Vertiv stock rises as RBC Capital reiterates Outperform on strong earnings

Published 22/10/2025, 16:06
Vertiv stock rises as RBC Capital reiterates Outperform on strong earnings

Investing.com - Vertiv Holdings Co. (NYSE:VRT), which has delivered an impressive 142% return over the past six months, reported third-quarter earnings that significantly exceeded analyst expectations, with a 16% operating beat compared to RBC Capital’s estimates and a 15% beat versus consensus. According to InvestingPro data, the company maintains strong financial health with a "GREAT" overall score of 3.37 out of 5.

The data center infrastructure provider posted impressive 28.4% organic revenue growth, with the Americas segment showing notable 43% organic growth. Orders grew approximately 60% year-over-year in the quarter, with a book-to-bill ratio of 1.4x, while backlog reached $9.5 billion, up about 30% from the previous year. The company’s strong performance is reflected in its robust revenue growth of 26.3% over the last twelve months, with total revenue reaching $9.1 billion.

Vertiv’s adjusted operating margin expanded 220 basis points year-over-year to 22.3%, despite additional tariff challenges. However, the EMEA segment experienced margin contraction of 710 basis points to 18.8%, which the company attributed to lower operating leverage and operational execution issues.

Following the strong results, Vertiv raised its full-year EPS guidance by approximately 8% at the midpoint, now 7% above consensus estimates. The company also boosted its organic sales outlook to 26%-28%, exceeding the 25.4% consensus forecast.

RBC Capital maintained its Outperform rating and $191.00 price target on Vertiv stock, noting the impressive performance and positive implications for other data center electrical and thermal companies, including nVent, Eaton, and WESCO. While the company shows strong operational metrics, InvestingPro’s Fair Value analysis suggests the stock is currently trading above its intrinsic value. Discover 18 additional key insights and comprehensive analysis available on InvestingPro, including detailed valuation metrics and growth projections.

In other recent news, Vertiv Holdings Co announced the appointment of Craig Chamberlin as its new Executive Vice President and Chief Financial Officer, effective November 10, 2025. Chamberlin joins from Wabtec Corporation and will succeed David Fallon, who will continue as a consultant until December 31, 2026. Additionally, Vertiv plans to showcase AI-ready data center solutions at the 2025 OCP Global Summit, featuring new rack, power, and cooling technologies designed for high-density AI environments. In leadership changes, Paul Ryan has been named as the new EMEA president, effective January 1, 2026, succeeding Karsten Winther.

In analyst activity, CFRA downgraded Vertiv’s stock rating from Strong Buy to Buy, despite raising the price target to $180.00. The firm cited Vertiv’s strong year-to-date performance as a reason for the adjustment. These developments come as Vertiv continues to make strategic changes in its leadership and product offerings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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