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This Week's Featured Story
Vertiv Earnings Prove the AI Infrastructure Boom Is Intact
By Chris Markoch. Article Published: 2/11/2026.
Key Takeaways
- Vertiv’s quarter featured a slight revenue miss but a clear EPS beat, reinforcing strong AI-driven demand for cooling and power infrastructure in data centers.
- Orders, backlog, and a bullish 2026 outlook remain the core drivers behind the post-earnings surge in VRT shares.
- Technically, the stock looks extended after breaking above key resistance, making pullbacks or consolidations the more favorable entry setups.
If there's an AI bubble, the memo never got to Vertiv (NYSE: VRT) or its customers. The company delivered an earnings report and guidance that show demand for its cooling systems remains strong. That supports the idea that, in this or any market, it pays to buy the best.
Vertiv's headline numbers were mixed versus estimates. Revenue of $2.88 billion came in just under the $2.89 billion forecast but still rose 22.5% year-over-year (YOY). Earnings per share (EPS) of $1.36 beat the $1.29 expected and were up 37% YOY.
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Shares of VRT stock popped 12% in the premarket session, and that momentum carried into the trading day. At midday, the stock was up more than 18% after strong labor data briefly eased broader economic concerns and provided a lift to technology stocks.
Investors hoping for a buy-the-dip opportunity will likely have to wait. With the stock showing signs of being extended, watch VRT closely for any pullback that could be used as a buying opportunity.
An Essential Technology for Data Centers
Vertiv manufactures and services equipment and software that support power availability, thermal management, and IT infrastructure management across a variety of end markets, including data centers.
The company's water-cooled rack systems and related products are critical to meeting the demands of artificial intelligence (AI). AI workloads run 24/7, generating substantial heat, which in turn drives demand for Vertiv's cooling solutions.
That demand showed up in the earnings report:
- Trailing twelve-month (TTM) organic orders growth of approximately 81% YOY.
- Fourth-quarter orders up about 252% YOY and approximately 117% sequentially.
- Book-to-bill ratio of approximately 2.9x.
The recent rally in VRT stock was also driven by institutional enthusiasm around the company's 2026 outlook:
- A backlog of about $15 billion, up roughly $7.8 billion (109% YOY) and up 57% sequentially.
- Robust global orders pipeline growth in Q4 across product technologies and regions, largely fueled by expansion in AI and data-center infrastructure investments.
- Vertiv expects orders to be up in 2026 on a YOY basis.
- Pricing in 2025 exceeded inflation, and the company expects that trend to continue in 2026.
In the immediate aftermath of the report, the Vertiv analyst forecasts on MarketBeat did not show new upgrades or price-target increases. However, the trend has been bullish, with analyst targets generally running ahead of the consensus price target of $187.89.
At $237.46 at the time of writing, the stock is well above not only the consensus target but also the highest analyst targets. It appears analysts were holding back before the report; now sentiment seems likely to shift toward the bullish side — possibly quite aggressively.
How Should Investors Play VRT Stock?
After earnings, VRT stock broke above the roughly $200 level that had acted as resistance, confirming the bullish trend reversal that began in mid-December.
That said, the stock looks extended, increasing the odds of a mean reversion. The recent rally has pushed VRT above its 20-day simple moving average (SMA) and the upper Bollinger Band.
The relative strength index (RSI) is about 76, indicating overbought momentum. Meanwhile, the MACD histogram is expanding, which suggests there may be more impulse buying before any pullback.
Existing VRT shareholders may consider trimming into strength — taking some profits now and waiting for a decisive drop below the 20-day SMA before adding back in.
Prospective buyers should watch for a pullback toward the prior resistance between $195 and $205 as a potential entry. If the stock instead consolidates at these higher levels, that could indicate a new base is forming and justify buying on stabilization rather than waiting for a deeper pullback.
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