Vertiv Stock Surges 13% as AI Data Center Boom Doubles Orders and Equipment Maker Raises Its 2026 Forecast

Shares of Vertiv Holdings Co. jumped nearly 13% on Wednesday. The maker of power and cooling equipment for data centers reported that its orders more than doubled and raised its full-year forecast, as demand from the artificial intelligence boom accelerated.

Vertiv shares rose $26.44, or 12.68%, to $235.00 in early trading on the New York Stock Exchange. More than 5 million shares changed hands, and the company's market value rose to about $90.7 billion. The stock had risen more than 15% in premarket trading.

Third-quarter results

For the third quarter, Vertiv reported:

Net sales of $4.31 billion, up 61% from a year earlier, including organic growth of 55% Organic orders up more than 100% from a year earlier Adjusted earnings of $2.21 a share, up 78% Adjusted operating profit of $1.09 billion, up 83%, with an adjusted operating margin of 25.2% Adjusted free cash flow of $652 million, up 50%

"We are in the middle of the largest infrastructure buildout and it's accelerating," Chief Executive Giordano Albertazzi said.

"Our more than 100% organic orders growth year over year and our overall performance are clear testaments to that," he added.

Guidance raised

Vertiv raised its full-year 2026 forecast:

Net sales of $14.45 billion to $14.85 billion, up $650 million at the midpoint, implying organic growth of 37% to 39% Adjusted earnings of $7.10 to $7.20 a share, up about 70% at the midpoint Adjusted free cash flow of $2.6 billion to $2.8 billion

For the fourth quarter, the company forecast net sales of $4.31 billion to $4.51 billion, with organic growth of 49% to 51%, and adjusted earnings of $2.22 to $2.28 a share.

AI powers demand

Vertiv supplies the power distribution, thermal management and cooling systems needed to run data centers. Demand has surged as technology companies build facilities for AI, which require far more power and generate far more heat than traditional computing.

Liquid cooling has become especially important, because the latest AI chips run too hot for conventional air cooling. Vertiv has positioned itself as a leading supplier of these systems.

The doubling of organic orders suggests demand will remain strong well into next year, since orders typically become revenue months later.

AI trade revives

Vertiv's results added to a revival of the AI trade this week. On Monday, Anthropic, the developer of the Claude AI models, filed for an initial public offering. On Wednesday, South Korean chipmaker SK Hynix reported record profit and said it expects memory demand to exceed supply through 2030.

The results also come ahead of quarterly earnings this week from Alphabet, Microsoft, Amazon and Meta Platforms, whose spending on AI infrastructure drives demand for Vertiv's equipment.

Volatile stock

Despite Wednesday's surge, Vertiv shares are up only about 5% over the past 52 weeks, reflecting sharp swings. AI infrastructure stocks fell in recent months amid concerns about the scale and financing of AI spending, and worries that some data center projects could be delayed.

Power availability has emerged as a constraint across the industry. That could benefit companies like Vertiv that help data centers use electricity more efficiently.

Strong balance sheet

Vertiv said it had $6.2 billion in liquidity and a net cash position. That gives it flexibility to invest in capacity and pursue acquisitions. Acquisitions contributed about 6 percentage points of sales growth in the quarter.

What to watch

Investors will watch whether Vertiv can expand manufacturing capacity quickly enough to meet surging demand, how it manages supply chain constraints, and whether the AI spending boom continues as tech giants update their capital spending plans.

_This article is for information only and does not constitute financial advice._