Latest news with #Vertiv
Forbes
10 hours ago
- Business
- Forbes
Vertiv Stock Up 27%. Google, Meta, Microsoft AI Spend To Drive Growth
Vertiv stock is up 27% this year after posting second quarter that beat and raising the company's forecast, according to Investor's Business Daily. A big reason for the company's success is the ever rising capital expenditures of companies like Alphabet, Amazon, Meta, and Microsoft, reported the Wall Street Journal. Vertiv supplies hyperscalers hardware and services to power and cool the data centers where chatbot providers like OpenAI train and operate their AI models, according to my book Brain Rush. While Vertiv also supplies such infrastructure to other customer groups – such as communication networks and commercial and industrial facilities – AI is the source of the fastest growth, according to my July 30 interview with Vertiv CEO Gio Albertazzi. Vertiv's future prospects look bright for two reasons: To be fair, Vertiv shares could have limited upside. How so? A survey of 15 Wall Street analysts reveals an average 12 month price target of $144 – making the stock 4% overvalued, according to TipRanks. Vertiv's Performance And Prospects Vertiv's second quarter results exceeded investor expectations and the company raised its full year outlook, according to IBD. Here are the key numbers: "Vertiv's second-quarter performance demonstrates the strength of our market position and our ability to execute at scale," Albertazzi said in a news release. 'Our 35% sales growth and robust orders momentum reflect both strong market demand and our expanded capabilities to serve our customers' increasingly complex infrastructure needs.' Vertiv's Growth Tailwinds Vertiv's 35% sales growth is more than three times faster the industry's expected rate of expansion. The company's competitive advantages suggest the company to win market share. How so? Vertiv's total addressable market – providing hardware and services for data centers, communications, and commercial and industrial customers – amounts to $60 billion and is growing at a 9% to 11% annual rate, according to Albertazzi. The data center segment – featuring hyperscalers (such as AWS and Microsoft's Azure cloud), neo cloud providers (such as CoreWeave), and data center companies like Equinix – is growing at a 15% to 17% annual rate, he added. Before July 30, when they reported expectations-beating quarterly growth, both Meta and Microsoft 'were already on track to spend more than 30% of this year's revenue on capital expenditures, compared with about 15% to 20% historically,' the Journal reported. Meta and Microsoft seem to have different plans for spending. In pursuit of 'superintelligence', Meta CEO Mark Zuckerberg is making a 'massive investment,' noted the Journal. that will take years to ultimately come to fruition. He expects it will take years for the investment to pay off. 'We do take very seriously that this is just a massive amount of capital to convert into many gigawatts of compute, which we think is going to help us produce leading research and quality products and in running the business,' Zuckerberg said on Meta's earnings call. For its part, Microsoft projected record capital expenditures of $30 billion for the current quarter although the software giant envisions slower spending growth in the year ending June 2026 than in 2025, according to the Journal. Vertiv sees such hyperscaler capital expenditure growth for AI as sustainable. 'By investing in more capacity – which gives hyperscalers an advantage – they are implicitly confirming their expectations for monetization,' Albertazzi told me. Vertiv is using AI to grow revenue faster than fixed costs. How so? The company's AI applications include configuring its supply chain, executing tariff countermeasures, improving the company's overall efficiency, and speed and providing long-term value to customers, he explained. Vertiv provides a range of hardware and services. Roughly a third of the company's revenue comes from cooling technology – such as liquid cooling systems about which I wrote in Brain Rush; a third from power management technology; and 22% from services to speed data center deployment, according to Albertazzi. Vertiv wins because of its role as an industry thought leader – which enables the company to create the future. 'We are part of an industry ecosystem including silicon providers like Nvidia and hyperscalers," he said. "Our engineers work with their engineers to design data centers for the future. We also respond to requests for proposal and request for quotations. There are transactions but also collaboration. We are in the fabric, in the loop. We have a track record throughout the life cycle.' Vertiv's Sources Of Future Growth Vertiv expects strong growth as evidenced by the following metrics from the company's Q2 2025 investor presentation: Vertiv sees many new growth vectors as customers deploy new technologies. 'Growth will come from cooling, power management, white spaces within IT, and digitization of predictive maintenance,' Albertazzi explained. 'Demand for liquid cooling is in its infancy. There is growing demand for data center access to power that is grid independent. We are collaboration with Oklo to deploy small nuclear reactors – which take much less time to deply than traditional nuclear plants. We will provide hardware to meet the power requirements of new graphics processing units such as Nvidia's Rubin. And we will help design and build data centers using prefabrication to reduce deployment time,' he added. As Nvidia and rivals introduce new GPUs, their computational power and energy consumption rise. 'A rack with the latest AI chips requires the same power as 10 to 15 racks at a conventional site,' according to the Financial Times. Wall Street analysts saw Vertiv's stock as overvalued, noted my January 2025 post on Forbes. Yet it has continued to rise. Satisfying the ever increasing power and cooling needs of AI data centers may continue to send Vertiv's stock ahead of investor expectations.
