Vertiv Q3 Earnings Beat Estimates, Net Sales Up Y/Y, Shares Rise

By Zacks Equity Research | October 23, 2025, 2:04 PM

Vertiv Holdings VRT reported third-quarter 2025 non-GAAP earnings of $1.24 per share, beating the Zacks Consensus Estimate by 24%. The figure jumped 63.2% year over year.

Net sales increased 29% year over year to $2.68 billion, surpassing the Zacks Consensus Estimate by 3.60%. Net sales on an organic basis increased 28.4% year over year.

Vertiv stock gained 1.63% in pre-market trading. The uptick can be attributed to strong organic sales growth, driven by higher adjusted operating profit and robust performance across its regional segments.

VRT Prospects Ride on Strong Backlog

Organic orders (excluding foreign exchange) rose 60% year over year, and the book-to-bill ratio was roughly 1.4x in the third quarter. The backlog at the end of the third quarter was $9.5 billion. Backlog was 30% higher than 2024-end and up 12% from the end of the second quarter of 2025. In the third quarter, trailing twelve-month (TTM) organic orders grew 21% compared with the prior-year period.

Vertiv Holdings Co. Price, Consensus and EPS Surprise

Vertiv Holdings Co. Price, Consensus and EPS Surprise

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

Product revenues (which accounted for 82.8% of total revenues) increased 33.9% year over year to $2.21 billion. Service revenues (17.2% of total revenues) increased 9.9% year over year to $461.4 million.

Americas’ revenues increased 42.9% year over year (43% organic) to $1.71 billion and accounted for 64% of total revenues. Product revenues increased 49.1% year over year (49.2% organic) to $1.42 billion. Service & spares revenues increased 18.3% year over year (18.1% organic) to $285.8 million in the reported quarter.

Asia and Pacific (APAC) revenues increased 20.2% year over year (21.3% organic) to $519.8 million and accounted for 19.4% of total revenues. Product revenues increased 25.1% year over year (26.3% organic) to $392.7 million. Service & spares revenues increased 7.3% year over year (8.1% organic) to $127.1 million in the reported quarter.

Europe, Middle East, and Africa (EMEA) revenues increased 0.2% year over year (down 4% organic) to $443.6 million and accounted for 16.6% of total revenues. Product revenues increased 1% year over year (down 3% organic) to $348.3 million. Service & spares revenues decreased 2.6% year over year (down 7.5% organic) to $95.3 million in the third quarter of 2025.

VRT’s Operating Details

Selling, general, and administrative (SG&A) expenses increased 23.8% year over year to $414.3 million. As a percentage of sales, SG&A expenses decreased 70 basis points (bps) year over year to 15.5%.

Adjusted operating profit jumped 42.9% year over year to $595.6 million. The third-quarter non-GAAP operating margin was 22.3%, up 220 bps year over year.

Americas' adjusted operating profit surged 65.4% year over year to $501.8 million. EMEA’s adjusted operating profit decreased 27% year over year to $83.5 million. APAC’s adjusted operating profit surged 55.3% year over year to $68.5 million.

VRT’s Balance Sheet Remains Strong

As of Sept. 30, 2025, cash and cash equivalents totaled $1.39 billion compared with $1.64 billion as of June 30, 2025.

Long-term debt at the end of the third quarter was $2.897 billion, down from $2.900 billion reported in the previous quarter.

Cash flow from operating activities was $508.7 million for the reported quarter, up from $322.9 million in the prior quarter. Free cash flow was $462 million for the third quarter.

VRT Raises 2025 Guidance

For 2025, revenues are now expected to be between $10.16 billion and $10.24 billion. Organic net sales growth is expected to be between 26% and 28%.

Vertiv expects adjusted operating profit between $2.04 billion and $2.08 billion. Operating margin is expected to be in the 20%-20.5% range.

VRT expects 2025 non-GAAP earnings between $4.07 per share and $4.13 per share. 

Free cash flow for 2025 is expected to be between $1.47 billion and $1.53 billion.

For fourth-quarter 2025, revenues are expected to be between $2.81 billion and $2.89 billion. Organic net sales are expected to increase in the 18% to 22% range.

Vertiv expects adjusted operating profit between $620 million and $660 million. Operating margin is expected to be in the 22.1%-22.7% range.

VRT expects fourth-quarter 2025 non-GAAP earnings per share between $1.23 and $1.00.

Free cash flow for the fourth quarter of 2025 is expected to be between $470 million and $530 million.

Zacks Rank & Other Key Picks

Currently, Vertiv has a Zacks Rank #2 (Buy). 

Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Alkami Technology ALKT, AMETEK AME, and Celestica CLS. While Alkami Technology sports a Zacks Rank #1 (Strong Buy), AMETEK and Celestica carry a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Alkami Technology is set to report third-quarter 2025 results on Oct. 30. Alkami Technology shares have lost 36.6% year to date.

AMETEK is slated to report third-quarter 2025 results on Oct. 30. AMETEK shares have gained 2.6% year to date.

Celestica is set to report third-quarter 2025 results on Oct. 27. Celestica shares have surged 193.5% year to date.

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

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