Veritiv Set to Continue Huge Momentum After Q2 Beats and Solid Guidance

Vertiv Holdings Co. VRT came up with second-quarter 2025 adjusted earnings of $0.95 per share, beating the Zacks Consensus Estimate of $0.83. This compares to earnings of $0.67 per share a year ago. VRT posted quarterly revenues of $2.64 billion, surpassing the Zacks Consensus Estimate by 11.86%. This compares to year-ago revenues of $1.95 billion.

Vertiv is a leading global provider of critical digital infrastructure and services for data centers, communication networks, and commercial and industrial environments. Its portfolio mainly consists of power, cooling, and IT infrastructure solutions and services, particularly the artificial intelligence (AI)-enabled infrastructure.

Innovative Portfolio and Solid Execution 

Vertiv is benefiting from an extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbar and modular solutions. CEO Giordano Albertazzi said, "Our 35% sales growth and robust orders momentum reflect both strong market demand and expanded capabilities to serve customers' increasingly complex infrastructure needs."

Buoyed by unprecedented data center growth, VRT is strategically expanding capacity to accelerate its AI-enabled pipeline. Vertiv’s partnership with NVIDIA Corp. NVDA is a key catalyst. VRT aims to stay one GPU generation ahead of NVIDIA, enabling efficient, scalable power solutions for next-gen AI data centers.  

As hyperscalers and enterprises increasingly scale AI deployments to support high-performance data centers, Vertiv’s solutions are gaining traction. Apart from NVIDIA, Vertiv has a rich partner base, which includes Ballard Power Systems Inc. BLDP, Compass Datacenters, Intel Corp. INTC, ZincFive, and Tecogen.

Supported by the above-mentioned positives, the stock price of Veritiv has jumped 29.4% year to date. In fact, the stock price soared 58.8% in the past three months as AI-infrastructure providers regained centerstage, with massive expenditure by data center hyperscalers.  

Impressive Guidance

For the third quarter, Veritiv forecast adjusted earnings of $0.97 a share, higher than the current Zacks Consensus Estimate of $0.96. Total revenues are expected to reach $2.55 billion versus the current Zacks Consensus Estimate of $2.44 billion. The Zacks Consensus Estimate for third-quarter earnings has improved 1.1% over the last 30 days.

For 2025, VRT projects adjusted earnings per share in the range of $3.75 to $3.85. Its mid-point of $3.80 is well above the current Zacks Consensus Estimate of $3.57. Total revenues are expected in the range of $9.93 billion to $10.08 billion. Its mid-point of $10 billion exceeds the current Zacks Consensus Estimate of $9.52 billion. The Zacks Consensus Estimate for the current earnings has improved 0.3% over the last 30 days.

Long-Term Prospects

The AI infrastructure space remains rock solid supported by an extremely bullish demand scenario. Four of the “magnificent 7” stocks have decided to invest a massive $325 billion in 2025 as capital expenditure for AI-infrastructure development. This marks a significant 46% year-over-year increase in capital spending on the AI ecosystem.

Moreover, three out of these four hyperscalers have already raised their 2025 capital spending target in their last reported earnings conference call and committed to higher expenditure for 2026. 

VRT’s Executive Chairman Dave Cote said, "What we're seeing in the data center industry today goes well beyond the next few years. This is a technological transformation that we believe will drive sustained long-term growth.”  

For 2026, the current Zacks Consensus Estimate for revenues and EPS are currently pegged at $10.88 billion and $4.43, respectively. More importantly, the current Zacks Consensus Estimate for VRT’s long-term (3-5 years) EPS growth rate of 28.3% is significantly higher than the S&P 500’s long-term EPS growth rate of 12.6%. 

Should You Buy VRT Stock?

Veritiv is currently holding a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

The recent astonishing rally of the stock is expected to continue in the near future following VRT’s strong second-quarter results and an impressive guidance for the rest of 2025. This AI infrastructure bigwig for data centers has tremendous upside potential as huge spending by hyperscalers will dramatically change the world over the next five years in fields such as automation, robotics, healthcare, energy, materials, financials and cybersecurity. 

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This article originally published on Zacks Investment Research (zacks.com).

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