Yahoo
14 hours ago
- Business
- Yahoo
Nuclear specialist Oklo inks data center partnerships
This story was originally published on Facilities Dive. To receive daily news and insights, subscribe to our free daily Facilities Dive newsletter. Dive Brief: Oklo announced two partnerships last week to bring its vision of efficient, nuclear-powered data centers closer to fruition. It plans to co-develop advanced power and thermal management solutions with Vertiv, a provider of data center cooling systems and other digital infrastructure, and deploy Liberty Energy's natural gas generators and electric load management platform to power Oklo's future data center customers as federal regulators consider its advanced reactor design. In press statements last week, executives from the three companies said the partnerships would future-proof the next generation of high-powered computing facilities, allowing them to run more efficiently and flexibly with less impact on local grids. Dive Insight: Data center developers are facing fierce local opposition in many parts of the United States. Data center proposals worth at least $64 billion have been blocked or delayed by community opposition, according to the activist group Data Center Watch. Opponents direct much of their ire to the impacts of onsite power generation and cooling systems on local environments and infrastructure. Onsite gas or diesel generators — which run around the clock to provide 'prime power' at some facilities as their owners await a grid connection — are noisy and contribute to air pollution. Power demand from grid-connected data centers may fluctuate wildly in a matter of minutes, causing potentially costly power quality issues for nearby customers and the facilities themselves. Larger data centers' cooling systems can consume millions of gallons of water per day, which is one reason why the latest AI data center designs lean on closed water or non-water refrigerant loops for cooling. Vertiv offers power management solutions to make 'data centers good citizens on the grid,' said Martin Olsen, the company's senior vice president of products and solutions. These solutions include uninterruptible power supply systems and larger batteries that help smooth out voltage fluctuations. Vertiv's partnership with Oklo could boost the efficiency of high-density computing facilities more broadly, Olsen said. The companies say they will work together to 'produce end-to-end reference designs' for heat recovery and cooling systems in data centers powered by Oklo's small nuclear reactors, each of which generates 5% to 10% as much energy as one of the larger reactors connected to the U.S. grid today. Those designs will closely integrate Vertiv's thermal management technology with onsite power generation, allowing facilities to recover and use heat that would otherwise go to waste, Olsen said. 'In a nuclear power plant, about a third of the energy produces electricity and the rest is heat … normally, you dissipate that,' he said. Vertiv's thermal management system would recapture much of that heat and use it to run absorption chillers tied to facilities' liquid and air cooling systems. That could significantly reduce those systems' power consumption and cut 'stranded capacity' — the power and mechanical capacity that would otherwise be needed to cool facilities at periods of peak demand — by 10% to 20%, Olsen said. Data centers could simply bank the energy savings and use less power overall, but it's more likely they'd run more GPUs instead, Olsen added. It may be several years before a data center customer has the opportunity. The companies plan to demonstrate the co-designed power and thermal management solution with Oklo's first reactor deployment at Idaho National Laboratory. Oklo executives say that reactor could power up in late 2027 or early 2028. They have not said whether it would be colocated with a data center or other power offtaker, though the Trump administration last week identified Idaho National Laboratory as one of four U.S. Department of Energy sites it wants to host 'cutting edge data center and power generation projects.' In the meantime, Oklo's collaboration with Liberty Energy and a previously announced partnership with RPower would deliver 'bridge power' to future data center customers eager to power up before the U.S. Nuclear Regulatory Commission approves its reactor design. Both companies make small, flexible gas-fired generators that can run continuously to provide primary power to off-grid facilities or back up a grid connection and other onsite power sources as needed. The Oklo-Liberty announcement suggested Oklo's reactors would relegate the gas generators to a backup role over time. But, as part of the partnership, Liberty said it would provide load management solutions that enable 'flexible energy services' in the short term and 'future grid management services focused on optimization and resiliency.' 'This collaboration gives large-scale power users a turnkey alternative that integrates generation, backup, grid interaction, and optimization, all through a single provider,' Oklo cofounder and CEO Jacob DeWitte said in a statement. Recommended Reading Data centers seek flexible power solutions for resilience, sustainability Sign in to access your portfolio
Globe and Mail
21 hours ago
- Business
- Globe and Mail
Vertiv (VRT) Q2 Revenue Jumps 35%
