cooling, racks, and service gear that keep data centers running when servers cannot go down.
Vertiv wins because data centers buy failure insurance, not just hardware. The company operates in 45 countries and generated $10.2B of revenue in the last year, with return on capital at 47.5%. Return on capital → profit generated from each dollar invested → so what: your money is sitting in a business that turns infrastructure demand into unusually rich economics.
How they make money
$10.2B
annual revenue · their business grew +27.7% last year
Americas
$6.3B
+27.7%
Asia Pacific
$2.0B
+27.7%
EMEA
$1.8B
+27.7%
Other
$0.0B
flat
The products that matter
keeps servers powered
power infrastructure
part of $10.2B revenue
power gear sits inside the same $10.2B business that grew 27.7% last year. If AI racks keep drawing more electricity, this stays in the center of the spend.
critical
keeps servers cool
thermal management
part of $10.2B revenue
cooling is not optional when compute density rises. The page does not break out revenue here, but it sits inside the same $10.2B infrastructure budget customers are expanding.
ai exposure
installs and supports systems
services
supports the installed base
services matter because uptime matters. We do not have a revenue split on this page, so the honest read is simple: support work helps defend a 20.2% net margin on the overall $10.2B business.
stickier revenue
Key numbers
62.9x
trailing p/e
P/E → price divided by last year's profit → so what: you are paying a luxury multiple for an industrial supplier.
47.5%
return on capital
Return on capital → profit earned on money invested in the business → so what: Vertiv is producing elite economics for this kind of company.
$18B
2029 sales
The 2029 revenue estimate is $18B versus $10.2B today, so your bull case needs roughly 76% more sales in four years.
$297
18-month target
That target is only about 12% above the current $264.35 price, which is a small reward for a stock this volatile.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 10 / 100
- long-term debt $3.1B (3% of capital)
- net profit margin 23.0% — keeps 23 cents of every dollar in revenue
- return on equity 61% — $0.61 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in VRT 3 years ago → it's now worth $172,420.
The index would have given you $14,540.
source: institutional data · total return
What just happened
beat estimates
Last quarter, Vertiv posted $1.36 in EPS versus $1.27 expected, a 7.1% beat.
Quarterly EPS went from $0.38 in Q4 2024 to $1.36 in Q4 2025. That helped push full-year EPS to $4.20 in 2025 from $1.28 in 2024.
$10.2B
ttm revenue
$1.36
quarterly eps
7.1%
eps surprise
the number that mattered
The key number was $1.36 in quarterly EPS, because it beat the $1.27 estimate and capped a jump from $1.28 to $4.20 in full-year EPS.
-
vertiv holdings’ stock is firing on all cylinders.
-
at the recent quotation, these shares have increased 40%-plus in value since our mid-december report, and are in the vicinity of their all-time high.
-
the favorable market sentiment may be attributed to myriad factors.
-
however, the company’s strong 2025 financial performance likely helped.
-
during the fourth quarter and full year, sales increased 22.7% and 27.6%, to $2.9 billion and $10.23 billion, respectively.heightened demand for vertiv’s core portfolio of data infrastructure products and software helped drive momentum. the healthy sales stream buoyed share earnings results of $1.36 and $4.20 a share, respectively, during the decemberand full-year periods. also, solid near-term prospects ought to provide the proverbial ’wind in the sails’ for upward top- and bottom-line movements in 2026 and 2027.
source: company earnings report, 2026
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What could go wrong
the #1 risk is a pause in ai and data-center infrastructure spending. That would hit the growth story first and the multiple second.
med
data-center capex slows
Vertiv's entire $10.2B revenue base is tied to critical digital infrastructure. If hyperscalers and enterprise customers slow builds, the whole income statement feels it.
impact: this risk touches 100% of revenue because the company is one big infrastructure bet.
med
profitability gives back some of the recent gains
Full-year net margin was 20.2%, but the latest quarter showed 14.9%. One quarter does not make a trend. It does remind you margins can move around while the stock trades like perfection is normal.
impact: if margin pressure shows up while growth cools, 62.9x trailing earnings becomes hard to defend.
med
the stock is priced for continued excellence
At 62.9x trailing earnings and about 44.1x this year's estimated earnings, you are paying a premium before the next set of results arrives. That leaves less forgiveness for merely good numbers.
impact: even solid execution can lead to a flat stock if growth stops accelerating.
A spending pause would pressure 100% of the $10.2B revenue base, and a stock trading at 62.9x trailing earnings does not need much disappointment to re-rate.
source: institutional data · regulatory filings · risk analysis
Pay attention to
trend
whether growth stays closer to 27.7% than 10%
The stock can handle a slowdown. It cannot handle a hard landing after this kind of re-rating.
metric
quarterly margin stability
Last quarter's 14.9% net margin sits below the 20.2% full-year margin. You want that gap explained by mix or timing, not deterioration.
calendar
next earnings print
With earnings predictability at 30/100, the next report matters more than usual. This is not a stock where you sleep through quarter-end.
risk
institutional buying after the run from $54 to $267
Big money has been net buying for three straight quarters. If that flips after a huge move, sentiment can cool fast.
Analyst rankings
short-term outlook
top 5%
momentum score 1 — the highest rating. in human-speak, analysts think this should outperform almost everything in the near term.
risk profile
average
stability score 3 means middle-of-the-road risk. Not a bunker stock. Not a grenade.
chart momentum
below average
technical score 4 says the chart is less convincing than the fundamental story. Welcome to what happens after a massive run.
earnings predictability
30 / 100
analysts do not see this as a smooth-and-steady earnings machine. Expect sharper reactions around results.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 672 buyers vs. 496 sellers in 4q2025. total institutional holdings: 0.3B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$147
$447
$264
current price
$297
target midpoint · +12% from current · 3-5yr high: $415 (+55% · 12% ann'l return)
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