Vertiv surges on record backlog as AI data center demand powers earnings
Critical infrastructure provider raises 2026 outlook after orders triple and backlog hits $15 billion
Vertiv Holdings shares surged as much as 14.3% in premarket trading on Wednesday after the critical digital infrastructure provider reported fourth-quarter results that exceeded expectations and issued an aggressive 2026 outlook fueled by surging demand for artificial intelligence data center equipment.
The Westerville, Ohio-based company reported net sales of $2.88 billion for the fourth quarter of 2025, a 23% increase from the prior year and in line with Wall Street estimates. Adjusted diluted earnings per share of $1.36 topped analyst consensus of $1.30, while operating profit climbed 27% to $580 million.
But the most striking metric came from order growth, which demonstrated the accelerating momentum in AI infrastructure deployments. Organic orders increased approximately 252% compared to the fourth quarter of 2024, representing a 117% sequential jump from the third quarter. The resulting book-to-bill ratio reached approximately 2.9 times, driving backlog to a record $15 billion—up 109% year-over-year.
"Fourth quarter performance demonstrates Vertiv's leadership in an increasingly complex and demanding data center market," said Giordano Albertazzi, the company's chief executive officer. "Our results reflect significant growth in orders, sales, margins and cash, demonstrating our ability to scale while maintaining operational execution."
The adjusted operating margin expanded 170 basis points to 23.2%, while operating cash flow increased 136% to $1.005 billion and adjusted free cash flow jumped 151% to $910 million compared to the prior year's fourth quarter. Net leverage stood at approximately 0.5 times at quarter-end, positioning the company for continued investment.
Vertiv's full-year 2025 performance was equally robust, with organic sales growth of 26%, diluted EPS increasing 166%, and adjusted diluted EPS rising 47%. Operating cash flow for the year reached $2.1 billion, while adjusted free cash flow totaled $1.89 billion—up 60% and 66% respectively from 2024.
The company's guidance for 2026 significantly exceeded analyst expectations, reflecting confidence that the AI-driven data center expansion has substantial runway ahead. Vertiv forecast net sales between $13.25 billion and $13.75 billion, implying organic sales growth of 27% to 29% compared to 2025—well above the consensus estimate of $12.39 billion.
Adjusted diluted EPS guidance of $5.97 to $6.07 also surpassed analyst expectations of $5.33, representing 43% growth at the midpoint compared to full-year 2025 results. The company projects adjusted free cash flow between $2.1 billion and $2.3 billion for 2026.
"This momentum is expected to continue into 2026, with record backlog providing clear visibility for another year of significant growth," Albertazzi said, noting that the company plans to increase ER&D investments and expand production capacity to meet demand.
The order strength was broad-based across all regions, technologies, and customers, with particular acceleration in the Americas region and among hyperscale and colocation data center providers. Vertiv's trailing twelve-month organic orders increased approximately 81% year-over-year, reflecting what analysts describe as a structural shift in data center infrastructure requirements driven by AI computing demands.
Analysts maintained overwhelmingly positive ratings ahead of the report, with a consensus "Strong Buy" rating and average price target of $200.16, according to market data. Evercore analyst Amit Daryanani reiterated a Buy rating with a $210 price target, expecting margins to stabilize around 25% in the long term.
The stock, which has surged more than 270% over the past year, was trading at approximately $199.62 in regular trading on Tuesday, with a market capitalization exceeding $77 billion. The shares have been among the top performers in the industrial sector as investors increasingly focus on companies that enable AI infrastructure buildout.
For the first quarter of 2026, Vertiv expects net sales between $2.5 billion and $2.7 billion with adjusted diluted EPS of $0.95 to $1.01, representing 48% to 58% growth from the prior year period.
"These results reflect years of strategic focus on technology leadership and value creation," said Dave Cote, Vertiv's executive chairman. "Our commitment to developing industry-transforming technology positions Vertiv as a partner for complex challenges and drives sustainable, long-term growth."