Key Points Vertiv (NYSE:VRT) delivered record GAAP revenue of $2,638 million in Q2 2025, up 35.1 % year over year and beat expectations by 12.1% (GAAP). Adjusted earnings per share rose 42% year-over-year in Q2 2025 to $0.95, outpacing analyst estimates by $0.12 (non-GAAP). Strong orders growth and a record $8.5 billion backlog as of Q2 2025 supported a raised full-year outlook, despite temporary margin pressure from tariffs and supply chain costs. These 10 stocks could mint the next wave of millionaires › Vertiv (NYSE:VRT), a global supplier of critical digital infrastructure and services for data centers and communication networks, released its second quarter results on July 30, 2025. The release detailed record GAAP revenue gains and a significant beat on non-GAAP earnings expectations. Revenue (GAAP) reached $2,638 million, compared to the analyst consensus of $2,353.9 million. Adjusted diluted earnings per share were $0.95, outpacing the $0.83 consensus. This performance was driven by surging demand for data center solutions, particularly in the Americas and Asia Pacific regions. Despite impressive sales and profit growth, higher supply chain and tariff-related costs pressured adjusted operating margins. Overall, the quarter showcased Vertiv's strong market traction and its ability to capitalize on accelerating trends in the digital infrastructure space. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (Non-GAAP) $0.95 $0.83 $0.67 41.8 % Revenue (GAAP) $2,638 million $2,353.9 million $1,952.8 million 35.1 % Adjusted Operating Profit $489.3 million $381.8 million 28.1 % Adjusted Operating Margin 18.5 % 19.6 % (1.1) pp Adjusted Free Cash Flow $277 million $336.5 million (17.7 %) Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. About Vertiv: Business Model and Strategic Focus Vertiv provides foundational technologies for digital infrastructure. Its portfolio includes power management products, thermal management systems, racks, enclosures, and remote monitoring solutions. These products are essential for data centers, communication networks, and key industrial applications where uptime and performance are critical. The company's recent strategic focus includes expanding its product innovation—especially in areas needed for artificial intelligence (AI) and cloud deployments—while investing in its global supply chain and manufacturing footprint. By strengthening relationships with large data center operators and technology leaders, Vertiv positions itself as a go-to partner for reliable infrastructure. Its ability to deliver on a growing backlog and execute on large-scale projects is considered central to its continued success. Quarterly Highlights: Performance Drivers and Key Metrics The period saw Vertiv exceed revenue and earnings expectations, reflecting exceptional demand for its digital infrastructure solutions. Organic orders expanded by roughly 15 % compared to the prior year, and the company's backlog surged to a record $8.5 billion as of Q2 2025—supported by a book-to-bill ratio of approximately 1.2x. Backlog and order strength signal continued future revenue and underline growing industry reliance on Vertiv as the market for data centers rapidly evolves. By region, the Americas segment led growth with net sales up 42.9% (GAAP), buoyed by robust North American data center investment. Adjusted operating profit in this region increased by 34.9% compared to Q2 2024. Services & spares in the Americas were up 22.9% year-over-year for the three months ended June 30, 2025. However, additional costs from tariffs and supply chain reconfiguration led to some margin compression—adjusted operating margin in the Americas fell by 1.4 percentage points compared to Q2 2024. The Asia Pacific segment also posted substantial gains. Net sales increased 35.1% year-over-year. Adjusted operating profit in Asia Pacific jumped 83.3%, and adjusted operating margin improved by 2.7 percentage points year over year. While service revenue growth trailed that of product sales, both areas contributed positively. In Europe, Middle East, and Africa (EMEA), net sales grew 12.5%. Management noted that EMEA pipelines remain robust and are growing. Innovation, Operations, and Material Events Product innovation remains a mainstay of Vertiv's strategy, underlined by high R&D investment and recent collaboration announcements. The company continued to invest in engineering and research for its next-generation AI-optimized infrastructure. Its cooling systems, modular power solutions, and integrated white-space products are designed for demanding applications in hyperscale and AI-driven data centers. Vertiv also announced plans to acquire Great Lakes Data Racks & Cabinets, extending its portfolio in high-density racks and enclosures. This acquisition was not reflected in the current quarter's guidance and results. Though order momentum was strong, the quarter was not without headwinds. Tariff-related expenses and the cost of rapidly shifting the company's manufacturing footprint to mitigate those tariffs weighed on margins. Management called these pressures temporary, and reiterated a plan including commercial pricing actions and supply chain reconfiguration. According to company leaders, these countermeasures should reduce the impact of tariffs toward the end of the year, but margin pressure persisted for the quarter. On the cash flow front, adjusted free cash flow was $277 million—down 17.7% from the prior year quarter—largely due to working capital investments to support growth. Operating cash flow (GAAP) also declined versus a very strong prior year period. Still, on a year-to-date basis, adjusted free cash flow had increased 24%. The company also did not repurchase shares, choosing instead to retain financial flexibility for future acquisitions and to maintain a conservative