VRT Stock Forecast & Price Target

Vertiv Holdings is projected to achieve organic sales growth of 26%-28%, following a notable performance in the previous quarter where product sales increased approximately 34% year-over-year, and service sales rose around 10%. The company's strong performance is further evidenced by a raised guidance for 4Q25 organic sales growth, now expected to range between 18%-22%, alongside a significant boost in 2025 adjusted cash EPS guidance by $0.30, reflecting an 8% increase. Additionally, segment operating margins have expanded impressively by 220 basis points year-over-year, reaching 22.3%, which surpasses expectations and underscores the company's operational efficiency and growth potential.

Vertiv Holdings has experienced a decline in adjusted operating margin and has issued a lowered outlook for 4Q25, following a prior reduction of its full-year margin projections, indicating challenges in maintaining profitability. The company's EMEA segment reported a noteworthy margin contraction of 710 basis points, attributed to increased capacity investments without corresponding demand, further highlighting operational inefficiencies. Additionally, various factors, including lower-than-expected capital expenditures in data centers and competition from key industry players, pose significant risks to Vertiv's growth and market position, contributing to a negative outlook for the stock.