Vertiv (VRT) reports third-quarter results on Oct. 28, with the stock down 39% from its recent peak despite five straight EPS beats and a 21.89% drop over the past month to $194.31. In the second quarter, adjusted EPS rose 60% to $1.52 and revenue climbed 24.1% to $3.27 billion, but organic growth slowed to 18%, which management attributed to supply chain congestion and the timing of phased projects. Management raised full-year adjusted EPS guidance to $6.65 to $6.75, and guidance calls for organic growth of about 35%, while consensus EPS stands just above the $1.80 guidance midpoint. The key questions are whether delayed AI projects have shipped and whether new capacity came online on schedule, with 2027 orders also seen as critical. The article argues that if shipment timing shifts again, the valuation reset could keep going.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Vertivdata centersartificial intelligenceearningssupply chain
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/23/2026 | 211.00 |
| Change that session | -0.57% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Vertiv Stock Jumps 7 % After Record Losing Streak as SpaceX and Super Micro Results Revive AI Power Trade
Vertiv shares rose more than 7% in early Wednesday trading, gaining $15.43 to $218.98 and lifting the company's market value to about $84.3 billion after a record 11-session losing streak. The rally followed strong results from SpaceX, which reported third-quarter revenue of $14.58 billion and said its AI cloud business grew about ninefold, and from Super Micro Computer, which forecast fiscal first-quarter revenue of $18.5 billion to $19.5 billion. SpaceX also expects to spend $35 billion to $40 billion on capital projects in the fourth quarter, mostly for AI computing infrastructure. Vertiv reports third-quarter results on Oct. 28, forecasting adjusted earnings of $1.77 to $1.83 per share, while analysts expect $1.82 per share on revenue of about $3.75 billion. The company's backlog reached $15 billion at the end of 2025, more than double the year before.
- Vertiv, Nvidia target 10-week cut in AI power, cooling setup
- What Is Vertiv Holdings Co (VRT) Really Changing With 14 Day AI Factory Builds?
Vertiv and NVIDIA launched DSX POD, a modular AI factory reference design targeting 14-day deployment cycles, compared with the traditional 6-month timeline for AI builds. DSX POD uses pre-engineered power and cooling modules along with advanced virtualization. Vertiv is running a multiphase DSX POD implementation in Norway and partnering with Dassault Systèmes to design and validate AI factories virtually. Installations are anticipated to begin in early 2027.
- Dassault Systèmes and Vertiv Team to Accelerate AI Factory Design and Deployment
Dassault Systèmes (DSY.PA) and Vertiv (VRT) announced a collaboration to configure, simulate and validate AI factory infrastructure before construction begins, combining the 3DEXPERIENCE platform with Vertiv's digital infrastructure expertise. The model-based approach builds on the Vertiv SmartRun virtual twin and extends to Vertiv OneCore, targeting NVIDIA Vera Rubin DSX AI Factory reference designs. Targeted customer outcomes include reaching a validated AI factory solution up to 10x faster and cutting the defined infrastructure deployment period by up to 50%. In Vertiv's model, the approach could bring capacity online about 10 weeks sooner than a conventional baseline and produce up to 30% more cumulative token output within 12 months, though this gain stems only from earlier facility readiness, not a measured customer result.
- Vertiv Targets Up to 30% More Cumulative AI Token Output in First 12 Months Using NVIDIA DSX, Polar Deploys Approach at Norway Site
Vertiv and NVIDIA introduced an AI factory approach that pairs rapid configuration and virtual validation of pre-engineered reference designs with factory-built deployment, targeting up to 30% more cumulative token output within 12 months with the same installed capacity under defined assumptions. In the modeled scenario, time from requirements to a validated AI factory design drops from about 30 days to three days, and infrastructure deployment falls from about 90 days to 45 days. Combined, these stages shrink from about 120 days to 48 days, making productive AI capacity available roughly 10 weeks sooner. Polar Data Centers is applying the model to the first 41 MW phase of its AI data center at Herøya, Norway, scalable to 100 MW, using Vertiv prefabricated power and thermal modules, SmartRun overhead infrastructure and SmartMod.
- Where Will Vertiv Stock Be in 1 Year ? | The Motley Fool
Vertiv (VRT), a supplier of cooling and power systems for data centers, hit a record $376.06 on May 14 on AI-driven demand, but now trades near $211. Its revenue rose from $5.0 billion in 2021 to $10.2 billion in 2025, and adjusted EPS from $0.76 to $4.20, with a $15 billion backlog at the end of Q2 2026. For 2026, it expects revenue to grow 37% to $14 billion and adjusted EPS to rise 60%, and the stock trades at 31 times that estimate. The pullback reflects a slight miss on Q2 revenue estimates, a $1.45 billion cash acquisition of UtilityInnovation Group that may pressure near-term margins, and rising interest rates that compressed valuations of high-growth AI stocks. If Vertiv meets analyst expectations and trades at 30 times earnings by next October, the article estimates its stock could rise about 30% to $276, still below its record high.
