Vertiv Jumps 16.5% as Q3 Sales Rise 61%, Organic Orders Double and Guidance Is Raised

VRT shares rose 16.48% to close at $242.94 on Oct. 28 after the data-center power and cooling supplier reported a third quarter well ahead of expectations. Net sales climbed 61% to $4.31 billion, with 55% organic growth and about 6 points from acquisitions, according to the company's release. Adjusted EPS rose 78% to $2.21, above the $1.82 Wall Street expected, and adjusted operating margin widened 290 basis points to 25.2%.

Demand indicators were stronger still. Organic orders grew more than 100% year over year, though Executive Chairman Dave Cote said on the call that Vertiv will stop disclosing orders going forward. Customers had prepaid $4.1 billion for undelivered equipment as of Sept. 30, up from $1.1 billion a year earlier, per Stock Titan. The Americas grew 75%, Asia-Pacific 50% and EMEA 23%. "We are in the middle of the largest infrastructure build-out, and it's accelerating," CEO Giordano Albertazzi said.

Vertiv raised its full-year outlook across the board: adjusted EPS to a $7.15 midpoint, about 70% growth, from a prior $6.65 to $6.75 range, and net sales to a $14.65 billion midpoint, per the release. Fourth-quarter guidance calls for about $4.41 billion in sales and adjusted EPS of $2.25. Free cash flow rose 50% to $652 million in the quarter.

Two caveats temper the beat. CFO Chamberlin said about $100 million to $150 million of second-quarter revenue slipped into Q3, flattering the comparison, and the end of order disclosure removes a closely watched demand signal. Even after the jump, the stock sits well below its 52-week high of $379.94, after falling 15.6% following its Q2 report in July, per Investing.com. Watch Q4 delivery against the $2.25 EPS guide and any 2027 commentary on data-center capacity.