Key Takeaways
- Vertiv stock is up 15% in the past week after third-quarter sales rose 61% and organic orders more than doubled.
- The results ease October’s worries over how Meta pays for the AI build-out, though GE Vernova fell the same day despite its own beat.
- Management’s new 2026 earnings guidance tops Wall Street’s estimates, which look set to rise.
- The stock still looks like a buy, but the guidance needs 50% organic sales growth in the fourth quarter.
Vertiv (VRT) stock is up 15% in the past week after a third-quarter beat and another raise to guidance.
That’s a turnaround from Oct. 22, when AI power stocks sold off again after Meta Platforms (META) reported negative free cash flow the evening before. GE Vernova (GEV) sank too, and it fell again on Oct. 28 despite its own beat.
TIKR tracks 30 analysts on Vertiv. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on Vertiv, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Vertiv’s Analyst Ratings
Orders doubled, and the guide went up again
After a second-quarter sales miss, delivery was the big question going in. Vertiv answered it:
- Sales rose 61% to $4.31 billion (55% organic), against $3.76 billion expected.
- Adjusted EPS rose 78% to $2.21, against $1.82 expected.
- Organic orders more than doubled from a year earlier.
- Full-year sales guidance rose $650 million, to $14.45-$14.85 billion.
Meta’s capex is Vertiv’s demand
Meta’s third-quarter capex of $34.9 billion topped the $32.8 billion its operations brought in, and it raised the low end of its 2026 capex range to $135 billion.
But that spending is what fills Vertiv’s order book. Meta raised its floor in the same quarter its free cash flow went negative, and Vertiv’s doubled orders show that money flowing through. The question is how long Meta can outspend its cash flow.
GE Vernova shows the payoff isn’t automatic. Its revenue rose 27% to $12.6 billion (18% organic), and orders hit $29 billion, up 96% organically. Its stock fell anyway. My read: investors want demand that’s already in sales, and Vertiv’s organic growth is three times faster. Does GE Vernova’s $197 billion backlog get the same credit as it ships?
Still a buy after the jump
Wall Street’s $6.73 consensus for 2026 adjusted EPS now sits below management’s new $7.10-$7.20 guidance. Analysts see normalized EPS reaching $9.19 in 2027 and $11.76 in 2028:
With 2026 guided above consensus, I’d expect 2027 and 2028 to rise too.
Before the report, Vertiv traded at 26x forward earnings, just under its 27x five-year average and far below May’s 55x:
After the jump, it’s closer to 31x. Still, the $333 consensus target sits about 37% above the last close, and the stock is 36% below its 52-week high.
My take: Yes, doubled orders are that good. Vertiv isn’t cheap anymore, but with estimates headed higher, it’s still a buy.
Of course, a 50% fourth quarter is a lot to deliver. The next read comes at Baird’s conference on Nov. 10.
So what is Vertiv stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
