Vertiv Holdings (VRT) is scheduled to report its third-quarter earnings on October 28. Despite a 21% decline over the past month due to concerns over debt-funded AI spending and doubts about the sustainability of AI-related transactions, most Wall Street analysts remain bullish on VRT stock. On Monday, the stock rose 2.8%, bringing its year-to-date gain to 23.4%. Vertiv also announced the completion of its acquisition of King Environmental Services Ltd., a Europe-based service provider offering fluid management, commissioning, and load testing services for high-density liquid-cooled data centers.
Analysts' views ahead of Vertiv's third-quarter earnings report
Before the Q3 earnings report, Roth analyst Justin Clare reiterated a "Buy" rating on Vertiv stock but lowered the price target from $355 to $335 to reflect a higher interest rate environment and lower valuation multiples. The four-star analyst believes that, in the short term, Q3 execution will be critical to determining whether the company can deliver the strong revenue acceleration implied in its Q4 guidance, and improved manufacturing efficiency could create upside potential for earnings.
Clare expects Vertiv to report $3.76 billion in revenue for the third quarter of 2026 and adjusted earnings per share of $1.82, broadly in line with the midpoint of guidance. He noted that VRT’s guidance implies approximately 40% year-over-year revenue growth, a significant acceleration compared to the second quarter of 2026. However, Clare stated that despite management’s comments during the mid-quarter update indicating improved execution, ongoing integration challenges related to the OneCore and SmartRun products may limit further upside to revenue.
In addition, Clare noted that the recent decline in VRT’s stock price reflects growing market concerns about the financing of AI infrastructure and the sustainability of data center investments. Despite these concerns, the analyst believes that underlying demand remains strong, given the robust order trends reported by Vertiv’s main competitors. As a result, Clare raised its 2027 forecast, citing sustained strong demand and operating leverage.
Meanwhile, Bank of America analyst Andrew Obin reaffirmed his “Buy” rating on VRT stock with a price target of $375. The five-star analyst noted that Vertiv’s second-quarter revenue missed expectations due to production challenges in its Infrastructure Solutions Americas segment. However, Obin expects VRT stock to deliver “above-consensus revenue and raised guidance” in the third quarter of 2026. He forecasts third-quarter 2026 revenue to reach $3.8 billion, representing a 16% sequential growth. Obin stated that two data center industry conferences he attended indicated continued strong demand, and Vertiv’s brand remains “unscathed.”
Is it worth buying VRT stock now?
Overall, based on 18 buy, 1 hold, and 1 sell ratings, Wall Street’s consensus rating for Vertiv Holdings stock is “Strong Buy.” The average target price for VRT stock is $324.61, indicating a potential upside of 62.5%.
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