Vertiv (NYSE:VRT – Get Free Report) announced its quarterly earnings results on Wednesday. The company reported $2.21 earnings per share for the quarter, beating the consensus estimate of $1.82 by $0.39, FiscalAI reports. The business had revenue of $4.31 billion during the quarter, compared to analysts’ expectations of $3.75 billion. Vertiv had a net margin of 15.09% and a return on equity of 50.47%. The firm’s revenue for the quarter was up 61.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.24 EPS.
Here are the key takeaways from Vertiv’s conference call:
- Vertiv raised its full-year 2026 guidance across all key metrics, including revenue to $14.65 billion, adjusted EPS to $7.15, operating profit to more than $3.5 billion, and free cash flow to $2.7 billion.
- Third-quarter results significantly exceeded expectations, with revenue up 61% year over year, adjusted operating margin expanding to 25.2%, EPS rising 78% to $2.21, and free cash flow increasing 50% to $652 million.
- Management reported exceptionally strong demand, with organic orders up more than 100% year over year in Q3 and pipeline strength broad-based across customer types, technologies, and regions; it expects continued above-market growth into 2027.
- Vertiv is expanding global manufacturing capacity, supply-chain agreements, engineering, and services to support its backlog, while new offerings such as liquid cooling, converged infrastructure, and 800-volt power systems are intended to strengthen its competitive position.
- Management acknowledged ongoing execution risks from complex project delivery, new-product quality, supply-chain resilience, power availability, permitting, and skilled-labor constraints; some delayed Q2 revenue only flowed into Q3, and the company continues to invest heavily in capacity and inventory.
Vertiv Price Performance
Shares of NYSE VRT opened at $241.89 on Thursday. The company has a 50 day simple moving average of $243.57 and a two-hundred day simple moving average of $268.24. Vertiv has a fifty-two week low of $147.82 and a fifty-two week high of $379.93. The company has a market capitalization of $93.13 billion, a price-to-earnings ratio of 54.73, a P/E/G ratio of 0.72 and a beta of 2.05. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.38.
Vertiv Dividend Announcement
The firm also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Monday, September 14th were paid a dividend of $0.0625 per share. The ex-dividend date of this dividend was Monday, September 14th. This represents a $0.25 dividend on an annualized basis and a dividend yield of 0.1%. Vertiv’s dividend payout ratio (DPR) is currently 5.66%.
Wall Street Analyst Weigh In
A number of research firms have commented on VRT. BNP Paribas Exane lowered their price target on Vertiv from $380.00 to $365.00 and set an “outperform” rating for the company in a research report on Friday, July 31st. Roth Capital reiterated a “buy” rating on shares of Vertiv in a research report on Tuesday, October 20th. Daiwa Securities Group reduced their target price on Vertiv from $400.00 to $340.00 and set a “buy” rating on the stock in a research note on Tuesday, July 21st. HSBC reduced their target price on Vertiv from $376.00 to $365.00 and set a “buy” rating on the stock in a research note on Friday, July 31st. Finally, TD Cowen decreased their target price on Vertiv from $387.00 to $356.00 and set a “buy” rating for the company in a report on Thursday, July 30th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $335.85.
View Our Latest Stock Analysis on Vertiv
Insider Buying and Selling at Vertiv
In related news, Director Edward Monser sold 15,287 shares of the company’s stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $253.82, for a total value of $3,880,146.34. Following the sale, the director owned 16,500 shares in the company, valued at $4,188,030. This represents a 48.09% decrease in their position. 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 insiders.
Key Headlines Impacting Vertiv
Here are the key news stories impacting Vertiv this week:
- Positive Sentiment: Vertiv reported third-quarter revenue of $4.31 billion, up 61% year over year and above the $3.75 billion consensus estimate. Adjusted EPS was $2.21, exceeding expectations of $1.82 and rising from $1.24 a year earlier. Vertiv third-quarter results and guidance
- Positive Sentiment: Organic orders more than doubled, while operating profit increased 90%. Management said demand is accelerating across the Americas, Asia-Pacific and EMEA, with power and cooling systems benefiting from continued AI data-center construction. Vertiv Q3 earnings call transcript
- Positive Sentiment: Vertiv raised its full-year 2026 outlook across key metrics, including revenue of approximately $14.65 billion, and forecast fourth-quarter organic growth of about 50% with adjusted EPS near $2.25. Vertiv raises outlook after strong third quarter
- Positive Sentiment: Investors also viewed Vertiv’s expansion into grid equipment, microgrid controls and liquid cooling favorably. Its UtilityInnovation Group acquisition and collaboration with NVIDIA are intended to help customers overcome power constraints and deploy high-density AI facilities faster.
- Neutral Sentiment: Deferred revenue rose substantially, indicating customers are paying in advance to secure equipment amid constrained supply and lengthy data-center deployment timelines. This supports future demand but increases the importance of converting orders into revenue efficiently.
- Negative Sentiment: Vertiv’s valuation remains elevated, with a reported P/E ratio above 55. Future gains will depend on sustaining rapid growth, expanding production and protecting margins; supply-chain delays, factory bottlenecks or slower AI capital spending could pressure the stock.
About Vertiv
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.
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