Vertiv Soars 49% YTD: Is This the Right Time to Buy the Stock?
Vertiv VRT shares have gained 48.9% in the year-to-date period, outperforming the broader Zacks Computer and Technology sector’s increase of 22.4%. The Zacks Computers - IT Services industry declined 18.8% in the same time frame.
The company’s shares have also outperformed its peers, which include Super Micro Computer SMCI, Broadcom AVGO and Amphenol APH. All three companies are expanding their capabilities in the AI and data center infrastructure markets. Shares of Super Micro Computer, Broadcom, and Amphenol have gained 40.3%, 1.4%, and 24.7%, respectively.
The outperformance of VRT stock can be attributed to its rich partner base and extensive product portfolio spanning thermal systems, liquid cooling, UPS, switchgear, busbars, and modular solutions. Vertiv remains leveraged to rising data center power and thermal needs as AI deployments drive higher infrastructure density and faster build cycles. These factors are helping VRT to fend off its competitors like Super Micro Computer, Broadcom, and Amphenol.
VRT Stock Performance
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Vertiv Capitalizes on Strong AI Data Center Growth
Vertiv is benefiting from strong demand for AI infrastructure as hyperscalers, colocation providers, neocloud operators and enterprises continue to expand data-center capacity. The company’s global pipeline remains robust across its core markets, particularly in the Americas and APAC regions. In the second quarter of 2026, net sales increased 24% year over year, with the Americas and APAC both growing 29%. EMEA also returned to positive net sales growth.
Acquisitions have further strengthened Vertiv’s data center portfolio. The recent acquisitions of ThermoKey and Strategic Thermal Labs have expanded Vertiv’s capabilities in heat rejection and high-density thermal management, respectively. These moves enhance Vertiv’s ability to offer comprehensive solutions across the thermal spectrum from heat rejection to direct-to-chip cooling. In the second quarter of 2026, acquisitions contributed 5% to revenues.
Further expanding its portfolio, Vertiv recently agreed to acquire King Environmental Services (“KES”), a Europe-based provider of fluid management, commissioning and load-testing services for high-density, liquid-cooled data centers. The acquisition is expected to expand Vertiv’s thermal management services across Europe, the Middle East and Africa and strengthen support for AI and high-density infrastructure.
KES brings specialized capabilities in system preparation, performance validation, monitoring, maintenance and lifecycle optimization. The transaction, expected to close in the fourth quarter of 2026, builds on Vertiv’s North American fluid-management presence established through its PurgeRite acquisition.
VRT Benefits From Margin Gains
Vertiv is benefiting from significant margin gains. In the second quarter of 2026, the company reported an adjusted operating margin of 22.6%, a substantial increase of 410 basis points year over year and well above its previous guidance. This margin expansion was driven by disciplined operational execution, productivity improvements and favorable price-cost dynamics, partially offset by tariff impacts.
Margin improvement was broad-based across Vertiv’s geographic segments. In the Americas, strong commercial execution and operational performance drove adjusted operating margin expansion of 360 basis points year over year. APAC margins improved 270 basis points as strong revenue growth generated operating leverage, while EMEA recorded a 380-basis-point improvement, aided by better operational execution. The broad-based gains indicate that Vertiv’s profitability improvement extends beyond any single region.
Vertiv expects margin momentum to continue in the second half of 2026. For the third quarter of 2026, adjusted operating profit is projected to be between $898 million and $938 million, with an adjusted operating margin of 24% to 25%, supported by organic growth, operating leverage and productivity. Regional manufacturing, supply chain actions and disciplined capacity investment remain key to sustaining the margin trajectory as projects scale. Management raised 2026 adjusted operating margin guidance to 23.3%-24.3% and expects pricing to exceed inflation, including current tariffs and countermeasures.
VRT Initiates Positive Q3 2026 Guidance
Vertiv’s expanding AI data center footprint and strategic acquisitions signal further upside potential. For the third quarter of 2026, Vertiv expects net sales of $3.65 billion to $3.85 billion and adjusted earnings of $1.77 to $1.83 per share.
The Zacks Consensus Estimate for Vertiv’s third-quarter 2026 revenues is pegged at $3.77 billion, suggesting growth of 40.79% year over year.
The Zacks Consensus Estimate for third-quarter 2026 earnings is currently pegged at $1.83 per share, up by 0.75% over the past 30 days. The figure indicates a year-over-year increase of 47.58%.
Vertiv Holdings Co. Price and Consensus
Vertiv Holdings Co. price-consensus-chart | Vertiv Holdings Co. Quote
Vertiv Stock Is Trading at a Premium
Vertiv is currently overvalued, as suggested by a Value Score of D.
In terms of the trailing 12-month Price/Book, Vertiv is currently trading at 19.53X compared with the broader Computer and Technology sector’s 9.21X.
VRT Valuation
Image Source: Zacks Investment Research
Conclusion
Vertiv is benefiting from its strong portfolio and rich partner base, which are driving order growth. These factors justify the company’s premium valuation.
Vertiv stock currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
