Shares of Vertiv Holdings rose on Wednesday, rising about 17.9% in early trading. The stock moved from around $199.62 at the previous close to nearly $235.33 by 10:30 a.m. ET. Over the past year, Vertiv shares are up about 59%, clearly beating the S&P 500’s 14% gain. The rally followed strong quarterly results and a confident outlook for 2026.
Earnings beat lifts sentiment
Vertiv reported fourth-quarter revenue of $2.88 billion, up 23% from a year ago and close to market expectations. Adjusted earnings came in at $1.36 per share, higher than Wall Street’s estimate of about $1.30 and up from $0.99 last year. Net income rose sharply to $445.6 million from $147.0 million a year earlier. Operating profit and margins also improved, helped by higher sales volumes and better efficiency.
“Our fourth quarter performance demonstrates Vertiv’s leadership position in an increasingly complex and demanding data center market,” Giordano Albertazzi, Vertiv’s chief executive officer, said in the earnings announcement.
AI data centers drive strong orders
The company said demand remains strong as data centers expand to support artificial intelligence. AI workloads need much more power and cooling, which plays directly to Vertiv’s strengths.
Orders jumped sharply during the quarter, with organic orders rising more than 250% from a year earlier. The order backlog reached a record $15 billion, more than double last year’s level, giving the company strong visibility into future growth.
Cash flow improves and 2025 ends strong
Vertiv also reported strong cash generation. Fourth-quarter operating cash flow reached about $1.0 billion, while adjusted free cash flow rose sharply. For full year 2025, the company delivered organic sales growth of 26% and a big jump in earnings. Management said demand from hyperscale and colocation data centers stayed strong throughout the year.
2026 outlook excites investors
The biggest boost to the stock came from Vertiv’s 2026 guidance. The company expects full-year revenue of $13.25 billion to $13.75 billion, well above market expectations, and adjusted diluted earnings per share of $5.97 to $6.07. Management said the record backlog supports another year of strong growth, especially as AI-related data center spending continues to rise.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a registered financial advisor in the respective jurisdiction.