Key Points
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Vertiv supplies critical power and cooling equipment for AI data centers, maintaining a solid order book that fuels strong revenue and earnings growth.
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A recent 30% pullback from recent highs offers a potential entry point for investors seeking exposure to the AI infrastructure theme.
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Robust market tailwinds and a $15 billion order backlog suggest further upside for Vertiv’s stock beyond its recent 109% rally.
Vertiv Holdings (NYSE:VRT) may not be a household name, but its shares have risen roughly 109% over the past year as demand for AI‑driven data‑center infrastructure accelerates.
The company designs, manufactures, and services the power and thermal management solutions that keep modern data centers running smoothly. Its product portfolio includes uninterruptible power supplies, battery storage, power distribution units, liquid‑cooling systems, and server racks—components that are increasingly essential as AI workloads expand.
Image source: The Motley Fool.
Vertiv operates in a fast-growing market
Demand for Vertiv’s thermal management, power management, and server‑rack solutions is expanding rapidly. Persistence Market Research forecasts that liquid‑cooling system sales in data centers will grow at a 26% compound annual rate through 2033. Meanwhile, Goldman Sachs predicts that data‑center power demand could increase by 170% between 2025 and 2030, creating strong tailwinds for Vertiv’s power‑solution businesses such as uninterruptible power supplies, battery storage, and power‑distribution systems.
These end‑market dynamics are translating into solid topline growth. Vertiv reported a 24% year‑over‑year increase in second‑quarter revenue, reaching $3.27 billion. Adjusted earnings climbed 60% YoY to $1.52 per share, and adjusted free cash flow surged 234% YoY to $925 million. The company now forecasts $14 billion in revenue for 2026—a roughly 37% improvement over the prior year—and expects adjusted earnings per share to rise about 60% to $6.70. Guidance was raised after Vertiv noted a $15 billion order backlog at the end of 2025 and a book‑to‑bill ratio of 2.9 in Q4 2025, indicating demand well exceeds current production capacity.
VRT Revenue Estimates for Current Fiscal Year data by YCharts
Strong earnings growth suggests more upside
Vertiv expects earnings to jump about 60% for the current year, and analysts are projecting healthy double‑digit EPS growth over the next few years. Recent upward revisions to long‑term EPS growth estimates reinforce the view that Vertiv can outperform consensus expectations.
VRT EPS Estimates for Current Fiscal Year data by YCharts
Looking out to 2028, consensus forecasts place Vertiv’s EPS near $11.60. If the stock continues to trade at an average Nasdaq‑100 multiple of roughly 34× earnings, the share price could reach about $394, representing a potential upside of roughly 50% from current levels. Given the company’s strong order backlog and the likelihood of earnings beats, Vertiv may deliver even larger gains.
VRT EPS LT Growth Estimates data by YCharts
Investors seeking exposure to the rapidly expanding AI infrastructure market can consider Vertiv as a core holding. The combination of a robust product portfolio, strong demand trends, a healthy order pipeline, and accelerating earnings growth positions the company for continued appreciation. A pullback in the recent past now offers a potentially attractive entry point for those who believe in the long‑term growth story of AI‑driven data‑center expansion.