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Vertiv Holdings
(NYSE:VRT)
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Rating:70Outperform
Price Target:
$297.00
â–²(2.29% Upside)
Action:Reiterated
Date:08/05/26
The score is driven primarily by strong financial performance (material margin expansion and very strong free cash flow) and a very upbeat earnings update with raised 2026 guidance. These positives are tempered by weaker near-term technical momentum (price below key short/intermediate moving averages with negative MACD) and a demanding valuation (P/E ~53.4 with a modest dividend yield).
Positive Factors
Free Cash Flow Strength
Sustained FCF near $3B and high conversion (~0.89x) supports durable reinvestment in capacity, M&A, dividends and debt reduction. Strong cash conversion improves financial optionality and resilience through cycles, enabling strategic investments without relying on external capital.
Negative Factors
Project Timing Variability
Milestone-based project revenue and multi-phase execution drive durable quarter-to-quarter variability, complicating forecasting and working-capital planning. Persistent timing volatility can mask underlying demand trends and raise the operational burden of coordination across suppliers and plants.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Sustained FCF near $3B and high conversion (~0.89x) supports durable reinvestment in capacity, M&A, dividends and debt reduction. Strong cash conversion improves financial optionality and resilience through cycles, enabling strategic investments without relying on external capital.
Read all positive factors
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 (VRT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$111.02B
Dividend Yield0.08%
Average Volume (3M)5.63M
Price to Earnings (P/E)63.5
Beta (1Y)2.30
Revenue Growth26.23%
EPS Growth111.00%
CountryUS
Employees34,000
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)4.52
Shares Outstanding384,988,160
10 Day Avg. Volume3,890,492
30 Day Avg. Volume5,633,061
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)15.69
Price to Sales (P/S)6.05
P/FCF Ratio32.77
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$348.87Price Target Upside20.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)6.71
Revenue Forecast (FY)$14.01B
Vertiv Holdings Business Overview & Revenue Model
Company Description
Vertiv Holdings Co, headquartered in Columbus, Ohio, is a global provider of essential digital infrastructure technologies and comprehensive lifecycle services. The company specializes in the design, manufacturing, and servicing of critical system...
How the Company Makes Money
Vertiv primarily makes money by selling critical infrastructure equipment and associated services to customers that operate always-on computing and network environments (notably data centers and telecom/network operators, as well as certain commer...
Vertiv Holdings Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
Overall the call was strongly positive: Vertiv delivered robust top-line growth, sizable margin expansion, materially higher profits and exceptional free cash flow, and the company upgraded guidance across all key metrics. Management highlighted broad-based demand, capacity investments, strategic M&A, and multiple technology validations (including early 800V DC work). The primary negatives are timing variability from complex, multi-phase projects and supply-chain interdependencies (causing some Q2 revenue pushouts), plus localized EMEA organic weakness and tariff/capex/tax headwinds. Management presented these as manageable operational issues with a clear learning curve and retained confidence in H2 execution.Positive Updates
Strong Revenue Growth and Upgraded Guidance
Q2 net sales of $3.274B, up 24% year-over-year; organic net sales growth of 18% (additional 5% from acquisitions, 1% FX). Company raised full-year 2026 net sales guidance to $14.0B (up 37% versus 2025 and +$250M vs prior guidance). Q3 midpoints also call for ~40% YoY sales growth.
Negative Updates
Timing Shifts in Q2 Revenue from Large Projects
Company reported minor timing shifts in Q2 revenue driven by multi-phase project execution and temporary supply-chain congestion; management noted some revenue pushed into H2. Analysts on the call referenced a roughly $100M miss to Street estimates (questioned by an analyst), reflecting quarter-to-quarter timing volatility.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth and Upgraded Guidance
Q2 net sales of $3.274B, up 24% year-over-year; organic net sales growth of 18% (additional 5% from acquisitions, 1% FX). Company raised full-year 2026 net sales guidance to $14.0B (up 37% versus 2025 and +$250M vs prior guidance). Q3 midpoints also call for ~40% YoY sales growth.
