TLDR
- Vertiv reported Q4 EPS of $1.14, missing analyst estimates of $1.30, but organic orders jumped 252% year-over-year.
- The company’s order backlog hit a record $15 billion, enough to keep production busy through 2027.
- Full-year 2026 revenue guidance of $13.25-$13.75 billion crushes Wall Street estimates of $12.39 billion by over $1 billion.
- Vertiv expects 2026 EPS of $5.97-$6.07, beating consensus estimates of $5.33 by more than 12%.
- VRT stock surged 23% following the earnings report as investors focused on future growth rather than the Q4 miss.
Vertiv reported mixed Q4 results Tuesday morning that somehow triggered a 23% stock rally. The data center infrastructure company posted earnings of $1.14 per share, missing analyst expectations of $1.30. Revenue came in at $2.88 billion, just shy of the $2.89 billion consensus.
But investors didn’t care about the miss. They cared about what’s coming next.
The company announced an organic order growth of 252% compared to the prior year. That’s not a typo. Orders more than doubled in three months, pushing Vertiv’s total backlog to $15 billion.
That backlog represents work stretching well into 2027. It’s a clear signal that demand for AI infrastructure isn’t slowing down.
CEO Giordano Albertazzi said the Q4 performance shows Vertiv’s leadership in an increasingly complex data center market. He pointed to robust demand for AI infrastructure as the main driver behind the company’s ability to raise financial targets.
Guidance Crushes Expectations
Vertiv’s 2026 outlook is where things get interesting. The company expects full-year revenue between $13.25 billion and $13.75 billion. Wall Street was expecting $12.39 billion.
That’s a gap of nearly $1.4 billion. It’s rare to see guidance beat estimates by that much.
On the earnings side, Vertiv forecasts EPS of $5.97 to $6.07 for 2026. Analysts had modeled $5.33. Some reports even cited earlier Street estimates around $4.85.
Either way, the company is projecting profits well above what the market anticipated. This suggests pricing power and margin expansion in the AI infrastructure space.
For Q1 2026, Vertiv expects revenue between $2.50 billion and $2.70 billion versus the $2.56 billion consensus. Q1 EPS guidance of $0.95 to $1.01 aligns closely with the $0.96 analyst estimate.
Why Wall Street Is Bullish
Vertiv has now beaten consensus EPS estimates for four straight quarters. It’s also topped revenue estimates in each of those periods. That kind of consistency builds credibility with institutional investors.
The stock has climbed 79% over the past 12 months and is up 23% year-to-date following today’s earnings pop. Analysts maintain a Strong Buy consensus rating with 15 Buy ratings, two Holds, and zero Sells.
The average price target sits at $208.89, which is actually below where the stock traded following the earnings release. That suggests analysts may need to update their models after today’s guidance surprise.
Vertiv saw 17 positive EPS revisions and zero negative revisions in the last 90 days. That upward momentum in analyst estimates typically precedes strong stock performance.
The company’s financial health score is rated as “great performance” according to InvestingPro. Shares closed at $199.62 before today’s surge and are up 16.76% over the past three months.
Vertiv’s Q1 2026 guidance indicates revenue between $2.50 billion and $2.70 billion with EPS of $0.95 to $1.01.
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