Vertiv (VRT) stands out as a prominent player in the critical digital infrastructure sector, providing essential power, cooling, and IT management solutions. With a global presence spanning over 130 countries and its headquarters in Ohio, the company is strategically positioned to benefit from the escalating demand in the data center market, particularly those supporting artificial intelligence applications. Their comprehensive suite of solutions, including thermal management and power distribution, ensures the stability and efficiency of digital ecosystems. The company's stock performance has been exceptional throughout 2025, significantly outperforming broader market indices like the S&P 500, a testament to its strong market position and growth trajectory.
Vertiv's impressive financial performance in 2025 has drawn significant attention from analysts. William Blair recently issued an \"Outperform\" rating for Vertiv, highlighting its crucial role in addressing the surging requirements for AI-powered data center infrastructure. The rapid expansion of generative AI, sophisticated cloud software, and high-performance computing is anticipated to drive a substantial increase in data center capacity, with projections indicating an annual rise of 13-20 GW through 2030, potentially leading to an additional 100 GW in new capacity. Vertiv, with approximately 80% of its revenue stemming from the data center industry, is particularly well-equipped to serve this expanding market. The company maintains robust relationships with key industry players, including chip manufacturers, hyperscalers, and colocation providers.
Estimates from William Blair suggest that each additional megawatt of deployed data center capacity translates into $2.75 million to $3.5 million in revenue for Vertiv. The company's substantial backlog, covering at least 78% of its anticipated revenue for the next 12 months, provides strong visibility into future sales. Vertiv's Q2 2025 financial results, announced on July 30, exceeded market expectations across both earnings and revenue. The company reported non-GAAP earnings of $0.95 per share, representing a 42% year-over-year increase, while revenue soared by 35% to $2.64 billion, significantly surpassing analyst forecasts. This strong performance marks a notable acceleration in business momentum compared to the previous year.
Product revenues, constituting the majority of Vertiv's total revenue at 82.1%, experienced a 39.3% increase year-over-year, while service revenues also saw a healthy rise of 18.7%. The company's backlog reached an impressive $8.5 billion, a 21% increase from the end of 2024, underscoring the strong and sustained demand for its offerings. Vertiv's adjusted operating profit rose by 28% to $489 million, with a non-GAAP operating margin of 18.5%. The free cash flow for the quarter was $277 million, and the company concluded the quarter with $1.64 billion in cash, cash equivalents, and marketable securities.
Looking ahead, Vertiv has revised its full-year 2025 guidance upwards, anticipating revenues between $9.925 billion and $10.075 billion, adjusted EPS in the range of $3.75 to $3.85, and free cash flow between $1.375 billion and $1.425 billion. The company projects operating margins to be between 19.7% and 20.3%, signaling continued confidence in the robust demand for data center solutions. Wall Street analysts have largely shown strong support for Vertiv Holdings, with a consensus \"Strong Buy\" rating. Out of 20 analysts, 17 have issued a \"Strong Buy,\" one a \"Moderate Buy,\" and two a \"Hold\" rating, reflecting a broadly positive outlook on the company's future prospects.