Vertiv Holdings
Pure-play AI data-center power and cooling. Q2 2026 (reported 2026-07-29): net sales $3.274B (+24% YoY, 18% organic), diluted EPS +53% to $1.27, adjusted EPS +60% to $1.52, adjusted operating margin 22.6% (+410bps), operating cash flow up 241% to $1.1B. FY2026 guidance was raised again to $13.8-14.2B in net sales and 30-32% organic growth. Headline revenue nonetheless missed consensus of about $3.38B on what management called supply-chain congestion and project timing rather than demand, and the stock sold off roughly 18% over two days. Closed the ThermoKey and Strategic Thermal Labs acquisitions to extend direct-to-chip liquid cooling.
Scenarios
AI rack power densities rising from 30kW to 150kW+ require liquid cooling and advanced power distribution — Vertiv is the established incumbent with NVIDIA partnership. Backlog $15B (+109% YoY) gives multi-year revenue visibility. Pure-play on hyperscaler AI capex acceleration.
Cyclical capex exposure — if hyperscaler AI training capex peaks 2026-2027, Vertiv orders decelerate sharply. Competition from Schneider Electric, Eaton, Johnson Controls intensifying. Premium valuation prices in execution.
Key Factors to Watch
- ●Q1 2026 BEAT — revenue +30% YoY, FY26 guide raised to +29-31%, op margin +430bps
- ●Q4 2025 orders +252% YoY, $15B backlog (+109%), 2.9× book-to-bill
- ●NVIDIA liquid cooling reference partner — embedded in DGX/Blackwell reference designs
- ●Sells to every hyperscaler — Microsoft, Google, Amazon, Meta, Oracle
Manufacturing Peers
Last researched: 2026-08-29
This is research and analysis, not financial advice. Scores reflect AI impact potential, not investment recommendations.