Read all positive updates
Company Guidance
Vertiv raised 2026 guidance across the board: full‑year net sales are now $14.0B (a $250M raise; +37% y/y) with organic growth ~31% (plus 5% from M&A and 1% FX), adjusted diluted EPS $6.70 (range $6.65–$6.75; +60% y/y; +$0.35 vs prior guide), adjusted operating profit $3.325B (+~59% y/y; +$125M vs prior), adjusted operating margin 23.8% (≈+340 bps y/y; +50 bps vs prior), adjusted free cash flow $2.5B (+182% y/y), capex at the high end (~4% of 2026 sales), and a Q2 net cash position with net leverage of -0.1x; Q3 guidance (midpoints) calls for net sales ~$3.75B (+40% y/y; organic ~35% with +5% acquisitions), adjusted operating profit ~$918M and margin ~24.5% (+220 bps y/y), and adjusted diluted EPS ~$1.80 (+45% y/y).Vertiv Holdings Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.48B | 10.23B | 8.01B | 6.86B | 5.69B | 5.00B |
| Gross Profit | 4.31B | 3.51B | 2.75B | 2.22B | 1.40B | 1.38B |
| EBITDA | 2.52B | 2.14B | 1.19B | 1.02B | 616.70M | 483.80M |
| Net Income | 1.73B | 1.33B | 495.80M | 460.20M | 76.60M | 119.60M |
Balance Sheet | ||||||
| Total Assets | 15.90B | 12.21B | 9.13B | 8.00B | 7.10B | 6.94B |
| Cash, Cash Equivalents and Short-Term Investments | 3.11B | 1.83B | 1.23B | 788.60M | 273.20M | 447.10M |
| Total Debt | 3.26B | 3.40B | 3.32B | 3.13B | 3.37B | 3.13B |
| Total Liabilities | 11.14B | 8.27B | 6.70B | 5.98B | 5.65B | 5.52B |
| Stockholders Equity | 4.76B | 3.94B | 2.43B | 2.01B | 1.44B | 1.42B |
Cash Flow | ||||||
| Free Cash Flow | 2.92B | 1.89B | 1.14B | 765.90M | -263.80M | 126.30M |
| Operating Cash Flow | 3.35B | 2.11B | 1.32B | 900.50M | -152.80M | 210.90M |
| Investing Cash Flow | -2.10B | -1.50B | -201.70M | -139.10M | -112.10M | -1.22B |
| Financing Cash Flow | -42.40M | -72.30M | -652.10M | -247.50M | 100.20M | 914.90M |
Vertiv Holdings Technical Analysis
Positive
290.36
Price Trends
297.49
Negative
303.72
Negative
250.68
Positive
Market Momentum
-5.79
Negative
51.55
Neutral
86.56
Negative
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 290.36 is above the 20-day moving average (MA) of 275.82, below the 50-day MA of 297.49, and above the 200-day MA of 250.68, indicating a neutral trend. The MACD of -5.79 indicates Negative momentum. The RSI at 51.55 is Neutral, neither overbought nor oversold. The STOCH value of 86.56 is Negative, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $27.10B | 29.92 | 23.65% | 1.12% | 10.61% | 9.52% | |
76 Outperform | $178.65B | 45.98 | 19.56% | 1.06% | 15.53% | -1.21% | |
73 Outperform | $6.73B | 20.67 | 18.48% | 0.55% | 3.73% | 7.60% | |
72 Outperform | $27.70B | 46.07 | 15.76% | 0.55% | 46.19% | 3.13% | |
70 Outperform | $111.02B | 63.51 | 42.11% | 0.08% | 26.23% | 111.00% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $13.51B | 57.01 | 15.93% | 0.13% | 24.58% | 159.06% |
* Industrials Sector Average
VRT
Vertiv Holdings
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Vertiv Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
Vertiv Shareholders Endorse Board, Pay and Auditor at Meeting
Positive
Jun 18, 2026
At its virtual 2026 Annual Meeting of Stockholders held on June 17, 2026, Vertiv Holdings Co reported strong shareholder participation, with 86.05% of outstanding Class A shares represented online or by proxy, and confirmed the election of eleven ...
Dividends
Vertiv Declares Quarterly Cash Dividend on Class A Shares
Positive
Jun 3, 2026
On June 3, 2026, Vertiv Holdings Co announced that its board declared a quarterly cash dividend of $0.0625 per share on its Class A common stock. The dividend will be paid on June 25, 2026, to shareholders of record as of the close of business on ...
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.