# Vertiv (VRT) Sector: Data center power and cooling equipment | Field | Value | |---|---| | Price | $200.47 | | Market cap | $77B | | Intrinsic value source | Analysts | | Data as of | 2026-11-10 | | Next earnings | 2027-01-28 (estimate) | Analysts: Bullish Picks: Top pick Discount category: Below intrinsic value ## In short Investors are careful about how long AI data center spending can last, and strong orders and margins for Vertiv in 2027 can close the gap. ## Themes and gap - Themes: AI supplier (ai-supplier), Power and energy (power-energy), Tariffs and trade (trade-tariffs) - Gap type: Can close (closable) - Why: The Q4 2026 report with the 2027 guidance, expected in late January 2027, shows whether AI data center orders and margins stay strong. ## About Vertiv makes power and cooling equipment for data centers, communication networks and commercial and industrial buildings. Its products include uninterruptible power supplies, switchgear, busbar, power distribution units, air and liquid cooling systems, racks and prefabricated modular units. It also sells services and spare parts for the equipment that it installs. In Q3 2026, products gave $3,594 million and services and spares $719 million of net sales of $4,313 million. The Americas gave $2,989 million, Asia Pacific $779 million and Europe, Middle East and Africa $545 million. Most demand comes from data centers of cloud companies, colocation operators and other companies that build capacity for artificial intelligence (AI). On October 26, 2026, Vertiv bought UtilityInnovation Group, which designs microgrids and power systems on the customer side of the electricity meter. Vertiv had about 34,000 employees at December 31, 2025. The head office is in Westerville, Ohio. Giordano Albertazzi is Chief Executive Officer, and Dave Cote is Executive Chairman. ## Thesis Vertiv trades below its intrinsic value because investors are careful about how long the fast growth in AI data center spending can last, and about the price of its acquisitions. In Q3 2026, net sales rose 61% to $4,313 million, organic orders rose more than 100%, and adjusted diluted EPS rose 78% to $2.21. Vertiv raised its 2026 guidance to net sales of $14,450 million to $14,850 million and adjusted diluted EPS of $7.10 to $7.20. For the gap to close, three things must be true. Data center customers must keep their large orders in 2027, so that the orders become sales. The adjusted operating margin, 25.2% in Q3 2026, must stay high while Vertiv adds factory capacity. UtilityInnovation Group, bought for about $1.45 billion in cash and up to $1.15 billion more in earnout payments, must add to earnings as planned. The Q4 2026 report, expected in late January 2027, with the first guidance for 2027, is the next test. If orders and margins stay strong, the gap can close within one to two years. ## Checkpoints - Oct 28, 2026: Q3 2026 results: orders and margins. Status: Passed. Watch: Organic orders growth and an adjusted operating margin of 24% or more pass; a fall in orders fails. Outcome: Organic orders rose more than 100%, and the adjusted operating margin was 25.2%. - Jan 28, 2027 (estimate): Q4 2026 results and 2027 guidance. Status: Pending. Watch: 2026 adjusted diluted EPS of $7.10 or more and 2027 guidance for more sales growth pass; guidance for lower sales fails. - Q4 2027 (estimate): UtilityInnovation Group earnout. Status: Pending. Watch: UtilityInnovation Group reaches its 12-month EBITDA target passes; a large shortfall or an impairment fails. ## Balance sheet - Cash: $3.7B - Debt: $3.0B - Net cash: $757M - Undrawn credit line: $2.5B, to March 2031 - Debt due within 12 months: $3.0M - Last debt due: 2066 Vertiv funds itself mainly with cash flow and senior notes. On March 3, 2026, it issued $2,100 million of senior unsecured notes: $600 million at 4.850% due 2036, $500 million at 5.650% due 2046, $500 million at 5.800% due 2056 and $500 million at 5.950% due 2066. It used the money to repay its term loan in full. At September 30, 2026, debt was $2,955 million at face value, including $850 million of 4.125% senior secured notes due 2028, and $2,929 million net of issue costs. Only $3 million was due within 12 months. Cash and cash equivalents were $3,513 million, and short-term investments were $199 million. The $2,500 million unsecured revolving credit facility runs to March 2031, and $2,484 million was available after letters of credit. After September 30, 2026, Vertiv paid about $1.45 billion in cash for UtilityInnovation Group, and it can pay up to $1.15 billion more in earnout payments. Adjusted free cash flow was $2,230 million in the first nine months of 2026. The quarterly dividend is $0.0625 per share, and there were 385,060,421 shares on October 26, 2026. As of 2026-09-30. Sources: - https://www.sec.gov/Archives/edgar/data/1674101/000162828026067893/vrt-20260930.htm - https://www.sec.gov/Archives/edgar/data/1674101/000162828026067707/q32026exhibit991vrt10282026.htm - https://www.sec.gov/Archives/edgar/data/1674101/000162828026067393/exhibit991vrt-q42026102720.htm ## Dividends - Dividend yield: 0.1% (last 12 months, at the current price) - Paid per share, last 12 months: $0.252 (4 payments) - Current annual rate: $0.252 ($0.063 x 4 a year) - Payout ratio: 5% of the earnings of the last fiscal year (the year ended 2025-12-31) - Latest ex-dividend date: 2026-09-14, $0.063 per share Dividends per share by year: 2016: $0.00, 2017: $0.00, 2018: $0.00, 2019: $0.00, 2020: $0.01, 2021: $0.01, 2022: $0.01, 2023: $0.025, 2024: $0.113, 2025: $0.177. Source: company filings and market data, read on 2026-11-10. ## Recent events - 2026-10-28: Vertiv reported Q3 2026 