Vertiv Holdings (VRT) AI Stock Analysis

• Market Cap: $98.61B
• Dividend Yield: 0.11%
• Average Volume (3M): 5.88M
• Price to Earnings (P/E): 74.7
• Beta (1Y): 2.60
• Revenue Growth: 28.76%
• EPS Growth: 76.31%
• Country: US
• Employees: 31,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.36
• Shares Outstanding: 382,598,450
• 10 Day Avg. Volume: 5,120,803
• 30 Day Avg. Volume: 5,883,339
• PEG Ratio: 0.28
• Price to Book (P/B): 15.69
• Price to Sales (P/S): 6.05
• P/FCF Ratio: 32.65
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 9.34
• Enterprise Value/Gross Profit: 26.87
• Enterprise Value/Ebitda: 44.31
• 1Y Price Target: $280.15
• Price Target Upside: 9.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 5.99
• Revenue Forecast (FY): $13.58B

• Rating: 78 Outperform
• Price Target: $294.00 ▲(15.34% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is driven by strong fundamentals (profitability turnaround and standout free-cash-flow generation) and very bullish guidance/backlog signals from the latest earnings call. These positives are partially offset by expensive valuation (high P/E), overbought technical readings, and execution/visibility risks tied to revenue timing (lumpy, elongated backlog) and regional softness (APAC/EMEA).

Positive Factors

Strong free cash flow generation

Sustained, high free cash flow provides durable funding for capacity buildouts, acquisitions, debt reduction, and shareholder returns. High FCF relative to net income indicates earnings quality and resilience through cycles, enabling strategic reinvestment without immediate equity dilution.

Large backlog and order intake

A sizable backlog and outsized book-to-bill give multi-quarter revenue visibility and support sustained organic growth targets. This backlog underpins management's 2026 guidance and enables capacity planning, pricing power and predictable revenue conversion over the medium term.

Product, services and strategic M&A

Expanding services and targeted M&A strengthen differentiation in high-growth AI/data center cooling and fluid management. Recurring service revenue and integrated thermal solutions increase customer stickiness and margins, improving long-term revenue mix and competitive moat.

Negative Factors

Sharp trailing revenue decline

A material recent revenue drop signals demand normalization or lost volume that can pressure margin sustainability and makes margin gains less durable. Recovery depends on backlog conversion and regional demand, creating execution risk for multi-quarter margin targets.

Regional demand weakness (APAC & EMEA)

Persistent softness in China and EMEA creates geographic concentration risk where Americas must offset weaker regions. Prolonged regional underperformance can compress margins, slow global revenue recovery, and force pricing or mix tradeoffs that reduce durable profit expansion.

Order lumpiness, elongated backlog and reduced disclosure

Longer conversion windows and no quarterly order/backlog reporting reduce forecast visibility and complicate capacity, working‑capital and inventory planning. This heightens execution risk: large backlog size can coexist with volatile revenue timing and margin unpredictability.

Vertiv Holdings Business Overview & Revenue Model

Company Description

Vertiv Holdings Co, together with its subsidiaries, designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments. It offers AC and DC power management products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure that are integral to the technologies used for various services, including e-commerce, online banking, file sharing, video on-demand, energy storage, wireless communications, Internet of Things, and online gaming. The company also provides lifecycle management services, predictive analytics, and professional services for deploying, maintaining, and optimizing its products and their related systems; and preventative maintenance, acceptance testing, engineering and consulting, performance assessments, remote monitoring, training, spare parts, and critical digital infrastructure software services. It offers its products primarily under the Liebert, NetSure, Geist, E&I, Powerbar, and Avocent brands. The company serves social media, financial services, healthcare, transportation, retail, education, and government industries through a network of direct sales professionals, independent sales representatives, channel partners, and original equipment manufacturers in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Vertiv Holdings Co is headquartered in Columbus, Ohio.

How the Company Makes Money

Vertiv generates revenue through multiple streams, primarily by selling its hardware products such as uninterruptible power supplies (UPS), thermal management equipment, and modular data centers. Additionally, the company offers services including installation, maintenance, and consulting, which provide recurring revenue through service contracts. Key revenue streams also include software solutions that enhance the management and efficiency of data centers. Vertiv benefits from significant partnerships with major technology firms and service providers, which help expand its market reach and enhance its product offerings. The growing demand for data center infrastructure and the increasing reliance on cloud computing contribute to the company's earnings potential.

Vertiv Holdings Financial Statement Overview

Summary

Strong profitability and cash generation underpin the score: TTM net income ~$1.33B with ~10.7% net margin and robust free cash flow of ~$1.92B (~88% of net income). Balance sheet progress is positive (debt-to-equity ~0.92, strong ROE), but leverage history and a sharp TTM revenue decline (-24.2%) add durability and demand-normalization risk.

Income Statement

Profitability has improved materially versus earlier years, with TTM (Trailing-Twelve-Months) net income of ~$1.33B and net margin around 10.7% versus low-single-digit margins in 2021–2022 and a loss in 2020. Operating profitability is also stronger, with TTM operating margin ~15.7% and EBITDA margin ~18.7%. The key drawback is the sharp TTM revenue decline (-24.2%) after solid growth in 2023–2024, which raises questions on demand normalization and sustainability of recent margin gains.