balance sheet. Looking Ahead: Guidance and Key Watch Areas Vertiv raised its financial outlook for FY2025 across most major non-GAAP metrics. For the full year 2025, the company now expects net sales between $9.93 billion and $10.08 billion, organic growth of 23 % to 25 %, adjusted operating profit (non-GAAP) of $1.95 billion to $2.03 billion, and adjusted earnings per share of $3.75 to $3.85. Guidance for adjusted free cash flow (non-GAAP) is $1.375 billion to $1.425 billion. However, management revised its margin outlook downward, with adjusted operating margin (non-GAAP) now forecast between 19.7% and 20.3%, a decrease from earlier targets. For Q3 2025, projections include net sales of $2,510 million to $2,590 million, 20 % to 24 % organic growth, and adjusted EPS between $0.94 and $1.00. Management cautioned that these expectations do not factor in any impacts from proposed tariffs that may take effect after July 28, 2025, as regulatory clarity on additional trade policies is still pending. Vertiv's large backlog, ongoing tariff mitigation, and continued investment in manufacturing and product development will be central areas for investors to watch in the coming quarters. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,039%* — a market-crushing outperformance compared to 182% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 29, 2025
Yahoo
a day ago
- Business
- Yahoo
Vertiv Holdings Co. (VRT) Q2 Earnings and Revenues Surpass Estimates
Vertiv Holdings Co. (VRT) came out with quarterly earnings of $0.95 per share, beating the Zacks Consensus Estimate of $0.83 per share. This compares to earnings of $0.67 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +14.46%. A quarter ago, it was expected that this company would post earnings of $0.62 per share when it actually produced earnings of $0.64, delivering a surprise of +3.23%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Vertiv, which belongs to the Zacks Computers - IT Services industry, posted revenues of $2.64 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 11.86%. This compares to year-ago revenues of $1.95 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Vertiv shares have added about 25.6% since the beginning of the year versus the S&P 500's gain of 8.3%. What's Next for Vertiv? While Vertiv has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Vertiv was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.96 on $2.44 billion in revenues for the coming quarter and $3.57 on $9.52 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Grid Dynamics (GDYN), is yet to report results for the quarter ended June 2025. The results are expected to be released on July 31. This company is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of +25%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Grid Dynamics' revenues are expected to be $100.39 million, up 20.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report Grid Dynamics Holdings, Inc. (GDYN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
a day ago
- Business
- Yahoo
Oklo (OKLO) Completes NRC Pre-Application Assessment For Aurora Powerhouses
Oklo experienced a remarkable 199% increase in its total shareholder returns over the last quarter, coinciding with several noteworthy developments. The company's strategic alliance with Liberty Energy and collaboration with Vertiv have reinforced its commitment to providing advanced nuclear power solutions across high-demand sectors such as data centers. Additionally, the completion of the NRC pre-application assessment marked a significant milestone for its Aurora powerhouses. The company's inclusion in multiple Russell indexes signaled growing market recognition. Amid positive market sentiment around corporate earnings and economic growth, these developments likely added weight to Oklo's impressive quarter performance. We've spotted 5 risks for Oklo you should be aware of, and 1 of them is potentially serious. We've found 17 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Oklo's shares have risen a very large 701.47% over the last year, setting a remarkable benchmark in comparison to the broader US market's 17.5% return, as well as the 15.5% return of the US Electric Utilities industry. This steep increase reflects growing investor confidence in the company's capacity to innovate within the nuclear energy domain, even though Oklo has yet to generate any revenue. Despite these gains, the current share price of $71.01 surpasses the consensus analyst price target of $62.53, suggesting that market optimism might be ahead of perceived fair value. The developments Oklo has undertaken, like forming alliances with Liberty Energy and Vertiv, are crucial steps in expanding its market footprint, yet are not expected to immediately reflect in revenue or earnings as the company remains forecast to be unprofitable for the next three years. The strategic collaborations and pre-application assessment completion may enhance Oklo's long-term prospects, possibly influencing revenue and earnings forecasts positively. Investors have responded favorably to these potential future enhancements, evidenced by robust share price growth despite an ongoing net loss of $59.40 million reported for 2025. Shareholders should consider the discrepancy between the current share price and price target in the context of Oklo's high Price-To-Book Ratio, indicating caution in valuation. Assess Oklo's future earnings estimates with our detailed growth reports. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include OKLO. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
