Vertiv (NYSE:VRT) Shares Gap Up Following Strong Earnings

Vertiv Holdings Co. (NYSE:VRT)’s stock price gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $199.62, but opened at $233.25. Vertiv shares last traded at $236.6260, with a volume of 7,935,893 shares.

The company reported $1.36 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.29 by $0.07. Vertiv had a return on equity of 50.82% and a net margin of 10.67%.The firm had revenue of $2.88 billion for the quarter, compared to the consensus estimate of $2.89 billion. During the same quarter last year, the business posted $0.99 EPS. The firm’s quarterly revenue was up 22.7% compared to the same quarter last year. Vertiv has set its Q1 2026 guidance at 0.950-1.010 EPS and its FY 2026 guidance at 5.970-6.070 EPS.

Vertiv Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, December 18th. Investors of record on Tuesday, November 25th were given a $0.0625 dividend. This is a positive change from Vertiv’s previous quarterly dividend of $0.04. The ex-dividend date was Tuesday, November 25th. This represents a $0.25 annualized dividend and a yield of 0.1%. Vertiv’s payout ratio is currently 9.43%.

Key Stories Impacting Vertiv

Here are the key news stories impacting Vertiv this week:

• Positive Sentiment: Q4 earnings beat: Vertiv reported $1.36 EPS versus Street estimates of $1.29, up from $0.99 a year earlier — the beat is the immediate catalyst for investor buying. Vertiv Stock Soars. Earnings Shake Off Concerns the AI Trade Is Losing Steam.
• Positive Sentiment: Upgraded FY 2026 guidance: Management lifted FY EPS guidance to 5.970–6.070 (well above consensus ~5.28) and guided higher revenue, signaling stronger demand and margin leverage for the year. Press Release / Slide Deck
• Positive Sentiment: Operational strength: Company reported 23% YoY net sales growth, 25% organic orders growth, expanded adjusted operating margin and very strong operating cash flow and adjusted free cash flow — metrics that support valuation and buyback/return potential. Vertiv Reports Strong Fourth Quarter
• Positive Sentiment: Market/analyst momentum around AI exposure: Commentators and analysts highlighted Vertiv’s role in the AI/data‑center ecosystem (including Jim Cramer coverage), boosting sentiment as investors rotate into names tied to AI infrastructure. Vertiv Holdings: Powering the AI Boom
• Neutral Sentiment: Q1 guidance mixed: Management gave Q1 EPS guidance of $0.95–1.01 (around consensus), so near‑term growth is less certain — the range overlaps Street expectations. Conference Call Slides
• Neutral Sentiment: Revenue was roughly flat to estimates for the quarter ($2.88B vs ~$2.89B), so the EPS beat was driven by margins and mix rather than a big top‑line surprise. MarketBeat Earnings Summary
• Neutral Sentiment: Media coverage noted a pre‑market surge ahead of the report, reflecting heavy positioning and short‑term flows rather than new fundamental changes. Pre-market Coverage
• Negative Sentiment: Valuation and volatility risk: VRT is trading at a high multiple (PE ~92) and has a beta >2, so upside from beats can be amplified but downside risk is material if growth slows.

Analysts Set New Price Targets

A number of research analysts have commented on the stock. Wolfe Research lowered shares of Vertiv from an “outperform” rating to a “peer perform” rating in a research note on Tuesday, December 9th. UBS Group boosted their price target on Vertiv from $173.00 to $201.00 and gave the company a “buy” rating in a research report on Thursday, October 23rd. JPMorgan Chase & Co. decreased their price objective on Vertiv from $230.00 to $225.00 and set an “overweight” rating for the company in a research report on Friday, January 16th. Mizuho boosted their target price on Vertiv from $165.00 to $198.00 and gave the company an “outperform” rating in a report on Friday, October 17th. Finally, TD Cowen restated a “buy” rating and set a $211.00 price target on shares of Vertiv in a research note on Monday, December 1st. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Vertiv presently has an average rating of “Moderate Buy” and a consensus price target of $187.89.

Insider Activity

In related news, EVP Stephen Liang sold 5,501 shares of the firm’s stock in a transaction dated Monday, November 24th. The shares were sold at an average price of $170.48, for a total value of $937,810.48. Following the completion of the sale, the executive vice president owned 4,050 shares in the company, valued at $690,444. This trade represents a 57.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 5.01% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in VRT. Norges Bank purchased a new position in Vertiv in the 4th quarter valued at approximately $808,701,000. Winslow Capital Management LLC purchased a new position in Vertiv during the 2nd quarter valued at about $459,284,000. Nordea Investment Management AB raised its position in Vertiv by 100.1% during the second quarter. Nordea Investment Management AB now owns 3,246,769 shares of the company’s stock worth $415,132,000 after acquiring an additional 1,624,456 shares during the last quarter. Schroder Investment Management Group raised its position in Vertiv by 148.0% during the third quarter. Schroder Investment Management Group now owns 1,828,750 shares of the company’s stock worth $275,885,000 after acquiring an additional 1,091,210 shares during the last quarter. Finally, SG Americas Securities LLC lifted its holdings in shares of Vertiv by 102.7% in the second quarter. SG Americas Securities LLC now owns 26,837 shares of the company’s stock valued at $3,446,000 after purchasing an additional 1,026,837 shares in the last quarter. 89.92% of the stock is owned by hedge funds and other institutional investors.

Vertiv Stock Up 18.4%

The firm’s 50-day moving average price is $175.47 and its 200 day moving average price is $162.37. The firm has a market capitalization of $90.36 billion, a price-to-earnings ratio of 88.47, a price-to-earnings-growth ratio of 1.24 and a beta of 2.08. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.83 and a quick ratio of 1.43.

Vertiv Company Profile

Vertiv is a global provider of critical digital infrastructure and continuity solutions for data centers, communication networks and commercial and industrial environments. Headquartered in Columbus, Ohio, the company designs, manufactures and services equipment and software that support power availability, thermal management and IT infrastructure management for a broad set of end markets, including hyperscale and enterprise data centers, colocation providers, telecom operators and industrial customers.

The company’s product portfolio includes uninterruptible power supplies (UPS), power distribution units (PDUs), battery and DC power systems, precision cooling and thermal management equipment, racks and enclosures, and integrated modular infrastructure.