Vertiv Q3 Preview: AI Infrastructure Keeps Growth on Track
Vertiv Holdings (VRT) reports third-quarter 2025 results before the opening bell on October 22. The Street expects EPS of $0.98 and revenue around $2.6 billion, both solid year-over-year gains as AI and hyperscale data centers keep driving demand.
The stock is up more than 50% YTD and over 200% since April's lows, signaling confidence in Vertiv's role across electrical and thermal systems for next-gen compute. The key product story: liquid-cooling, now essential for high-density AI racks, with management scaling production to meet it.
The July quarter beat on sales and margins, prompting several analyst upgrades. This week, the focus shifts to backlog durability, pricing, and how tariffs could affect gross and operating lines.
What managers should watch on the call
- Backlog quality: conversions, cancellations, and lead times by region and product.
- Margin trajectory: management previously pointed to ~20% operating margin for Q3-does that hold or expand?
- Tariffs and input costs: pass-through effectiveness, timing lags, and any redesigns to mitigate.
- Capacity and delivery: liquid-cooling output, supply availability, and on-site deployment bottlenecks.
- Hyperscaler capex outlook for 2025-2026: visibility by customer cohort and geography.
Why margins matter now
Last quarter's improvement came from pricing discipline and volume scale. If Q3 reaches or tops ~20% operating margin, it reinforces that AI demand is translating into earnings leverage.
Watch mix. Liquid-cooling, services, and software can lift profitability, while tariffs and expedited logistics can pull it down. Expect commentary on where pricing stands as lead times normalize.
Execution risks
- Tariff-driven cost creep that outpaces pricing actions.
- Component or installation constraints that delay site go-lives.
- Order timing risk if hyperscalers stagger build schedules into 2026.
Signals of upside
- Accelerating liquid-cooling wins with faster cycle times and better services attachment.
- Backlog growth with higher-margin mix and improved cash conversion.
- Clear line of sight into 2025-2026 hyperscaler programs.
For leaders planning AI capacity, the essentials are straightforward: scalable electrical distribution, cooling built for high rack densities, and partners who can execute without delays. Vertiv's update will show how close they are to that bar.
For live materials and slides, see Vertiv investor relations. Building team capability around AI initiatives? Explore Complete AI Training - courses by job.
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