Vertiv Soars 55% YTD: Is This the Right Time to Buy the Stock?

Vertiv VRT shares have surged 54.6% in the year-to-date period, outperforming the broader Zacks Computer and Technology sector’s decline of 11.6%. The Zacks Computers - IT Services industry declined 21.2% over the same period.

The company has also outperformed its closest peer, Super Micro Computer SMCI, which is expanding its footprint in the AI Infrastructure space. Super Micro Computer shares have plunged 22.2% in the year-to-date period.

The outperformance of VRT stock can be attributed to its extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbars, and modular solutions. Over the trailing 12 months, organic orders grew approximately 81%, with a book-to-bill of 2.9 times in the fourth quarter of 2025, indicating strong prospects. This is helping VRT to fend off its competitors like Super Micro Computer.

In the fourth quarter of 2025, organic orders rose approximately 252% year over year, with the backlog increasing to $15.0 billion, up 109% compared with the fourth quarter of 2024 and up 57% sequentially from the third quarter of 2025. This growth is primarily driven by the rapid adoption of AI and the increasing need for data centers to support the digital transformation.

VRT Stock's Performance

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Vertiv Benefits From Expanding Portfolio

Vertiv’s expanding portfolio has been noteworthy. The global acceleration of AI adoption is driving significant demand for data center infrastructure. Vertiv is capitalizing on this trend, particularly in the Americas, which saw a 46% organic sales growth in the fourth quarter of 2025.

In March 2026, the company increased its manufacturing presence across the Americas with upgraded facilities in South Carolina, Pennsylvania, and Mexico. This expansion significantly boosts capacity for AI-ready data center infrastructure. These investments improve its ability to provide faster, integrated power, cooling, and modular solutions that accelerate deployment and meet the rising demands of AI-driven digital infrastructure.

Further expanding its portfolio in February 2026, Vertiv announced a significant change in data center deployment by introducing a high-fidelity Digital Twin platform. This platform aims to speed up AI infrastructure builds using Vertiv OneCore modular solutions. The system combines power, cooling and infrastructure into factory-built blocks. This approach lowers deployment time by up to 50% and reduces total ownership costs by as much as 25%.

As part of the launch, Hut 8 HUT worked with Vertiv to integrate OneCore into certain AI data center projects. The collaboration between Vertiv and Hut 8 merges power-first infrastructure with modular deployment. The goal of the partnership with Hut 8 is to streamline AI data center construction and enable scalable, high-density computing environments for next-generation workloads.

Vertiv Gains From Expanding Client Base

Vertiv’s rich partner base, which includes NVIDIA NVDA, Generate Capital, Caterpillar, Ballard Power Systems, Compass Datacenters, Oklo, Intel, ZincFive, and Tecogen, has been noteworthy.

Vertiv’s partnership with NVIDIA has been a key catalyst. In March 2026, Vertiv announced its partnership with NVIDIA to provide DSX SimReady digital power and cooling systems for AI factory designs. Vertiv’s collaboration with NVIDIA aims to enable faster, safer deployment using scalable, simulation-validated building blocks.

The initiative brings together physical infrastructure through the Vertiv OneCore Rubin DSX architecture. It integrates power, cooling and controls into standardized 12.5MW modules. This setup boosts performance, speeds up deployment and supports growth of next-generation AI factories.

VRT Initiates Positive 1Q26 Guidance

Vertiv is benefiting from its strong portfolio and rich partner base, which will continue to benefit the company’s top-line growth.

For first-quarter 2026, revenues are expected to be between $2.5 billion and $2.7 billion. Organic net sales are expected to increase in the 18% to 26% range. The Zacks Consensus Estimate for Vertiv’s first-quarter 2026 revenues is pegged at $2.65 billion, suggesting growth of 30.08% year over year.

VRT expects first-quarter 2026 non-GAAP earnings per share between 95 cents and $1.01. The Zacks Consensus Estimate for first-quarter 2026 earnings is currently pegged at $1 per share, unchanged over the past 30 days. The figure indicates a year-over-year increase of 56.25%.

Vertiv Holdings Co. Price and Consensus

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

Vertiv Stock Is Trading at a Premium

Vertiv is currently overvalued, as suggested by a Value Score of F.

In terms of the trailing 12-month Price/Book, Vertiv is currently trading at 24.32X compared with the broader Computer and Technology sector’s 8.67X.

VRT Stock's Valuation

Image Source: Zacks Investment Research

Conclusion

Vertiv is benefiting from its strong portfolio and rich partner base, which are driving order growth. These factors justify the company’s premium valuation.

Vertiv stock currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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