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Vertiv’s Growth Prospects Amid AI Boom
Data center infrastructure company Vertiv (NYSE: VRT) has increased its full-year sales forecast to $10.2 billion following a 67% stock price increase in 2023. The company expects its adjusted operating profit for 2025 to be $2.06 billion, driven by a projected sales growth of $1 billion, which reflects an organic revenue growth rate of 12%-14% from 2024-2029.
Vertiv is a key partner of Nvidia and is set to launch 800V high-voltage direct current (HVDC) solutions in 2027. However, the company’s recent performance has been hindered by tariff-related costs, resulting in an increase in operating profit falling short of expectations, with only a $125 million operational increase from sales guidance adjustments.
Looking ahead, consensus estimates indicate that analysts expect a $2 billion sales increase in 2026, translating to a $638 million rise in operating profit, which represents an incremental increase of about 32%. CFO David Fallon is optimistic that the absence of tariff headwinds will help Vertiv achieve its target of a 25% operating margin by 2029.
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