VRT Rides on Accelerating Data Center Growth: A Sign for More Upside?

Vertiv VRT is benefiting from the accelerating growth of data centers globally, driven by the rapid adoption of AI and the increasing demand for digital infrastructure. The global acceleration of AI adoption is driving significant demand for data center infrastructure. Vertiv is capitalizing on this trend, particularly in the Americas, where it saw a 43% organic sales growth in the third quarter of 2025, and in APAC, which grew 21% year over year.

In the trailing 12 months, organic orders grew approximately 21%, with a book-to-bill of 1.4 times for the third quarter of 2025, indicating a strong prospect. The backlog grew 12% sequentially and 30% year over year to $9.5 billion. This growth is primarily driven by the rapid adoption of AI and the increasing need for data centers to support the digital transformation.

The company’s extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbar, and modular solutions, remains noteworthy. Acquisitions have also played an important role in expanding Vertiv’s portfolio.

Building on this momentum, Vertiv recently finished its $1.0 billion purchase of PurgeRite. This move strengthens its leadership in next-generation liquid cooling and thermal management services. 

The agreement improves system performance and reliability for High-Performance Computing and AI data centers by combining Vertiv’s thermal knowledge with PurgeRite’s flushing, purging, and filtration abilities.

Vertiv Faces Stiff Competition

Vertiv is facing increasing competition from Super Micro Computer SMCI and Hewlett Packard Enterprise HPE, both of which are expanding their capabilities in the data center market.

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 61.3% in the past six-month period. The broader Zacks Computer & Technology sector has appreciated 26.6%, while the Zacks Computers - IT Services industry has declined 8.1% in the same period.

VRT Stock Performance

Vertiv stock is trading at a premium, with a trailing 12-month Price/Book of 19.44X compared with the Computer and Technology sector’s 10.81X. VRT has a Value Score of F.

Price/Book

The consensus mark for 2025 earnings is pegged at $4.11 per share, unchanged over the past 30 days. This indicates a 44.21% 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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