Key Stats for VRT Stock
- Price Change for VRT stock: +24.5%
- VRT Share Price as of Feb. 11: $249
- 52-Week High: $250
- VRT Stock Price Target: $205
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What Happened?
Vertiv Holdings Co (VRT) stock surged after the company reported fourth-quarter earnings that significantly exceeded analyst expectations, driven by accelerating demand from AI-focused data center customers and continued strength across its power and thermal management platforms.
Adjusted EPS came in at $1.24, which exceeded consensus estimates of about $0.99, as strong operating leverage anda higher-margin project mix drove profitability well above expectations.
Revenue totaled $2.68 billion for the quarter, which beat analyst estimates by about 3.2%, and represented growth of roughly 29% year over year as hyperscale and colocation customers continued expanding capacity.
EBITDA rose to $623 million, exceeding estimates by more than 14%, while EBITDA margins expanded by over 230 basis points year over year as pricing discipline and scale efficiencies continued to improve.
Management highlighted sustained order momentum tied to AI compute density, liquid cooling adoption, and power infrastructure upgrades, which continue to drive both near-term revenue and long-term backlog visibility.
The company also reaffirmed its full-year outlook, guiding for revenue of roughly $10.2 billion and normalized EPS above $4, reinforcing confidence in sustained earnings growth.
These results helped explain the sharp rally in the stock following the report.
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What the Market Is Telling Us About VRT Stock
The strong rally in Vertiv stock suggests investors are increasingly confident in the company’s ability to translate AI-driven infrastructure demand into durable earnings growth and expanding margins.
On a trailing twelve-month basis, Vertiv posted a gross margin of about 36% and an operating margin near 18%, reflecting meaningful improvement compared with prior years as scale benefits materialize.
Return metrics have strengthened as well, with ROIC around 25% and ROE close to 39%, highlighting efficient capital deployment as profitability accelerates.
Free cash flow generation remains strong, with LTM free cash flow exceeding $1.8 billion, supported by higher earnings and improving working capital dynamics.
The balance sheet remains manageable despite growth investments, with net debt of about $1.25 billion and net leverage below 1x EBITDA.
Vertiv also continues returning capital to shareholders through a modest dividend, though the primary value driver remains reinvestment into growth opportunities tied to data center infrastructure.
However, the stock’s rapid appreciation reflects high expectations, and execution remains critical given the competitive and capital-intensive nature of the market.
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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 stocks mentioned. Thank you for reading, and happy investing!
