By Mackenzie Tatananni

Shares of Vertiv Holdings, the maker of cooling equipment for data centers, surged on Wednesday after the company posted strong first-quarter earnings and raised its full-year sales guidance.

Adjusted earnings of 64 cents a share topped the 61 cents a share Wall Street was looking for, according to FactSet. Sales grew 24% from the prior year to $2.04 billion, above the $1.94 billion analysts had forecast.

Vertiv raised its 2025 net sales guidance by $250 million at the midpoint, citing robust momentum and strong AI-driven demand. The company said it now expects sales between $9.325 billion and $9.575 billion, compared with an earlier range of $9.125 billion to $9.275 billion.

"The tariff situation remains fluid, but we are proactively working to mitigate the impact with supply chain countermeasures, production flexibility and commercial actions," Vertiv said.

Shares spiked 13% to $80.89, as the benchmark S&P 500 and tech-heavy Nasdaq Composite rose 3% and 3.8%, respectively.

Vertiv's comments on the AI trade were supported elsewhere, as Amphenol, which makes connectors, cables, and other systems for use in power plants, jumped 12% on its own earnings beat, while shares of Nvidia, the mother of all AI stocks, had gained 4.6%.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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April 23, 2025 10:24 ET (14:24 GMT)

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