Related markets
Latest news
- The Nasdaq Just Had Its Worst Day in 4 Months. Here's the Level That Would Signal a Correction, and What History Says Investors Can Do About It.
The Nasdaq Composite fell 2.6% on Oct. 22 to close at 26,008.86, its largest drop since a 4.2% decline on June 5. A correction, a fall of at least 10% from the highs, would require a further 4.1% drop to below 24,950, which would mark the third correction this year. Corrections have been occurring more frequently, but recoveries have generally been quick, with the 2022 to early 2024 slump the main exception. The article attributes the choppier market to fast-spreading information, easy trading, and concentration in AI-linked mega-cap stocks that make up much of the S&P 500. It says holding quality companies, index funds, or ETFs is the simplest way to endure corrections, and suggests reviewing whether large positions are highly correlated.
- Oklo Is Down 61% This Year Despite a Real Technical Milestone. Here's the Disconnect Between the Stock and the Science.
Oklo stock has fallen more than 60% this year, and the VanEck Uranium and Nuclear ETF (NLR) has dropped 25%, as Wall Street has grown less confident about nuclear stocks. Oklo's AI power opportunity, once its main tailwind, has become a headwind as investors question whether spending on AI infrastructure will deliver big returns. The company has reached technical milestones, including first criticality of its Groves test reactor in Texas in August, NRC approval of principal design criteria for its Aurora powerhouse in May, and DOE approval of a preliminary safety analysis for a reactor in Idaho. However, Oklo remains unprofitable, is still burning cash, and lacks regulatory approval for Aurora, whose planned 2028 launch is not guaranteed given its history of delays. The author suggests a small speculative position may fit some investors, while less aggressive investors may prefer other growth stocks.
- Stock Market Sell-Off: History Says This Is the Best Move to Make Right Now
The Nasdaq Composite has fallen 7.6% from its early October highs, with AI stocks among the main drags on the index. The author argues against panic selling, noting that the Fidelity NASDAQ Composite Index ETF (ONEQ) fell 33% in 2022 before soaring 44.6% in 2024, while investors who moved to cash missed that rebound. As of Oct. 23, ONEQ had gained 150% since the end of 2022. The author says the effective approach is to stay the course, keep regular investments going so each contribution buys more at lower prices, and treat a pullback as a chance to add quality stocks whose declines are unrelated to their fundamentals. The article cites John Bogle's “stay the course” philosophy, which Warren Buffett and Benjamin Graham would also agree with.
- Vertex Pharmaceuticals Gets 96% of Product Sales From Treatments for 1 Disease. Here's Why That's About to Change.
Vertex Pharmaceuticals' cystic fibrosis (CF) therapies brought in about $3.2 billion of its $3.33 billion second-quarter revenue, roughly 96%. The company expects $500 million or more in 2026 sales from Journavx and Casgevy, and recently reported positive Phase 2b data for inaxaplin in APOL1-mediated kidney disease, with reduced urine protein and no serious side effects. Q2 revenue rose 12% year over year, EPS reached $4.31, and full-year revenue guidance was raised to $13.1 billion to $13.2 billion, while the $10 billion Crinetics Pharmaceuticals acquisition closed on Sept. 1. Shares are up more than 15% so far this year, and the article suggests this gain does not appear to come only from hype.
- More than 400,000 protest across France, challenging Macron as Paris clashes erupt
Mass protests across France over school funding and living costs drew 410,000 people according to the Interior Ministry and nearly 800,000 according to the CGT union, with clashes in Paris ending a march that had begun peacefully. Police used tear gas and water cannons near Porte de Vincennes, where 64 people were arrested, and similar clashes were reported in Marseille, Lyon, Strasbourg, Nice and Nantes. Authorities banned rallies in cities including Lyon, Nice and Montpellier, which unions criticized as violations of freedom of expression. Marseille police counted 17,000 protesters against 100,000 by the CGT, and Toulouse authorities counted 26,500, while thousands marched in Orléans against the far right as Marine Le Pen's National Rally held a congress there. Macron's popularity is at its lowest since he took office in 2017, and Interior Minister Laurent Nuñez acknowledged police lost control in some cities during the unrest, which damaged or looted some 3,000 shops.
- More than 400 , 000 protest across France , challenging Macron as Paris clashes erupt
More than 400,000 people rallied across France on Saturday over school funding and soaring living costs, challenging President Emmanuel Macron, and the Paris march ended in clashes in which masked protesters hurled objects and fireworks at police, who responded with tear gas, sound grenades and water cannons. The government said police made nearly 1,000 arrests, a figure expected to rise. The Interior Ministry put turnout at 410,000, below the 550,000 of the previous weekend, while the CGT union estimated nearly 800,000. The movement began as a protest over staff shortages at one high school and spread into a national demand for education funding and help with fuel and other costs, testing Macron in his final months before May's election. Interior Minister Laurent Nuñez said 70,000 officers helped prevent a repeat of the previous weekend's widespread looting.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.