Should You Buy, Sell, or Hold Vertiv Stock Before Q4 Earnings?

Core Insights - Vertiv (VRT) is expected to report its fourth-quarter 2025 results on February 11, 2026, with revenues projected between $2.81 billion and $2.89 billion, and organic net sales anticipated to grow by 18% to 22% [1][10] - The Zacks Consensus Estimate for fourth-quarter revenues is $2.88 billion, reflecting a year-over-year growth of 22.65%, while the earnings consensus is $1.29 per share, indicating a 30.30% year-over-year increase [2] - Vertiv has consistently outperformed earnings expectations, achieving an average earnings surprise of 14.89% over the last four quarters [2] Revenue Growth Factors - Vertiv is capitalizing on strong AI-driven order growth, particularly in the data center sector, which aligns with its strengths in thermal management solutions [3] - The company anticipates continued growth in the Americas and APAC regions, with organic sales growth of 43% in the Americas and 21% in APAC year-over-year in Q3 2025, projecting high 30% growth in the Americas and mid-single-digit growth in APAC for Q4 2025 [4] Operational Performance - In Q3 2025, Vertiv achieved a 22.3% adjusted operating margin, exceeding guidance, and expects an adjusted operating profit of $639 million with a margin of 22.4% for Q4 2025 [5] Market Position - Vertiv shares have increased by 27.2% over the past six months, outperforming the Zacks Computer & Technology sector's growth of 10.6% and the Computer IT Services industry's decline of 15.2% [7] - The company has outperformed peers such as Super Micro Computer and Hewlett-Packard Enterprise, with the latter's shares rising by 12.8% while Super Micro's shares fell by 34.1% [8] Strategic Partnerships - Vertiv has a strong partner base, including companies like NVIDIA, Caterpillar, and Intel, which is driving order growth [15] - The company launched gigawatt-scale reference architectures for NVIDIA's Omniverse DSX Blueprint, enhancing deployment capabilities for next-generation AI factories [16] Valuation and Investment Opportunity - Vertiv's current valuation is considered stretched, with a price/book ratio of 19.37 compared to the sector's 10.40 [12] - The company holds a Zacks Rank 2 (Buy) and a Growth Score of A, indicating a strong investment opportunity [17]