Vertiv Stock Skyrocketed Last Year: Is It Still a Buy for 2026?
Key Points
Vertiv's strong 2025 performance was driven by AI data center demand and key partnerships.
The company reported strong financial results and stock performance, with notable growth in revenue and orders.
Vertiv is well-positioned for 2026, with expansion plans and potential S&P 500 inclusion.
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Investors in power and cooling technology company and Nvidia partner Vertiv (NYSE: VRT) enjoyed an excellent 2025, with the stock rising 42.6% amid strengthening data center demand. However, it wasn't all plane sailing with the stock declining heavily to mid-April before bouncing strongly. Here's what happened in 2025 and how the company is set up for 2026 and beyond.
Vertiv rides the artificial intelligence spending wave
It's no secret that Vertiv's digital infrastructure is crucial to the data centers that drive the artificial intelligence (AI) revolution. The boom in investment has led to burgeoning order growth and a rapidly expanding backlog. To put the $9.5 billion backlog at the end of the third quarter (likely higher now) into context, the Wall Street consensus for Vertiv's sales in 2026 is $12.4 billion. As such, Vertiv has strong visibility into its revenue.
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Data source: Vertiv presentations, Chart by author.
Key partnerships with Nvidia, Oklo, and Caterpillar will enhance growth prospects
Vertiv's management isn't resting on its laurels. That company is chaired by a legendary figure in the industrial sector, former Honeywell CEO David Cote, with the executive branch led by CEO Giovanni Albertazzi, a company veteran from its days as part of Emerson Electric.
With this leadership, Vertiv is getting ready for further growth through its partnership with Nvidia. This year, Vertiv will launch a data center power system designed to work with Nvidia's new 800-V high-voltage direct current (HVDC) data center architecture, which is set to arrive in 2027.
In addition, Vertiv is partnering with Oklo to develop power and thermal management solutions for data centers powered by Oklo's nuclear power plants. It's also collaborating with Caterpillar to integrate its power and cooling solutions with Caterpillar's industrial gas turbines that deliver power to data centers – a fast-growing business for Caterpillar.
Image source: Getty Images.
Is Vertiv Stock a buy now?
In 2025, Vertiv faced higher costs due to tariffs, which slowed profit growth. With these costs included, the company's financials should become clearer. Wall Street expects revenue to grow in the high teens and free cash flow (FCF) to rise by almost 25% annually over the next few years. The stock trades at 43.5 times expected FCF for 2026, so it may not appeal to those who are cautious about the AI sector.
However, Vertiv raised its revenue guidance at every earnings presentation in 2025. If this momentum continues, supported by its partnerships with Nvidia, Caterpillar, and Oklo, the company could have another great year.
Should you buy stock in Vertiv right now?
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Emerson Electric, Honeywell International, and Nvidia. The Motley Fool has a disclosure policy.
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