VRT Stock Forecast & Price Target

Vertiv Holdings anticipates organic sales growth of 26%-28%, reflecting robust performance with product sales increasing approximately 34% year-over-year and service sales growing around 10% in the most recent quarter. The company also raised its 2025 adjusted cash EPS guidance by $0.30, indicating a confident outlook driven by improved financial metrics, including a year-over-year segment operating margin expansion of 220 basis points to 22.3%. Additionally, the Americas region has demonstrated exceptional growth, achieving 43% growth and sustaining over 40% growth from the previous quarter, reinforcing Vertiv's strong market position.

Vertiv Holdings has experienced a notable decline in its EMEA margin, which contracted by 710 basis points due to lower operating leverage linked to increased capacity investments made in anticipation of demand. Additionally, the company's recent cut to its full-year adjusted operating margin outlook and the implication of a 35.0x multiple on its 2026 EPS estimate raise concerns about its financial expectations moving forward. Fundamental challenges such as lower-than-expected data center capital expenditures, sluggish adoption of new technologies, and heightened competition could further hinder Vertiv's ability to maintain customer trust and drive sales growth.