Vertiv targets 50% EPS growth as Q2 earnings near with $15B backlog

Vertiv Holdings reports second-quarter earnings July 29, with analysts projecting adjusted EPS of $1.43 on revenue of $3.39 billion.

"We're still in the early stage of the infrastructure build out for AI," Executive Chairman Dave Cote said on the company's first-quarter call.

The company guided second-quarter revenue of $3.25 billion to $3.45 billion, representing organic growth of 20 percent to 24 percent. Adjusted earnings are forecast at $1.37 to $1.43 a share, implying year-over-year growth of 44 percent to 51 percent. Vertiv has beaten consensus estimates in each of the past four quarters, delivering an average earnings surprise of 14.65 percent.

The stock has pulled back 8.24 percent over the past month to $290.36, giving buyers a discount to the $376.15 average analyst price target. The July 29 report will test whether AI infrastructure demand can sustain Vertiv's growth trajectory and whether its EMEA business can recover as management has guided for the second half of 2026.

Vertiv's Americas segment, which posted 44 percent organic sales growth in the first quarter, remains the primary growth engine. The region benefits from hyperscaler spending on AI data center infrastructure, with the company's $15 billion backlog providing multi-year revenue visibility. Organic orders rose 252 percent year-over-year in the fourth quarter of 2025, with a book-to-bill ratio of approximately 2.9 times.

The EMEA region presents a contrasting picture. Revenue there fell 20.3 percent year-over-year in the first quarter, though Chief Executive Officer Giordano Albertazzi has said the region is "absolutely part of the AI story" and forecast a recovery in the second half of 2026. Restructuring is already underway.

Vertiv's growth outpaces key competitors. Eaton posted quarterly revenue growth of 16.8 percent with earnings down 9.4 percent, while Vertiv delivered 30.1 percent revenue growth and 135.7 percent earnings growth. Generac grew revenue 12.4 percent. Vertiv trades at a forward price-to-earnings multiple of about 49, a premium that reflects its faster growth rate.

The company raised its full-year adjusted EPS guidance to $6.30 to $6.40 after the first-quarter beat. Free cash flow reached $652.8 million in the first quarter, up 146.81 percent year-over-year, with full-year 2026 guidance of $2.1 billion to $2.3 billion.

The Q2 report will show whether Vertiv can sustain its growth premium as AI infrastructure spending accelerates. Investors will watch for updated EMEA guidance and margin trends when the company reports before the market opens July 29.

This article is for informational purposes only and does not constitute investment advice.