We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can NVT's AI Data Center Exposure Accelerate its Revenue Growth?
Read MoreHide Full Article
Key Takeaways
NVT's infrastructure organic sales grew more than 70%, driven primarily by data center demand.
New products contributed approximately 30 percentage points to sales growth, with 24 launched in Q3.
NVT raised 2026 organic sales growth guidance to 38-39% and adjusted EPS to $5.36-$5.39.
nVent Electric (NVT - Free Report) is benefiting from rising investments in AI data centers, which are increasing demand for power distribution and cooling solutions. The company's third-quarter 2026 results reflected this trend, with infrastructure organic sales growing more than 70% year over year. Data centers were the primary driver of this growth. Infrastructure has also become a larger part of NVT's business, accounting for nearly 60% of sales year to date. The company expects this business to continue delivering strong growth in 2027, supported by data center expansion and rising power requirements.
To address this demand, NVT is expanding its portfolio of power and cooling products. Its modular liquid cooling platform has started receiving customer orders and is designed to serve different types of data center customers. The company is also developing solutions for higher-voltage power systems. During the third-quarter earnings call, management highlighted that its new products contributed approximately 30 percentage points to sales growth. NVT also launched 24 new products during the quarter, with a focus on high-growth markets, such as data centers and power utilities.
The acquisition of Maverick Power further expands NVT's exposure to AI data centers. Maverick Power brings power distribution products, including low-and medium-voltage switchgear and switchboards, along with an 800VDC power rack designed for high-density AI computing. The acquisition strengthens NVT's ability to offer combined power and cooling solutions. Following the deal, the company estimates that its total data center opportunity has increased to approximately $2 million per megawatt.
Strong demand has also supported NVT's financial outlook. The company raised its 2026 organic sales growth guidance to 38-39% compared with its earlier forecast of 32-34%. Adjusted EPS guidance was also increased to $5.36-$5.39 from $5.00-$5.10. To support future growth, NVT is investing in additional manufacturing capacity, including new facilities in Arizona and Blaine. Overall, growing AI data center investments, an expanded power and cooling portfolio and capacity additions could support NVT's revenue growth in the coming years.
How Do Competitors Fare Against NVT
NVT faces stiff competition from Vertiv (VRT - Free Report) and Eaton Corporation (ETN - Free Report) , which are also expanding their power and cooling offerings for AI data centers.
Vertiv offers power management, thermal management and rack infrastructure solutions. In the third quarter of 2026, Vertiv's net sales increased 61% year over year, while organic orders grew more than 100%. The company is expanding its liquid cooling capabilities and developing 800V DC power solutions to support next-generation AI data centers. These investments could strengthen Vertiv's position in integrated data center infrastructure and increase competition for NVT.
Eaton is also expanding its presence in the data center market through its electrical power distribution and thermal management offerings. Its portfolio includes transformers, switchgear, circuit breakers and UPS systems. In the third quarter of 2026, Eaton's data center sales increased 65% year over year, while orders grew 101%. Eaton's expanded portfolio allows it to offer both power distribution and cooling solutions to data center customers, which helps the company compete more effectively with NVT for large AI data center projects.
From a valuation standpoint, NVT trades at a forward price-to-sales ratio of 2.34X, lower than the industry’s average of 2.95X. NVT has a Value Score of C.
NVT’s Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for nVent Electric’s 2026 and 2027 earnings per share (EPS) implies year-over-year growth of 59.7% and 27.4%, respectively. EPS estimates for 2026 and 2027 have both been revised upward over the past seven days.
View the Zacks #1 Rank List
Image: Bigstock
Can NVT's AI Data Center Exposure Accelerate its Revenue Growth?
Key Takeaways
nVent Electric (NVT - Free Report) is benefiting from rising investments in AI data centers, which are increasing demand for power distribution and cooling solutions. The company's third-quarter 2026 results reflected this trend, with infrastructure organic sales growing more than 70% year over year. Data centers were the primary driver of this growth. Infrastructure has also become a larger part of NVT's business, accounting for nearly 60% of sales year to date. The company expects this business to continue delivering strong growth in 2027, supported by data center expansion and rising power requirements.
To address this demand, NVT is expanding its portfolio of power and cooling products. Its modular liquid cooling platform has started receiving customer orders and is designed to serve different types of data center customers. The company is also developing solutions for higher-voltage power systems. During the third-quarter earnings call, management highlighted that its new products contributed approximately 30 percentage points to sales growth. NVT also launched 24 new products during the quarter, with a focus on high-growth markets, such as data centers and power utilities.
The acquisition of Maverick Power further expands NVT's exposure to AI data centers. Maverick Power brings power distribution products, including low-and medium-voltage switchgear and switchboards, along with an 800VDC power rack designed for high-density AI computing. The acquisition strengthens NVT's ability to offer combined power and cooling solutions. Following the deal, the company estimates that its total data center opportunity has increased to approximately $2 million per megawatt.
Strong demand has also supported NVT's financial outlook. The company raised its 2026 organic sales growth guidance to 38-39% compared with its earlier forecast of 32-34%. Adjusted EPS guidance was also increased to $5.36-$5.39 from $5.00-$5.10. To support future growth, NVT is investing in additional manufacturing capacity, including new facilities in Arizona and Blaine. Overall, growing AI data center investments, an expanded power and cooling portfolio and capacity additions could support NVT's revenue growth in the coming years.
How Do Competitors Fare Against NVT
NVT faces stiff competition from Vertiv (VRT - Free Report) and Eaton Corporation (ETN - Free Report) , which are also expanding their power and cooling offerings for AI data centers.
Vertiv offers power management, thermal management and rack infrastructure solutions. In the third quarter of 2026, Vertiv's net sales increased 61% year over year, while organic orders grew more than 100%. The company is expanding its liquid cooling capabilities and developing 800V DC power solutions to support next-generation AI data centers. These investments could strengthen Vertiv's position in integrated data center infrastructure and increase competition for NVT.
Eaton is also expanding its presence in the data center market through its electrical power distribution and thermal management offerings. Its portfolio includes transformers, switchgear, circuit breakers and UPS systems. In the third quarter of 2026, Eaton's data center sales increased 65% year over year, while orders grew 101%. Eaton's expanded portfolio allows it to offer both power distribution and cooling solutions to data center customers, which helps the company compete more effectively with NVT for large AI data center projects.
NVT's Price Performance, Valuation & Estimates
Shares of nVent Electric have jumped 12.2% year to date against the Zacks Electronics - Miscellaneous Components industry’s decline of 30.9%.
nVent Electric’s YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, NVT trades at a forward price-to-sales ratio of 2.34X, lower than the industry’s average of 2.95X. NVT has a Value Score of C.
NVT’s Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for nVent Electric’s 2026 and 2027 earnings per share (EPS) implies year-over-year growth of 59.7% and 27.4%, respectively. EPS estimates for 2026 and 2027 have both been revised upward over the past seven days.
Image Source: Zacks Investment Research
NVT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.