VRT Stock Forecast & Price Target

Vertiv Holdings is forecasting impressive organic sales growth of 26%-28%, building on a strong previous quarter where product sales increased approximately 34% year-over-year and service sales rose around 10%. The company's adjusted cash EPS guidance for 2025 has also been uplifted by $0.30, reflecting an 8% increase in the midpoint estimate, and segment operating margins rose significantly, expanding by 220 basis points year-over-year to reach 22.3%. Additionally, the Americas region demonstrated robust performance with a 43% growth, contributing to a positive outlook for the company's future operational efficiencies and margins.

Vertiv Holdings faces a negative outlook due to multiple financial weaknesses, including a decline in operating margins and lower-than-expected demand indicators. The company's adjusted operating margin in 3Q25 showed a slight improvement but remains concerning, particularly as EMEA experienced a 710 basis point contraction driven by increased capacity investments ahead of anticipated demand. Moreover, potential headwinds such as reduced capital expenditures in data centers, slower adoption of innovative cooling technologies, and declining pricing power could further exacerbate the company's financial challenges.