The Top 5 Analyst Questions From Vertiv's Q3 Earnings Call

Vertiv’s third quarter CY2025 results surpassed Wall Street expectations, yet the market responded negatively. Management attributed outperformance to accelerated demand for data center infrastructure—particularly in the Americas and Asia-Pacific—driven by rapid adoption of artificial intelligence (AI) workloads. CEO Giordano Albertazzi highlighted strong order momentum and a growing backlog, noting that Vertiv’s technology and service capabilities positioned the company as a preferred partner for complex deployments. EMEA performance lagged due to ongoing power and regulatory constraints, and management acknowledged continued operational challenges related to tariffs and supply chain adjustments.

Is now the time to buy VRT? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Vertiv’s Q3 Earnings Call

Amit Daryanani (Evercore) asked about the timeline for large customer announcements, such as Oracle and OpenAI, to translate into Vertiv’s reported orders and revenue. CEO Giordano Albertazzi explained that while major customer plans are positive for the industry, the cadence for Vertiv involves gradual, phased deployments, with orders flowing as projects mature. Scott Reed Davis (Melius Research) sought clarity on the margin structure and growth trajectory of the services business. Albertazzi described services as accretive and recurring, with growth currently lagging equipment due to rapid system deployments, but set to accelerate as installed bases expand. Charles Stephen Tusa (JPMorgan) probed the sustainability of incremental margins and the impact of tariffs. CFO David J. Fallon maintained that Vertiv’s path to a long-term 25% adjusted operating margin remains intact, with tariff pressures expected to ease through mitigation strategies. Jeffrey Todd Sprague (Vertical Research) questioned the confidence behind EMEA’s expected recovery in 2026 despite regional instability. Albertazzi acknowledged prior optimism, now tempered, but pointed to strong pipeline conversations and the necessity of in-region AI capacity as supporting factors. Nigel Edward Coe (Wolfe Research) asked about the factors behind lower Q4 margin guidance and the status of supply chain reconfiguration. Fallon explained the margin reduction was split between new tariffs and accelerated fixed cost investments, with tariff mitigation anticipated to provide relief exiting the next quarter.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will closely monitor the pace of AI-driven data center order conversion into revenue, execution of tariff mitigation plans and supply chain adjustments, and the progress of EMEA restructuring and market recovery. Increases in R&D and manufacturing capacity, as well as developments in Vertiv’s service offerings, will also be key indicators of long-term positioning. The interplay between backlog conversion, margin performance, and regional performance will be critical for assessing Vertiv’s trajectory.

Vertiv currently trades at $191.07, up from $174.99 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).

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