Vertiv Holdings LLC’s stock is heating up on Wednesday after the digital-infrastructure supplier lifted its 2025 sales forecast on demand from customers looking to build up data centers and artificial-intelligence computing.
Vertiv’s stock rallied 17% in morning trades.
The company reported a 20% rise in orders for products such as cooling systems and power components and raised its second-quarter revenue outlook to $2.33 billion to $2.38 billion, ahead of the FactSet consensus estimate of $2.27 billion.“We continue to see accelerated scaling of AI deployments across the data center market,” Vertiv said.
The company said its partnership with artificial-intelligence chip maker Nvidia Corp. continues to position it “at the forefront of AI factory deployment at industrial scale.”
Vertiv said it expects adjusted second-quarter earnings of 77 cents a share to 85 cents a share, while Wall Street analysts expected earnings of 88 cents a share.
It lifted the midpoint of its 2025 revenue forecast by $250 million to a range of $9.33 billion to $9.58 billion, ahead of the analyst estimate of $9.18 billion. The $250 million boost includes $150 million from higher organic sales and a $100 million benefit from foreign exchange.
Vertiv said it’s assuming that tariff rates as of Tuesday will remain constant through the end of the year.
“We believe that our diverse manufacturing footprint, operational flexibility, and commercial strategies will progressively lessen the tariff impact as the year progresses,” the company said.Most of Vertiv’s supply from Mexico falls under the 2018 USMCA free-trade agreement between Mexico, Canada and the U.S., but Vertiv said its goal is to have all of its components made in Mexico to qualify for USMCA.
A single-digit percentage of Vertiv’s supply for its U.S. factories comes from China.
Vertiv said it’s building up its U.S. manufacturing and “further rebalancing of global supply chain by sourcing from no- or low-tariff countries.”
For the first quarter, Vertiv reported adjusted earnings of 64 cents a share, ahead of the FactSet consensus estimate of 61 cents a share. Its first-quarter revenue of $2.04 billion topped the analyst estimate of $1.94 billion.
Oppenheimer analyst Noah Kaye reiterated an outperform rating on Vertiv and said the company’s higher revenue forecast “contemplates that active tariff rates remain constant through year-end, with net impacts lessening moving into 2H.”
Ahead of Wednesday’s moves, Vertiv’s stock was down 36.8% so far in 2025, while the S&P 500 has fallen by 10.1%.
