AI Experts Favor Shares of This Data Center Corporation
Vertiv, a global leader in critical digital infrastructure, has announced impressive results for Q2 2025. The company reported net sales of approximately $2.64 billion, marking a significant 35% year-over-year increase. Additionally, adjusted earnings per share (EPS) came in at $0.95, representing a 42% increase from the prior year and surpassing analyst expectations.
Following these robust results, Vertiv has raised its full-year 2025 guidance. The company now expects revenues to be between $9.925 billion and $10.075 billion, with organic net sales growth of 23% to 25%. Non-GAAP EPS is anticipated to be between $3.75 and $3.85 per share.
Analysts have responded positively to Vertiv's performance. The Zacks Consensus Estimate for 2025 earnings has been revised upward to about $3.82 per share, reflecting a 34% year-over-year increase. This strong performance has earned Vertiv a Zacks Rank #1 (Strong Buy) based on earnings estimate revisions and other factors.
For the third quarter of 2025, Vertiv anticipates revenues to be between $2.51 billion and $2.59 billion, with non-GAAP EPS ranging from $0.94 to $1.00 per share. The current consensus EPS estimate stands at 96 cents per share, representing a 26% year-over-year increase.
Immediately following the strong Q2 report, Vertiv shares rose as much as 3.8% in early trading. Since the earnings release, the stock has maintained a modest gain of about 1.1%. As of mid-August 2025, the stock price traded around $133. Some analysts view the stock as slightly overvalued, with a fair value near $119, but support this valuation due to strong growth metrics and profitability ratios.
The positive momentum for Vertiv through August 2025 is driven by robust demand in data center infrastructure, particularly AI-enabled systems. As a company specializing in high-density, prefabricated power, and cooling systems suited for GPU workloads, Vertiv is well-positioned to benefit from this trend.
In 2025, Vertiv Holdings delivered standout stock performance, with a 23% increase. This growth is attributed to the expanding adoption of generative AI, cloud software, and high-performance computing, which is driving a projected annual increase in data center capacity. Roughly 80% of Vertiv's revenue is derived from the data center industry.
The company's backlog stood at $8.5 billion, up 21% from 2024's end. Product revenues grew 39.3% year over year, while service revenues rose 18.7%. Over the past 12 months, Vertiv stock surged nearly 97%.
Vertiv operates in more than 130 countries and is headquartered in Ohio. The stock's mean price target of $154 leaves just 11% in upside potential. The company posted non-GAAP earnings of $0.95 per share, a 42% increase year over year. Vertiv anticipates operating margins in the 19.7%-20.3% range for the remainder of 2025. A major portion of Vertiv's gains occurred after April, with shares up 46% over the past three months. The company's backlog covers at least 78% of expected revenue over the next 12 months. Adjusted operating profit climbed 28% to $489 million.
In conclusion, Vertiv's strong Q2 2025 results and raised full-year guidance indicate a positive outlook for the company. The company's focus on data center infrastructure, particularly AI-enabled systems, positions it well for continued growth in the coming months. Vertiv Holdings was recently rated "Outperform" by William Blair analysts.
- Given Vertiv's strong Q2 2025 results and emphasis on technology-driven sectors like AI-enabled systems, investors might consider allocating their resources towards this stock-market listing for potential gains in the stock-market.
- With Vertiv's impressive rise in revenue and earnings, particularly in the data center industry, it's worth exploring opportunities in the financing of this technology giant for those interested in investing in the future of the finance sector.
