Does Vertiv Holdings Co (VRT) have a Robust Long-Term Outlook?

Hardman Johnston Global Advisors, an investment management company, released its “Hardman Johnston Global Equity Strategy” investor letter for the fourth quarter of 2025. A copy of the letter can be downloaded here. Global equity markets delivered robust results in the quarter, backed by easing inflation trends and strong economic data. The Hardman Johnston Global Equity Strategy returned 2.91%, net of fees, compared to the MSCI AC World Net Index’s 3.29% gain. The Financials and Consumer Staples sectors contributed to the performance, while the Industrials and Consumer Discretionary sectors detracted from relative performance. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Hardman Johnston Global Equity Strategy highlighted Vertiv Holdings Co. (NYSE:VRT). Vertiv Holdings Co. (NYSE:VRT) provides critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments. The one-month return of Vertiv Holdings Co (NYSE:VRT) was 16.79%, and its shares gained 71.29% of their value over the last 52 weeks. On January 27, 2026, Vertiv Holdings Co (NYSE:VRT) stock closed at $189.21 per share, with a market capitalization of $72.342 billion.

Hardman Johnston Global Equity Strategy stated the following regarding Vertiv Holdings Co (NYSE:VRT) in its fourth quarter 2025 investor letter:

"During the quarter we initiated positions in Cameco Corp., Citigroup Inc., Elanco Animal Health, Inc., HDFC Bank Ltd., and Vertiv Holdings Co (NYSE:VRT). We initially invested in Vertiv beginning in 2020 when it IPO’d and exited in 2025. Since our exit, we have been closely following the company given the long-term secular data center infrastructure story. We re-entered the shares in the latter part of 2025 given a correction in the shares. As a reminder, the company is a leading provider of data center thermal and electrical equipment and is one of the few companies with a significant global presence in both segments. Along with its global service network, this provides meaningful competitive advantages as customers look for large scale global AI data center buildouts. Recently, the company reported a strong Q3 print despite elevated expectations, with the key highlight being orders growth of +60% y/y, notably achieved without material contribution from several recently announced mega data-center deals. Accordingly, we updated our forecasts and are modeling an above-consensus revenue outlook into 2026 and beyond, driven by continued strength in hyperscale and AI-related capex upgrades. Longer term, the outlook remains robust. At the 2024 Investor Day, management referenced ~100GW of incremental data-center capacity additions from 2024–2029, a figure that has only increased since. At ~$3.0mm per MW and assuming a 20% share, 100GW implies ~$60bn of incremental Vertiv revenue, representing meaningful upside relative to our above-consensus 2029 total sales estimate of ~$23bn. In fact, given higher cooling/electrical intensity, management recently increased their content estimates per MW to ~$3.5mm. We conservatively forecast ~23% operating margins by 2029, while management continues to target ~25% margins over the medium term. On our updated estimates, Vertiv presented an attractive opportunity to re-enter a high-quality compounder with durable secular tailwinds and further margin upside potential."

Vertiv Holdings Co (NYSE:VRT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 102 hedge fund portfolios held Vertiv Holdings Co (NYSE:VRT) at the end of the third quarter, compared to 104 in the previous quarter. While we acknowledge the potential of Vertiv Holdings Co (NYSE:VRT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Vertiv Holdings Co (NYSE:VRT) and shared the list of best US stocks to buy and hold in 2026. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.