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Vertiv Rises 11% Year to Date: Buy, Sell, or Hold the Stock?

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Key Takeaways

  • VRT shares are up 10.6% YTD, beating IT Services peers but lagging the tech sector overall.
  • Backlog climbed 21% year over year to $8.5B, with Q2 book-to-bill at 1.2 signaling strong demand.
  • 2025 revenue outlook raised to $9.93B-$10.08B with organic growth of 23%-25% and EPS of $3.75-$3.85.

Vertiv (VRT - Free Report) shares have gained 10.6% year to date, underperforming the broader Zacks Computer and Technology sector’s increase of 14.1%. The underperformance can be attributed to a challenging macroeconomic environment, including the uncertainty created by higher tariffs, which does not bode well for Vertiv.

However, the company has outperformed the Zacks Computers - IT Services industry, which has declined 15.3% in the same time frame. Vertiv shares have also outperformed its peer, Hewlett-Packard (HPE - Free Report) , which is expanding its capabilities to serve hyperscale and enterprise AI data center deployments.  Hewlett-Packard shares have gained 8.5% in the year-to-date period.

VRT Stock's Performance

Zacks Investment Research
Image Source: Zacks Investment Research

Vertiv benefits from an extensive product portfolio that spans thermal systems, liquid cooling, UPS, switchgear, busbars and modular solutions, which is noteworthy. In the trailing 12 months, organic orders grew approximately 11%, with a book-to-bill of 1.2 times for the second quarter of 2025, indicating a strong prospect. Backlog grew 7% sequentially and 21% year over year to $8.5 billion.

Vertiv Benefits From Expanding Portfolio

Vertiv is a leading provider of thermal and power management solutions for data centers that consume immense amounts of power. The increasing complexity of AI hardware and edge computing further increases the demand for power. Vertiv’s energy-efficient power and cooling solutions play a critical role in this aspect.

Building on this momentum, in August, Vertiv announced the global launch of Vertiv OneCore, a scalable prefabricated data center solution. It integrates power, thermal, and IT infrastructure into a single, factory-assembled system, accelerating high-density deployments and reducing on-site complexity.

Acquisitions have played an important role in expanding Vertiv’s footprint. The company acquired Belgium-based Waylay NV in August to strengthen its AI-driven monitoring, automation, and control capabilities for power and cooling systems in data centers.

Vertiv Benefits From Rich Partner Base

Vertiv’s rich partner base, which includes Ballard Power Systems, Compass Datacenters, NVIDIA (NVDA - Free Report) , Oklo, Intel, ZincFive, and Tecogen (TGEN - Free Report) , has been a major growth driver.

In June 2025, Vertiv announced its energy-efficient 142KW cooling and power reference architecture for the NVIDIA GB300 NVL72 platform. Vertiv solutions are available as SimReady 3D assets in the NVIDIA Omniverse Blueprint for AI factory design and operations.

Vertiv’s collaboration with Tacogen has been noteworthy. The collaboration with Tecogen provides data centers worldwide with advanced natural gas-powered chiller technology. This technology addresses power constraints, enabling the deployment of AI at scale. Tecogen’s proven 40-year expertise in clean energy solutions enhances Vertiv’s portfolio of cooling solutions.

VRT Raises 2025 Guidance

Vertiv is benefiting from its strong portfolio and rich partner base, which will continue to benefit the company’s top-line growth.

For 2025, revenues are now expected to be between $9.925 billion and $10.075 billion. Organic net sales growth is expected to be between 23% and 25%.

VRT expects 2025 non-GAAP earnings between $3.75 and $3.85 per share. 

For third-quarter 2025, revenues are expected to be between $2.510 billion and $2.590 billion. Organic net sales are expected to increase in the 20% to 24% range.

VRT expects third-quarter 2025 non-GAAP earnings between 94 cents and $1.00 per share.

VRT’s Earnings Estimates Revisions Are Steady

The Zacks Consensus Estimate for third-quarter 2025 earnings is currently pegged at 99 cents per share, which has remained unchanged over the past 30 days. The figure indicates a year-over-year increase of 30.26%.

The Zacks Consensus Estimate for Vertiv’s 2025 revenues is pegged at $9.97 billion, suggesting growth of 24.47% year over year.

The Zacks Consensus Estimate for 2025 earnings is currently pegged at $3.82 per share, which has increased 0.79% over the past 30 days. This indicates a 34.04% increase from the 2024 reported figure.

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 15.36X, compared with the broader Computer and Technology sector’s 10.37X and Hewlett Packard’s 1.27X.

VRT Valuation

Zacks Investment Research
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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