Vertiv (VRT)
The desk's stance
On our research list, not on the slate.
What the company does
Power management and liquid cooling for AI datacenters — every rack of GPUs needs Vertiv-class gear wrapped around it.
In short: Data center power and cooling. Category: AI Data Center Infrastructure. Sector: Industrials, Electrical Equipment & Parts.
G-Street Value and Score
G-Street Value: $277.21, computed Oct 18, 2026 (confidence: medium).
How we got there: 70% analyst leg $303.33 (3 analyst targets, credibility- and freshness-weighted, after 8% optimism discount) + 30% GainStreet factor value $216.27 (23.52× fwd EPS anchored to industrials multiples). 1 analyst target has no linked source and is shown but not counted.
G-Street Score: 70 out of 100 (Medium).
- Top-line growth & guidance: 22 of 32
- Margin power: 7 of 15
- Revenue visibility & quality: 9 of 11
- Profitability & balance sheet: 22 of 24
- Capital allocation & governance: 5 of 6
- Valuation, sentiment & momentum: 5 of 12
Our current thesis
Updated Oct 15, 2026
The thesis
- Critical pure-play supplier of high-density thermal management and power delivery for AI racks.
- Massive $15B backlog and accelerating hyperscaler orders provide multi-year revenue visibility.
- Trades at a more attractive forward multiple than peer GEV despite faster growth.
Risks
- High 2.05 beta amplifies severe price drawdowns during tech valuation contractions.
- Steep second-half revenue targets create heightened operational execution and delivery risk.
- Free cash flow conversion relies heavily on customer deposits and advance billings.
What we're watching
- Q3 2026 earnings report on October 28, targeting $3.76B in revenue.
- Order intake and backlog preservation against emerging liquid-cooling competition.
- Technical support stabilizing near the $220 level after recent 41% peak drawdown.
Latest
Vertiv trades at $222.83 (24.2x forward P/E), down 41% from its 52-week peak of $379.94 amid broader high-beta tech retrenchment. Fundamentals remain robust as Q2 2026 revenue rebounded 23.6% sequentially to $3.27B with net income reaching $497.8M, supported by a $15B order backlog. Ahead of Q3 2026 earnings on October 28, consensus expects $3.76B in revenue, demanding steep second-half delivery execution.
Key numbers
As of Oct 16, 2026: market cap $79.5B · revenue growth +24.1% year over year · gross margin 38.0% · net margin 15.1% · forward P/E 22.5 · next earnings Oct 28, 2026.
Analyst price targets
Published analyst targets we could trace to a named source.
- Wells Fargo, Overweight: $340 target (September 2026). Source: tipranks.com
- KeyBanc, Overweight: $325 target (July 2026). Source: marketscreener.com
- Goldman Sachs, Buy: $301 target (July 2026). Source: marketscreener.com
On the Gainz Lab maps
Who it does business with
- Vertiv supplies Alphabet (Google) — Cooling & power infra (about $3.0B a year). Vertiv’s liquid cooling and power management wrap around AI racks.
In the Daily Brief
Named in 2 editions on 2 days.
- May 19, 2026: Trump called off the airstrike, AI infrastructure caught a heavy downgrade, and tomorrow's Nvidia print is the only thing standing between us and a reality check
- May 18, 2026: Data center darlings took a sharp haircut, ServiceNow quietly stole the show, and we're all just killing time until Wednesday's Nvidia print decides our fate