Vertiv(US:VRT) 247Wallst·2026-02-15 18:34Core Insights - Vertiv's stock surged 20% this week, driven by a remarkable 252% year-over-year growth in orders, primarily fueled by increasing AI data center spending [1] - The company reported a backlog of $15 billion, which is up 109% year-over-year, and a book-to-bill ratio of 2.9x, indicating strong future revenue potential [1] - Vertiv's guidance for 2026 projects revenue between $13.25 billion and $13.75 billion, reflecting 27-29% organic growth and a 43% increase in EPS at the midpoint [1] Group 1: Stock Performance - Vertiv's stock has increased by 44.82% year-to-date and 115% over the past year, trading at 69x trailing earnings and 38x forward earnings [1] - The stock closed at $234.63, while the S&P 500 declined by 1.29% during the same period [1] - Institutional ownership stands at 80%, with an analyst target price of $259.11, indicating strong professional confidence in the stock [1] Group 2: Institutional Demand - Significant institutional inflows have been noted, with Vertiv's stock climbing 1,360% since February 2023, driven by systematic capital allocation rather than retail speculation [1] - The company beat EPS estimates by 5.4% in its Q4 2025 earnings report, with earnings of $1.36 per share [1] Group 3: Order Growth and Market Position - Vertiv's order growth of 252% year-over-year signals an acceleration in AI data center capital expenditures, with over 80% of its revenue derived from data center infrastructure [1] - The CEO emphasized Vertiv's leadership in the complex data center market, highlighting the demand for AI-capable infrastructure [1] Group 4: Future Guidance - The 2026 revenue guidance of $13.25 to $13.75 billion suggests robust organic growth, with adjusted EPS guidance of $5.97 to $6.07, indicating a 43% growth at the midpoint [1] - The company anticipates generating $2.1 to $2.3 billion in adjusted free cash flow, providing management with significant resources for future investments [1]