A month has gone by since the last earnings report for Vertiv Holdings Co. (VRT Quick QuoteVRT - Free Report) . Shares have added about 12.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Vertiv due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Vertiv Holdings Co. before we dive into how investors and analysts have reacted as of late.

Vertiv Q4 Earnings Beat Estimates, Net Sales Up Y/Y

Vertiv Holdings reported fourth-quarter 2025 non-GAAP earnings of $1.36 per share, beating the Zacks Consensus Estimate by 5.80%. The figure jumped 37.4% year over year.

Net sales increased 22.7% year over year to $2.88 billion, surpassing the Zacks Consensus Estimate by 0.07%. Net sales on an organic basis increased 19% year over year.

VRT's Prospects Ride on Strong Backlog

In the fourth quarter of 2025, organic orders rose approximately 252% year over year, with the backlog increasing to $15.0 billion, up 109% compared with the fourth quarter of 2024 and up 57% sequentially from the third quarter of 2025. The book-to-bill ratio for the fourth quarter was approximately 2.9x, and trailing 12-month organic orders growth was 81% compared with the prior-year period.

Product revenues (which accounted for 82% of total revenues) increased 23.3% year over year to $2.36 billion. Service revenues (18% of total revenues) increased 20.2% year over year to $519.5 million.

Americas’ revenues increased 50.2% year over year (46% organic) to $1.88 billion and accounted for 65.5% of total revenues. Product revenues increased 54.3% year over year (51.2% organic) to $1.56 billion. Service & spares revenues increased 33% year over year (25.2% organic) to $321.9 million in the reported quarter.

Asia and Pacific (APAC) revenues decreased 9.6% year over year (9.3% organic decline) to $492 million and accounted for 17.1% of total revenues. Product revenues increased 13.7% year over year (13.5% organic) to $360.4 million. Service & spares revenues increased 4% year over year (4.5% organic) to $131.6 million in the reported quarter.

Europe, Middle East, and Africa (EMEA) revenues decreased 8.2% year over year (14.1% organic) to $501.7 million and accounted for 17.4% of total revenues. Product revenues decreased 13.3% year over year (18.2% organic decline) to $384.6 million. Service & spares revenues increased 13.7% year over year (3.3% organic) to $117.1 million in the fourth quarter of 2025.

VRT’s Operating Details

Selling, general, and administrative (SG&A) expenses increased 27.7% year over year to $461.6 million. As a percentage of sales, SG&A expenses decreased 60 basis points (bps) year over year to 16%.

Adjusted operating profit jumped 32.5% year over year to $668.1 million. The fourth-quarter non-GAAP operating margin was 23.2%, up 170 bps year over year.

Americas' adjusted operating profit surged 76.7% year over year to $568.2 million. EMEA’s adjusted operating profit decreased 23.6% year over year to $111 million. APAC’s adjusted operating profit decreased 28.8% year over year to $48.7 million.

VRT’s Balance Sheet Remains Strong

As of Dec. 31, 2025, cash and cash equivalents totaled $1.72 billion compared with $1.39 billion as of Sept. 30, 2025.

Long-term debt at the end of the fourth quarter was $2.892.1 billion, down from $2.897 billion reported in the previous quarter.

Cash flow from operating activities was $1 billion for the reported quarter, up from $508.7 million in the prior quarter. Free cash flow was $909.9 million for the fourth quarter.

VRT Raises 2026 Guidance

For 2026, revenues are now expected to be between $13.25 billion and $13.75 billion. Organic net sales growth is expected to be between 27% and 29%.

Vertiv expects adjusted operating profit between $2.98 billion and $3.10 billion. Operating margin is expected to be in the 22%-23% range.

VRT expects 2026 non-GAAP earnings between $5.97 and $6.07 per share. 

Free cash flow for 2026 is expected to be between $2.1 billion and $2.3 billion.

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.

Vertiv expects adjusted operating profit between $475 million and $515 million. Operating margin is expected to be in the 18.5%-19.5% range.

VRT expects first-quarter 2026 non-GAAP earnings per share between 95 cents and $1.01 per share.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in estimates revision.

VGM Scores

At this time, Vertiv has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Vertiv has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Vertiv is part of the Zacks Computers - IT Services industry. Over the past month, Jack Henry (JKHY Quick QuoteJKHY - Free Report) , a stock from the same industry, has gained 5.6%. The company reported its results for the quarter ended December 2025 more than a month ago.

Jack Henry reported revenues of $619.33 million in the last reported quarter, representing a year-over-year change of +7.9%. EPS of $1.72 for the same period compares with $1.34 a year ago.

For the current quarter, Jack Henry is expected to post earnings of $1.43 per share, indicating a change of -5.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.7% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Jack Henry. Also, the stock has a VGM Score of C.