Company Reports

Vertiv reported second-quarter sales growth of 24% year over year driven by 29% growth in both the Americas and APAC regions. Management raised full-year revenue and earnings per share guidance, but shares traded down significantly the morning of July 29.

We view Vertiv as a pure-play on data center spending as it derives over 80% of revenue from the end market. Listed on the New York Stock Exchange in 2020, Vertiv has had a brief public history after being acquired by Platinum Equity from Emerson Electric in 2016. However, Vertiv originated in the mid-1900s when computer rooms first required precision cooling solutions.

Vertiv reported first-quarter sales growth of 30% year over year driven by 53% growth in the Americas region. Management raised EPS guidance significantly, but shares traded down the morning of April 22.

We view Vertiv as a pure-play on data center spending as it derives over 80% of revenue from the end market. Listed on the New York Stock Exchange in 2020, Vertiv has had a brief public history after being acquired by Platinum Equity from Emerson Electric in 2016. However, Vertiv originated in the mid-1900s when computer rooms first required precision cooling solutions.

Vertiv reported fourth-quarter organic sales growth of 23% year over year, driven by strength in the Americas region. Notably, Vertiv's fourth-quarter order book grew 252% year over year, and its trailing-12-month orders grew 81% versus the prior year, sending shares up nearly 25% on the day.

We view Vertiv as a pure-play on data center spending as it derives over 80% of revenue from the end market. Listed on the New York Stock Exchange in 2020, Vertiv has had a brief public history after being acquired by Platinum Equity from Emerson Electric in 2016. However, Vertiv originated in the mid-1900s when computer rooms first required precision cooling solutions.

Vertiv's third-quarter organic sales grew 28%, and with 220 basis points of operating margin expansion, its EPS compounded 63% year over year. Results were driven by 43% sales growth within the Americas region.

We view Vertiv as a pure-play on data center spending as it derives over 80% of revenue from the end market. Listed on the New York Stock Exchange in 2020, Vertiv has had a brief public history after being acquired by Platinum Equity from Emerson Electric in 2016. However, Vertiv originated in the mid-1900s when computer rooms first required precision cooling solutions.

Vertiv reported 34% organic revenue growth and EPS up nearly 80% year over year. Management raised guidance for most metrics, but shares traded flat the morning of July 30.

We view Vertiv as a pure-play on data center spending as it derives over 80% of revenue from the end market. Listed on the New York Stock Exchange in 2020, Vertiv has had a brief public history after being acquired by Platinum Equity from Emerson Electric in 2016. However, Vertiv originated in the mid-1900s when computer rooms first required precision cooling solutions.

On July 9, Vertiv shares fell around 10% after Amazon's AWS revealed an advanced server with an in-house cooling solution. Shares partially recovered by the end of the trading day.

Vertiv's first-quarter 2025 results reported year-over-year organic revenue growth of 25%, and earnings per share up nearly 50%. Moreover, management raised guidance for full-year revenue growth by an additional 3%, sending shares up over 12% by midmorning.

We assign Vertiv a fair value estimate of $103 per share upon initiating coverage. Vertiv’s value is underpinned by a narrow economic moat through which we believe it can produce returns above its cost of capital over the next decade. We also assign Vertiv a Standard Capital Allocation Rating, reflecting its satisfactory balance sheet, sound investment decisions, and mixed shareholder distributions.

We view Vertiv as a pure-play on data center spending as it derives over 80% of revenue from the end market. Listed on the New York Stock Exchange in 2020, Vertiv has had a brief public history after being acquired by Platinum Equity from Emerson Electric in 2016. However, Vertiv originated in the mid-1900s when computer rooms first required precision cooling solutions.