VRT Stock Forecast & Price Target

Vertiv Holdings is experiencing robust organic sales growth, with expectations set at 26%-28%, following a 34% year-over-year increase in product sales and a 10% rise in service sales during the latest quarter. The company has also improved its 2025 adjusted cash EPS guidance by $0.30, reflecting an 8% midpoint increase, alongside a notable expansion in segment operating margins to 22.3%, surpassing initial estimates and guidance. With strong performance particularly in the Americas, which saw a significant 43% growth, Vertiv is set for continued financial strength and operational efficiency through 2026 and beyond.

Vertiv Holdings has raised concerns regarding its forecast for future performance, particularly as the adjusted operating margin in 3Q25 came in 220 basis points above consensus, yet still leads to a lower outlook for 4Q25 due to a cut in the full year adjusted operating margin outlook by 50 basis points. The firm faces several potential challenges that could negatively impact its share performance, including lower-than-expected data center capital expenditure, slow adoption of liquid cooling technology, and diminished customer demand, all of which highlight a precarious market position. Additionally, the substantial 710 basis points margin contraction in EMEA raises concerns about operating leverage as the company ramps up capacity investments in anticipation of demand, stressing the importance of innovation to maintain competitive standing against rivals such as Eaton and Schneider.