Nvidia Partner Surges After Earnings Beat; Expects 'Momentum' To Continue In 2026

Artificial intelligence data center infrastructure play, and Nvidia (NVDA) partner, Vertiv Holdings (VRT) roared higher in stock market trade on Wednesday after reporting better-than-expected fourth-quarter earnings and citing “deep collaborations with semiconductor industry leaders” as a reason for “momentum to continue” in 2026.

Vertiv early Wednesday announced that Q4 EPS grew 37.4% to $1.36 with revenue increasing 22.6% to $2.88 billion. Before the release, analyst consensus expected earnings of $1.29 per share with sales totaling $2.875 billion, according to FactSet.

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Vertiv previously guided for between $2.81-$2.89 billion in revenue with earnings of $1.23 to $1.29 per share for the fourth quarter.

Vertiv also announced Wednesday that at the end of Q4 its backlog increased to $15 billion, up 109% compared to a year ago and a hefty gain from its $9.5 billion backlog at the end of Q3.

For 2026, Vertiv forecasts net sales of $13.250 to $13.750 billion, with organic sales growth of 27% to 29% compared to 2025. The company also predicts adjusted diluted earnings of $5.97 to $6.07 per share, an increase of about 43% at the midpoint compared to 2025. Analysts see Vertiv profit in 2026 coming in at $5.33 per share on $12.45 billion in revenue, according to FactSet.

“Our fourth-quarter performance demonstrates Vertiv’s leadership position in an increasingly complex and demanding data center market,” CEO Giordano Albertazzi said in the earnings release Wednesday.

“Deep collaborations with semiconductor industry leaders, combined with our decades-long industry expertise and technology-rich portfolio, enable us to optimize customer outcomes by anticipating needs before they become apparent,” Albertazzi continued. “As we look to 2026, we expect this momentum to continue. Our record backlog provides clear visibility into what we expect to be another year of significant growth.”

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Vertiv Stock Takes Off

Vertiv stock soared 24.5% to 248.51 in regular stock market action on Wednesday, gapping back above a 200.40 handle buy point from a double bottom base.

However, in stock market trade on Thursday, VRT advanced as high as 255.54 before falling 4.8% to 236.51. Shares then on Friday fell 0.8% to 234.53.

The AI data center play ended Friday up 20% for the week, part of a 44.8% gain on the year. Vertiv stock advanced 42.6% in the 2025 stock market, MarketSurge chart.

Following earnings, Evercore ISI raised its VRT price target to 280 from 210 and kept an outperform rating on the shares. The analysts wrote that Vertiv is structurally positioned for sustained growth as one of the few providers capable of delivering end-to-end prefabricated data center solutions at scale.

Meanwhile, Morgan Stanley analyst Christopher Snyder on Wednesday wrote that Vertiv is currently “clearly winning” in the data center thermal and power market. Snyder added that “what matters for the equity is that the company will continue to win in the coming years and we remain constructive.”

The 52 stocks in the IBD-tracked Electrical-Power/Equipment industry group have collectively gained 29.6% in 2026. That ranks the group 11th out of the 197 industries ranked by IBD.

Investors can also keep tabs on the Leaderboard, the IBD 50 list of top growth stocks and IBD SwingTrader along with the IBD Sector Leaders list.

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Vertiv’s Business And Nvidia Connection

The Columbus, Ohio-based Vertiv has a strong backlog, steady earnings and sales growth.

Vertiv sells liquid-cooling heat management products as well as uninterrupted power supply systems and server racks for data centers. The AI infrastructure play also provides services for communication network applications while supporting health care, finance, manufacturing and other industries for AI, automation and robotics purposes.

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In October 2025, the company said it’s collaborating with Nvidia, building on their partnership announced in 2024. Vertiv plans to release its 800 volt DC (VDC) power portfolio in the second half of 2026 to support the rollout of Nvidia’s Vera Rubin Ultra Kyber AI platform in 2027. The platform will feature Nvidia’s next-gen Rubin Ultra GPUs, a high-density liquid-cooled Kyber rack and advanced 800 volt DC power.

Data centers are moving to 800 volt DC power and away from 415 to 480 volt AC power, according to Nvidia’s blog.

Vertiv has delivered steady earnings and sales growth over the past eight quarters. During the third quarter, earnings of $1.24 per share grew 63% with sales rising 29% to $2.7 billion.

Best IBD 50 Stocks To Watch

Vertiv stock has a perfect 99 Composite Rating along with a 96 Relative Strength Rating and a 98 EPS Rating.

Please follow Kit Norton on X @KitNorton for more coverage.

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