Can Vertiv's International Expansion Drive More Upside in the Stock?

Vertiv VRT is benefiting from strong international demand for data center infrastructure, driven by the global acceleration of digital transformation and AI adoption. 

The company reported a robust third-quarter 2025, with organic sales growth of 28% year over year, driven by a 43% increase in the Americas and 21% growth in the APAC region.  While EMEA sales declined 4%, Vertiv remains optimistic about a rebound in the second half of 2026, citing strong demand for AI infrastructure and strict data sovereignty requirements in Europe. The company’s backlog has grown 30% year over year to $9.5 billion, providing strong visibility into 2026, with significant contributions expected from international markets. 

The company’s expanding portfolio has been noteworthy. Vertiv recently announced new configurations of its Vertiv MegaMod HDX prefabricated power and hybrid cooling solutions. These are designed for high-density AI and HPC deployments, supporting rack densities above 100 kW and power capacities ranging from 1.25 MW to 10 MW. 

The modular systems are available worldwide and integrate direct-to-chip liquid cooling, redundant power architecture and factory-tested components. This setup helps speed up deployment, maximize space, and create a scalable, reliable AI infrastructure.

Vertiv anticipates continued significant organic sales growth, driven by its strong backlog and healthy pipeline. 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 Faces Stiff Competition

Vertiv is facing increasing competition from Super Micro Computer SMCI and Hewlett-Packard Enterprise HPE. Both Super Micro Computer and Hewlett-Packard Enterprise are expanding their capabilities in the AI infrastructure market.

Super Micro Computer is benefiting internationally through significant global expansion efforts. The company has established new production facilities in Taiwan, the Netherlands, Malaysia and is planning to open a facility in the Middle East.  These expansions aim to increase production capacity, enhance cost competitiveness and meet regional AI requirements. Super Micro Computer is scaling production to 6,000 racks per month, including 3,000 DLC racks, within fiscal 2026.

Hewlett-Packard Enterprise’s expanding AI infrastructure portfolio has been noteworthy. In December 2025, Hewlett Packard Enterprise and NVIDIA expanded their partnership to launch the AI Factory Lab in Grenoble, France, addressing EU customers’ needs for more control and autonomy over their AI infrastructure and data.

Vertiv’s Share Price Performance, Valuation, and Estimates

VRT’s shares have gained 39.9% in the past six-month period. The broader Zacks Computer & Technology sector has appreciated 16.8%, while the Zacks Computers - IT Services industry has declined 10.9% in the same period.

VRT Stock's Performance

Vertiv stock is trading at a premium, with a trailing 12-month Price/Book of 19.09X compared with the Computer and Technology sector’s 10.74X. VRT has a Value Score of D.

VRT's Valuation

The Zacks Consensus Estimate for 2025 earnings is pegged at $4.12 per share, which has increased by a penny over the past 30 days. This indicates a 44.56% 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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