Vertiv Holdings Co (VRT)
NYSE:VRT
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Vertiv Holdings
(NYSE:VRT)
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Rating:77Outperform
Price Target:
$266.00
â–²(1.80% Upside)
Action:ReiteratedDate:03/10/26
The score is driven primarily by strong financial performance (notably free cash flow strength and improved margins) and supportive technical momentum (price above key moving averages with positive MACD). This is tempered by premium valuation (P/E ~46) and execution/timing risks highlighted on the earnings call, including regional softness (APAC/EMEA), lumpy/elongated backlog conversion, and higher CapEx needs.
Positive Factors
Free cash flow generation
Sustained high free cash flow (TTM ~$1.9B, ~40% growth) and operating cash flow support durable priorities: capex to scale capacity, dividend and debt reduction, and bolt-on M&A. Strong FCF conversion (~88% of net income) underpins balance sheet flexibility and funding of multi-quarter growth initiatives.
Negative Factors
APAC / China demand softness
Persistent China/APAC weakness reduces a key growth market and can depress regional volume and pricing mix for several quarters. Prolonged softness in China can mute consolidated revenue growth and make margin targets harder to achieve until regional demand normalizes.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Sustained high free cash flow (TTM ~$1.9B, ~40% growth) and operating cash flow support durable priorities: capex to scale capacity, dividend and debt reduction, and bolt-on M&A. Strong FCF conversion (~88% of net income) underpins balance sheet flexibility and funding of multi-quarter growth initiatives.
Read all positive factors
Vertiv Holdings (VRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$99.97B
Dividend Yield0.11%
Average Volume (3M)9.46M
Price to Earnings (P/E)46.4
Beta (1Y)2.46
Revenue Growth28.76%
EPS Growth76.31%
CountryUS
Employees31,000
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)1.36
Shares Outstanding382,598,450
10 Day Avg. Volume13,816,706
30 Day Avg. Volume9,459,450
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)15.69
Price to Sales (P/S)6.05
P/FCF Ratio32.65
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue9.94
Enterprise Value/Gross Profit28.57
Enterprise Value/Ebitda47.12
Forecast
1Y Price Target
$283.50Price Target Upside8.50% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)6.11
Revenue Forecast (FY)$13.61B
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 o...
How the Company Makes Money
Vertiv primarily makes money by selling equipment and related lifecycle services for critical digital infrastructure. A major revenue stream comes from product sales such as uninterruptible power supplies (UPS), switchgear and power distribution u...
Vertiv Holdings Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyVertiv Holdings Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call conveys strong, broad-based operational and financial momentum: very large order intake, a rapidly growing backlog, substantial revenue, margin expansion, excellent cash generation, and confident 2026 guidance. These positives are tempered by regional softness in APAC (notably China) and EMEA, order lumpiness and a need to scale capacity (higher near-term CapEx). The company presents realistic mitigation plans (pricing, supplier cooperation, capacity build-outs) and retains strong balance sheet flexibility.Positive Updates
Massive Order Intake and Backlog Expansion
Q4 organic orders +152% year-over-year and +117% sequentially; trailing twelve-month organic orders +81%. Book-to-bill ~2.9x and backlog at $15 billion, more than double prior year and +57% sequentially.
Negative Updates
APAC and China Weakness
Q4 APAC organic sales down ~9% (APAC sales down ~10% reported) primarily due to muted macro conditions in China. Management expects China's soft growth to persist in 2026 despite strength in India and rest of Asia.
Read all updates
Q4-2025 Updates
Positive
Negative
Massive Order Intake and Backlog Expansion
Q4 organic orders +152% year-over-year and +117% sequentially; trailing twelve-month organic orders +81%. Book-to-bill ~2.9x and backlog at $15 billion, more than double prior year and +57% sequentially.
Read all positive updates
Company Guidance
Vertiv guided to a strong 2026 outlook: adjusted diluted EPS of $6.20 (≈43% growth at the midpoint), net sales of $13.5B (≈28% organic growth), adjusted operating profit of $3.04B and an adjusted operating margin of 22.5% (≈210 bps expansion), and adjusted free cash flow of $2.2B (≈17% growth); regionally they expect The Americas to grow in the high‑30s%, APAC in the mid‑20s%, and EMEA flat to down mid‑single digits. For Q1 2026 the company guided EPS of $0.98 (≈53% growth), net sales of ~$2.6B (≈22% organic), adjusted operating profit of ~$495M and a 19% margin (≈250 bps expansion). Management also plans to step up CapEx to about 3–4% of sales in 2026 (from a historical 2–3%), noted pricing that exceeded inflation in 2025, and cited strong order/backlog visibility (book‑to‑bill ~2.9x, $15B backlog) supporting the plan.Vertiv Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
68
Positive
Cash Flow
86
Very Positive
| 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
Positive
261.29
Price Trends
236.39
Positive
203.65
Positive
173.94
Positive
Market Momentum
4.20
Positive
54.31
Neutral
50.41
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 261.29 is above the 20-day moving average (MA) of 260.16, above the 50-day MA of 236.39, and above the 200-day MA of 173.94, indicating a bullish trend. The MACD of 4.20 indicates Positive momentum. The RSI at 54.31 is Neutral, neither overbought nor oversold. The STOCH value of 50.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VRT.
Vertiv Holdings Risk Analysis
Vertiv Holdings disclosed 44 risk factors in its most recent earnings report. Vertiv Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vertiv Holdings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $26.28B | 26.65 | 25.00% | 1.18% | 0.82% | 16.05% | |
78 Outperform | $6.54B | 15.10 | 16.61% | 0.67% | 6.17% | 20.86% | |
77 Outperform | $99.97B | 46.40 | 40.26% | 0.11% | 28.76% | 76.31% | |
77 Outperform | $19.08B | 34.65 | 19.60% | 0.84% | 5.31% | 5.76% | |
76 Outperform | $140.10B | 30.24 | 21.67% | 1.29% | 8.24% | 6.21% | |
74 Outperform | $12.55B | 53.05 | 11.51% | 0.18% | 17.18% | 235.76% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
VRT
Vertiv Holdings
261.29
197.55
309.92%
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Vertiv Holdings Corporate Events
Dividends
Vertiv Declares Quarterly Dividend, Signaling Financial Confidence
Positive
Mar 6, 2026
On March 6, 2026, Vertiv Holdings Co announced that its board had declared a quarterly cash dividend of $0.0625 per share on its Class A common stock. The dividend will be paid on March 26, 2026, to shareholders of record as of the close of busine...
Business Operations and StrategyPrivate Placements and Financing
Vertiv Strengthens Liquidity With New Investment-Grade Financing
Positive
Mar 4, 2026
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 f...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.