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Vertiv Gains From Strong Orders: Is the Growth Thesis Strengthening?
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Key Takeaways
Vertiv posted 252% Q4 organic order growth, with backlog jumping to $15B.
VRT saw 81% organic order growth in 12 months, with a 2.9 book-to-bill ratio in Q4 2025.
VRT expects Q1 2026 sales of $2.5B-$2.7B, with organic growth of 18%-26%.
Vertiv (VRT - Free Report) is benefiting from strong order growth and a robust pipeline, reinforcing its position as a leader in the data center and AI infrastructure market. In the trailing 12 months, organic orders grew approximately 81%, with a book-to-bill of 2.9 times for the fourth quarter of 2025, indicating a strong prospect.
In the fourth quarter of 2025, organic orders rose approximately 252% year over year, with the backlog increasing to $15 billion, up 109% compared with the fourth quarter of 2024 and up 57% sequentially from the third quarter of 2025. This growth is primarily driven by the rapid adoption of AI and the increasing need for data centers to support the digital transformation.
The company is focusing on innovative solutions that cater to the growing demand for AI-driven infrastructure and advanced cooling technologies. With products like OneCore and SmartRun, Vertiv is delivering end-to-end data center solutions that simplify operations, enhance scalability, and reduce deployment time for customers. These offerings demonstrate Vertiv’s commitment to addressing the evolving needs of the industry.
Vertiv is benefiting from its strong portfolio, which will continue to benefit the company’s top-line growth. For first-quarter 2026, revenues are expected to be between $2.5 billion and $2.7 billion. Organic net sales are expected to increase in the 18% to 26% range.
VRT Suffers From Stiff Competition
Vertiv’s AI infrastructure solutions face increasing competition from Hewlett Packard Enterprise (HPE - Free Report) and Super Micro Computer (SMCI - Free Report) . Both Hewlett-Packard Enterprise and Super Micro Computer are expanding their capabilities to serve hyperscale and enterprise AI data center deployments.
Super Micro Computer is strengthening its position with end-to-end AI rack-scale systems that integrate compute, networking, storage, and liquid cooling. Hewlett-Packard Enterprise is expanding its footprint through HPE Cray and ProLiant servers, bundled with liquid-cooled solutions and high-speed interconnects.
Vertiv’s Share Price Performance, Valuation, and Estimates
VRT’s shares have gained 72.8% in the trailing six-month period. The broader Zacks Computer & Technology sector has appreciated 7.8%, while the Zacks Computers - IT Services industry has plunged 17.7% in the same period.
VRT Stock's Performance
Image Source: Zacks Investment Research
Vertiv stock is trading at a premium, with a trailing 12-month Price/Book of 25.56X compared with the Computer and Technology sector’s 10.36X. VRT has a Value Score of F.
VRT's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $1 per share, which has increased by a couple of pennies over the past 30 days. This indicates a 56.25% increase from the reported figure of 2024.
View the Zacks #1 Rank List
Image: Bigstock
Vertiv Gains From Strong Orders: Is the Growth Thesis Strengthening?
Key Takeaways
Vertiv (VRT - Free Report) is benefiting from strong order growth and a robust pipeline, reinforcing its position as a leader in the data center and AI infrastructure market. In the trailing 12 months, organic orders grew approximately 81%, with a book-to-bill of 2.9 times for the fourth quarter of 2025, indicating a strong prospect.
In the fourth quarter of 2025, organic orders rose approximately 252% year over year, with the backlog increasing to $15 billion, up 109% compared with the fourth quarter of 2024 and up 57% sequentially from the third quarter of 2025. This growth is primarily driven by the rapid adoption of AI and the increasing need for data centers to support the digital transformation.
The company is focusing on innovative solutions that cater to the growing demand for AI-driven infrastructure and advanced cooling technologies. With products like OneCore and SmartRun, Vertiv is delivering end-to-end data center solutions that simplify operations, enhance scalability, and reduce deployment time for customers. These offerings demonstrate Vertiv’s commitment to addressing the evolving needs of the industry.
Vertiv is benefiting from its strong portfolio, which will continue to benefit the company’s top-line growth. For first-quarter 2026, revenues are expected to be between $2.5 billion and $2.7 billion. Organic net sales are expected to increase in the 18% to 26% range.
VRT Suffers From Stiff Competition
Vertiv’s AI infrastructure solutions face increasing competition from Hewlett Packard Enterprise (HPE - Free Report) and Super Micro Computer (SMCI - Free Report) . Both Hewlett-Packard Enterprise and Super Micro Computer are expanding their capabilities to serve hyperscale and enterprise AI data center deployments.
Super Micro Computer is strengthening its position with end-to-end AI rack-scale systems that integrate compute, networking, storage, and liquid cooling. Hewlett-Packard Enterprise is expanding its footprint through HPE Cray and ProLiant servers, bundled with liquid-cooled solutions and high-speed interconnects.
Vertiv’s Share Price Performance, Valuation, and Estimates
VRT’s shares have gained 72.8% in the trailing six-month period. The broader Zacks Computer & Technology sector has appreciated 7.8%, while the Zacks Computers - IT Services industry has plunged 17.7% in the same period.
VRT Stock's Performance
Image Source: Zacks Investment Research
Vertiv stock is trading at a premium, with a trailing 12-month Price/Book of 25.56X compared with the Computer and Technology sector’s 10.36X. VRT has a Value Score of F.
VRT's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $1 per share, which has increased by a couple of pennies over the past 30 days. This indicates a 56.25% increase from the reported figure of 2024.
Vertiv Holdings Co. Price and Consensus
Vertiv Holdings Co. price-consensus-chart | Vertiv Holdings Co. Quote
Vertiv currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.