Vertiv's Data Center Growth Fuels Revenue: A Sign for More Upside?

Vertiv VRT is a leading provider of thermal and power management solutions for data centers that consume immense amounts of power. The increasing complexity of AI hardware and edge computing further increases the demand for power. 

The increasing demand for data centers has benefited Vertiv’s top-line growth. In the second quarter of 2025, net sales increased 35.1% year over year to $2.64 billion. Vertiv's backlog reached $8.5 billion, up 21% year over year. 

VRT’s solutions continue to gain traction as reflected in order growth of roughly 15% year over year and 11% sequentially in the second quarter of 2025. This reflects AI and data center capacity expansion plans of its customers. 

As the demand for efficient energy use in data centers is rising, VRT’s role has become increasingly vital, with innovation and strategic partnerships serving as key catalysts for driving the future of sustainable data center solutions.

Building on this momentum, Vertiv recently announced the global launch of Vertiv OneCore, a scalable prefabricated data center solution that integrates power, thermal, and IT infrastructure to accelerate high-density deployments while reducing on-site complexity and timelines.

Collaborations with CoreWeave and Oklo strengthened its technology leadership, positioning Vertiv well for long-term growth in the evolving data center market.

VRT Suffers From Stiff Competition

Vertiv’s AI infrastructure solutions face increasing competition from Super Micro Computer SMCI and Hewlett-Packard Enterprise HPE, both of which are expanding their capabilities to serve hyperscale and enterprise AI data center deployments.

Super Micro Computer is strengthening its position with end-to-end AI rack-scale systems that integrate compute, networking, storage, and liquid cooling. Hewlett-Packard is expanding its footprint through HPE Cray and ProLiant servers, bundled with liquid-cooled solutions and high-speed interconnects. 

Both Super Micro Computer and Hewlett-Packard are strengthening their positions in the hyperscale and enterprise AI data center market, directly challenging Vertiv’s role as a key enabler of power, cooling, and infrastructure management.

Vertiv’s Share Price Performance, Valuation, and Estimates

VRT’s shares have gained 13.6% year to date. The broader Zacks Computer & Technology sector has appreciated 11.8%, while the Zacks Computers - IT Services industry has plunged 15.7% in the same period.

VRT Stock's Performance

Vertiv stock is trading at a premium, with a trailing 12-month Price/Book of 15.77X compared with the Computer and Technology sector’s 9.75X. VRT has a Value Score of F.

VRT Valuation

The Zacks Consensus Estimate for third-quarter earnings is pegged at 99 cents per share, up by 3.1% over the past 30 days, indicating 30.26% year-over-year growth.

The consensus mark for 2025 earnings is pegged at $3.82 per share, up by 7% over the past 30 days. This indicates a 34.04% increase from the reported figure of 2024.

Vertiv Holdings Co. Price and Consensus

Vertiv Holdings Co. price-consensus-chart | Vertiv Holdings Co. Quote

Vertiv currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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

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