Balance Sheet

Leverage and returns have improved meaningfully over time: debt-to-equity has come down from very high levels in 2020–2022 to ~0.92 in TTM (Trailing-Twelve-Months), while return on equity increased to ~35% in TTM, reflecting stronger earnings. However, the balance sheet still carries notable leverage history (above 1x debt-to-equity in 2023–2024) and the step-change in total debt between 2024 and TTM suggests the capital structure may be in transition, which can add uncertainty when evaluating durability.

Cash Flow

Cash generation is a standout: TTM (Trailing-Twelve-Months) operating cash flow is ~$2.14B and free cash flow is ~$1.92B, with free cash flow growth of ~40% versus the prior period. Free cash flow is well-supported by earnings (free cash flow at ~88% of net income), indicating good earnings quality. The main watch item is that operating cash flow relative to operating profit is not especially high (coverage around ~0.44), suggesting working-capital or timing effects can still meaningfully influence near-term cash conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.23B	8.01B	6.86B	5.69B	5.00B
Gross Profit	3.51B	2.75B	2.22B	1.40B	1.38B
EBITDA	2.21B	1.19B	1.02B	616.70M	483.80M
Net Income	1.33B	495.80M	460.20M	76.60M	119.60M
Balance Sheet
Total Assets	12.21B	9.13B	8.00B	7.10B	6.94B
Cash, Cash Equivalents and Short-Term Investments	1.83B	1.23B	788.60M	273.20M	447.10M
Total Debt	3.40B	3.32B	3.13B	3.37B	3.13B
Total Liabilities	8.27B	6.70B	5.98B	5.65B	5.52B
Stockholders Equity	3.94B	2.43B	2.01B	1.44B	1.42B
Cash Flow
Free Cash Flow	1.89B	1.14B	765.90M	-263.80M	126.30M
Operating Cash Flow	2.11B	1.32B	900.50M	-152.80M	210.90M
Investing Cash Flow	-1.50B	-201.70M	-139.10M	-112.10M	-1.22B
Financing Cash Flow	-72.30M	-652.10M	-247.50M	100.20M	914.90M

Vertiv Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 254.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRT, the sentiment is Positive. The current price of 254.89 is above the 20-day moving average (MA) of 228.17, above the 50-day MA of 194.71, and above the 200-day MA of 156.80, indicating a bullish trend. The MACD of 19.39 indicates Negative momentum. The RSI at 71.83 is Negative, neither overbought nor oversold. The STOCH value of 76.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VRT.

Vertiv Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETN	79 Outperform	$146.39B	35.98	21.57%	1.29%	8.24%	6.21%
HUBB	79 Outperform	$27.48B	30.91	25.07%	1.18%	0.82%	16.05%
VRT	78 Outperform	$98.61B	74.71	41.81%	0.11%	28.76%	76.31%
ENS	77 Outperform	$6.12B	20.57	16.74%	0.67%	6.17%	20.86%
NVT	77 Outperform	$19.45B	45.47	12.30%	0.84%	5.31%	5.76%
AEIS	74 Outperform	$12.85B	87.28	11.64%	0.18%	17.18%	235.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Vertiv Holdings Corporate Events

Vertiv Strengthens Liquidity With New Investment-Grade Financing

On March 3, 2026, Vertiv completed its debut investment-grade senior unsecured notes offering, raising $2.1 billion across four tranches with maturities of 10, 20, 30, and 40 years, and closed a new $2.5 billion senior unsecured revolving credit facility. The company used roughly $2.08 billion in net proceeds, along with cash on hand, to fully repay its existing secured term loan and refinance its prior $800 million asset-based revolver, extending debt maturities, releasing associated guarantees and liens, and materially strengthening its liquidity profile.

The new five-year revolving facility, which can be upsized by up to $1 billion and is priced off Vertiv’s credit ratings, replaces the former ABL structure with a larger, ratings-linked unsecured line of credit. These transactions followed February 2026 rating upgrades by S&P and Moody’s that brought Vertiv to investment-grade status at Baa3 / BBB- / BBB-, reinforcing the company’s improved balance sheet, diversifying funding sources and enhancing financial flexibility to support its growth strategy while preserving a strong net leverage position.

The most recent analyst rating on (VRT) stock is a Buy with a $298.00 price target. To see the full list of analyst forecasts on Vertiv Holdings stock, see the VRT Stock Forecast page.

Vertiv Holdings Completes $1 Billion Acquisition of Purge Rite

On December 4, 2025, Vertiv Corporation, a subsidiary of Vertiv Holdings Co, completed the acquisition of Purge Rite Intermediate, LLC for approximately $1.0 billion in cash. This acquisition enhances Vertiv’s capabilities in specialized fluid management services for high-density computing and AI applications, strengthening its position as a leader in next-generation thermal chain services for liquid cooling systems. The integration of PurgeRite’s expertise is expected to improve system performance, reduce downtime risks, and expand service scale, benefiting Vertiv’s global operations and its stakeholders.

The most recent analyst rating on (VRT) stock is a Hold with a $181.00 price target. To see the full list of analyst forecasts on Vertiv Holdings stock, see the VRT Stock Forecast page.