results. Net sales rose 61% to $4,313 million, with organic growth of 55%, and organic orders rose more than 100%. Operating profit rose 90% to $984 million, and the adjusted operating margin was 25.2%. Diluted EPS was $1.95, and adjusted diluted EPS rose 78% to $2.21. Vertiv raised its 2026 guidance to net sales of $14,450 million to $14,850 million and adjusted diluted EPS of $7.10 to $7.20. - 2026-10-26: Vertiv completed the acquisition of UtilityInnovation Group for about $1.45 billion in cash. It can pay up to $1.15 billion more in cash if the business reaches EBITDA targets over 12 and 24 months. Vertiv said that the price is about 13 times the expected 2027 EBITDA of the business. On the same day, it completed the acquisition of King Environmental Services, a fluid management and load testing company in Ireland, for an amount that it did not disclose. - 2026-09-02: Vertiv signed the agreement to buy UtilityInnovation Group. The board also declared a quarterly dividend of $0.0625 per share, paid on September 24, 2026. - 2026-07-29: Vertiv reported Q2 2026 results. Net sales rose 24% to $3,274 million, and adjusted diluted EPS rose 60% to $1.52. Operating cash flow was $1,100 million, and cash was more than debt at June 30, 2026. - 2026-04-22: Vertiv reported Q1 2026 results. Net sales rose 30% to $2,650 million, with organic growth of 23%, and adjusted diluted EPS rose 83%. - 2026-03-03: Vertiv issued $2,100 million of senior unsecured notes due from 2036 to 2066 and repaid its term loan in full. It also replaced its $800 million asset-based credit facility with a $2,500 million unsecured revolving credit facility. - 2026-02-11: Vertiv reported 2025 results. Net sales rose to $10,230 million from $8,012 million, with organic growth of 26%. Diluted EPS was $3.41, and adjusted diluted EPS was $4.20. In Q4 2025, organic orders rose about 252%, and the backlog was $15.0 billion at December 31, 2025. ## Latest news and filings - Last earnings: 2026-10-28 (8-K: https://www.sec.gov/Archives/edgar/data/1674101/000162828026067707/) - Next earnings: 2027-01-28 (expected; the company has not confirmed it) | Filed | Form | Headline | Period end | XBRL document | Link | | --- | --- | --- | --- | --- | --- | | 2026-10-28 | 10-Q | Quarterly report for the period ended Sep 30, 2026 | 2026-09-30 | vrt-20260930 | https://www.sec.gov/Archives/edgar/data/1674101/000162828026067893/vrt-20260930.htm | | 2026-10-28 | 8-K | Earnings release and Investor disclosure | | vrt-20261028 | https://www.sec.gov/Archives/edgar/data/1674101/000162828026067707/vrt-20261028.htm | | 2026-10-27 | 8-K | Acquisition or sale completed and Investor disclosure | | vrt-20261027 | https://www.sec.gov/Archives/edgar/data/1674101/000162828026067393/vrt-20261027.htm | | 2026-10-26 | 8-K | Investor disclosure | | vrt-20261026 | https://www.sec.gov/Archives/edgar/data/1674101/000162828026067127/vrt-20261026.htm | | 2026-09-24 | 8-K | Investor disclosure | | vrt-20260924 | https://www.sec.gov/Archives/edgar/data/1674101/000162828026063311/vrt-20260924.htm | | 2026-09-02 | 8-K | New material agreement and Investor disclosure | | | https://www.sec.gov/Archives/edgar/data/1674101/000119312526379306/d472406d8k.htm | | 2026-09-02 | 8-K | Other company news | | vrt-20260902 | https://www.sec.gov/Archives/edgar/data/1674101/000162828026059961/vrt-20260902.htm | | 2026-07-29 | 10-Q | Quarterly report for the period ended Jun 30, 2026 | 2026-06-30 | vrt-20260630 | https://www.sec.gov/Archives/edgar/data/1674101/000162828026050609/vrt-20260630.htm | | 2026-07-29 | 8-K | Earnings release and Investor disclosure | | vrt-20260729 | https://www.sec.gov/Archives/edgar/data/1674101/000162828026050323/vrt-20260729.htm | | 2026-06-18 | 8-K | Shareholder vote results | | vrt-20260617 | https://www.sec.gov/Archives/edgar/data/1674101/000162828026044317/vrt-20260617.htm | Every filing on SEC EDGAR (CIK 1674101): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001674101&type=&dateb=&owner=include&count=40 ## Risks - High: Most demand comes from data centers for AI and cloud computing. If these customers spend less or delay projects, orders and sales can fall fast after a period of strong growth. - Medium: Large cloud and colocation customers give a large part of the orders. They can ask for better contract terms, and a cancelled order lowers the sales that Vertiv expects from its backlog. - Medium: Vertiv competes with large companies such as Schneider Electric, Eaton, Legrand and Huawei. New technology, such as higher rack power and liquid cooling, can change which products customers want. - Medium: Vertiv grows partly through acquisitions. Changes in the value of contingent consideration cost $96 million in the first nine months of 2026, and an acquisition such as UtilityInnovation Group can earn less than planned. - Low: Tariffs and other trade rules can raise the cost of parts and of products that Vertiv makes in other countries. ## Links - Page: https://picks.utilarium.app/company/VRT/ - History of changes: https://picks.utilarium.app/company/VRT/history/ - JSON with full history: https://picks.utilarium.app/data/company/VRT.json > Picks is a personal record of stock picks. It gives general opinions about stocks, including a "Top pick" label. They are not tailored to your needs, goals or risk tolerance. Kevin is not a registered adviser and relies on the general-advice exemption in Canadian securities law (NI 31-103 s.8.25). Do your own research, or ask a registered adviser. Kevin may hold any stock on this site. Prices, intrinsic values and ratings can be delayed or wrong; check the original source. 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