Live Analysis: Vertiv (NYSE: VRT) Up 4% After Strong Earnings

Vertiv jumped past $150 per share immediately after the opening bell, but gains have eased. The stock is currently trading for $147 per share, or up about 3.5%.

Other AI infrastructure stocks like Marvell (Nasdaq: MRVL) and Credo (Nasdaq: CRDO) are also seeing strong gains today.

GDP figures just came out which show the U.S. economy grew at 3% in Q2, higher than expectations. Vertiv shares are now trading up 5.3% as of 8:45 a.m. ET.

Here’s the slide on tariffs from Vertiv’s earnings report. Really the only ‘negative’ from this earnings release was operating margins taking a hit from the impacts of tariffs.

VRT | Vertiv Holdings Q2’25 Earnings Highlights:

• Adj. EPS: $0.95 ✅; UP +42% YoY
• Revenue: $2.6B [✅]; UP +35% YoY
• Adj. Operating Margin: 18.5% [⚠️]; DOWN -110 bps YoY
• Net Income: $324.2M [✅]; UP +82% YoY
• Adjusted Operating Profit: $489.3M [✅]; UP +28% YoY
• Adjusted Free Cash Flow: $277M; DOWN -17% YoY
• Backlog: $8.5B; Book-to-bill ratio of ~1.2x

2025 Outlook:

• Revenue: $9.925B – $10.075B [✅]
  • Projected organic sales growth of 24%, up from 18%.
  • Continued investments in ER&D and manufacturing capacity to meet demand.

Q2 Segment Performance:

• AMER Revenue: $1.6B [✅]; UP +42.9% YoY
• APAC Revenue: $560.2M [✅]; UP +36.9% YoY
• EMEA Revenue: $475.6M [✅]; UP +12.5% YoY

Other Key Q2 Metrics:

• Adj. Operating Income: $489.3M; UP +28% YoY
• Adj. Operating Expenses: $395.6M; UP +8.7% YoY
• Effective Tax Rate: 23.0% (vs. 32.7% YoY)
• Liquidity: $2.5B
• Net Leverage: 0.6x

CEO Commentary:

• Giordano Albertazzi: “Vertiv’s second quarter performance demonstrates the strength of our market position and our ability to execute at scale. Our 35% sales growth and robust orders momentum reflect both strong market demand and our expanded capabilities to serve our customers’ increasingly complex infrastructure needs. We are strategically investing in capacity expansion and accelerating our innovation pipeline to capitalize on unprecedented data center growth, particularly in AI-enabled infrastructure. The announced agreement to acquire Great Lakes Data Racks & Cabinets further strengthens our position in the fast-growing data center market. As we progress on our strong growth trajectory, we are vigorously addressing some temporary margin challenges which we anticipate will be materially addressed by the end of 2025. Given our strong performance, backlog and positive outlook, we are raising our full-year adjusted diluted EPS, net sales, adjusted operating profit and adjusted free cash flow forecast, positioning Vertiv for even stronger performance in the quarters ahead.”

CFO Commentary:

• Dave Cote: “What we’re seeing in the data center industry today goes well beyond the next few years. This is a technological transformation that we believe will drive sustained long-term growth. We plan to invest resolutely and rationally, both organically and through acquisitions, to strengthen our market leadership and capitalize on this latest significant development as the digital age progresses.”

Strategic Updates:

• Vertiv announced an agreement to acquire Great Lakes Data Racks & Cabinets, enhancing its capabilities in high-density white space solutions.

It’s worth noting that Vertiv’s conference call won’t start until after the market opens, so any coments from management won’t move shares before market open.

You can sign up for the conference call here if you want to listen in.

CEO Giordano Albertazzi’s very bullish statement on Vertiv’s future prospects:

“We are strategically investing in capacity expansion and accelerating our innovation pipeline to capitalize on unprecedented data center growth, particularly in AI-enabled infrastructure.

Given our strong performance, backlog and positive outlook, we are raising our full-year adjusted diluted EPS, net sales, adjusted operating profit and adjusted free cash flow forecast, positioning Vertiv for even stronger performance in the quarters ahead.”

And a reset on FY 25 estimates going into the back half of the year. Expect analysts to follow through with ~5–7% upward revisions to full-year EPS targets.

Vertiv shares are up over 9% after an early morning earnings beat.

Vertiv also lifted its full-year 2025 guidance meaningfully across nearly every key metric:

AI Infrastructure Remains the Growth Engine

Vertiv’s business is tethered to hyperscaler and enterprise AI infrastructure demand. This quarter validated that theme.

• Revenue up 35% YoY, driven by AI buildouts and stronger prefabricated system demand.

• APAC segment +37%, with management pointing to accelerating AI data center deployments in Korea and Japan.

• The new acquisition (Great Lakes Data Racks) is a strategic bet on “white space” physical infrastructure.

We previewed what Vertiv delivered when they reported Q1 earnings in April, now let’s look at what Wall Street expects today:

Q2 Wall Street Consensus 

• Revenue: $2.356 billion
• Cash from Operations: $220.3 million
• Adjusted EPS: $.83

2025 Wall Street Consensus

• Revenue: $9.453 billion
• Adjusted EPS: $3.58

Once earnings are released, analysts will race to see whether 1.) Vertiv beat expectations for last quarter and 2.) whether the company has adjusted its guidance for 2025. Given Vertiv’s recent rally, its like shares will be negative if they merely match expectations.

Stocks that have rallied as much as Vertiv has generally need a ‘beat and raise’ where they exceed the prior quarter and raise full-year expectations. As a reminder, in Q1 Vertiv guided to full year revenue of 9.325B – $9.575B.

We expect Vertiv earnings to be released shortly before 6 a.m. ET.