Title

Earning Preview: Vertiv Holdings LLC revenue is expected to increase by 33.81%, and institutional views are bullish

Abstract

Vertiv Holdings LLC is scheduled to report results on February 11, 2026 Pre-Market; this preview compiles the latest quarter’s performance and consensus projections for revenue, profitability, and adjusted EPS, alongside recent institutional views and core operating drivers expected to shape near-term share performance.

Market Forecast

For the upcoming quarter, the market expects Vertiv Holdings LLC to deliver revenue of $2.88 billion, up 33.81% year over year, EBIT of $648.81 million, up 48.98% year over year, and adjusted EPS of $1.28, up 56.21% year over year. Forecast margin details have not been explicitly provided; the focus remains on sustained top-line expansion and robust earnings conversion as reflected in the EBIT and EPS outlook.

Within the company’s commercial mix, Products remain the primary revenue engine, while Services contribute a recurring layer of growth and profitability enhancement; both are expected to benefit from ongoing backlog conversion and disciplined pricing. The most promising near-term growth vector is expected to be Products, supported by last quarter’s revenue contribution of $2.21 billion and reinforced by the company-level year-over-year growth of 29.02% that underscores continued demand momentum.

Last Quarter Review

In the prior quarter, Vertiv Holdings LLC reported revenue of $2.68 billion, a gross profit margin of 37.77%, GAAP net profit attributable to the parent company of $398.00 million, a net profit margin of 14.89%, and adjusted EPS of $1.24, representing year-over-year growth of 29.02% in revenue and 63.16% in adjusted EPS.

A key financial highlight was sequential net profit growth of 22.92%, reflecting improved operating leverage and solid conversion of revenue into bottom-line results. In the revenue mix, Products contributed $2.21 billion (82.76% of revenue) and Services contributed $461.40 million (17.24% of revenue), with total company revenue up 29.02% year over year, demonstrating broad-based demand support.

Current Quarter Outlook (with major analytical insights)

Products: Core revenue and earnings driver

Products account for the majority of Vertiv Holdings LLC’s top line and remain the central determinant of quarterly performance. The current forecast for company revenue of $2.88 billion implies healthy volume and pricing conversion, with EBIT of $648.81 million and adjusted EPS of $1.28 highlighting robust incremental margin capture. Given last quarter’s Products revenue of $2.21 billion within total revenue of $2.68 billion, execution around deliveries and backlog conversion remains critical to achieving the projected year-over-year growth of 33.81% at the company level.

Pricing discipline and product mix will be key to maintaining profitability, particularly given last quarter’s gross margin of 37.77%. A repeat of disciplined cost management, favorable mix, and operating efficiencies would support the forecasted upside in EBIT and EPS. Monitoring order linearity and delivery timing through the quarter is important, because any shift in shipment phasing could influence quarterly revenue recognition and short-term margin cadence.

Beyond the headline numbers, Products performance also influences working-capital intensity and cash conversion timing. Higher shipment volumes can temporarily elevate inventories and receivables, which may lag revenue and profit realization. The near-term stock reaction may therefore hinge not only on reported revenue and EPS but also on commentary around backlog quality, lead-time normalization, and the visibility of subsequent-quarter shipments.

Services: Recurring growth and margin ballast

Services contributed $461.40 million last quarter, representing 17.24% of revenue. While smaller than Products in absolute dollars, Services provide recurring revenue streams and a stabilizing effect on blended margin given typically attractive service attach rates and lifecycle support economics. In the quarter ahead, even modest Services growth can amplify margin steadiness because service revenues often carry favorable contribution margins relative to certain hardware deployments.

Key items to watch for Services include renewal rates, attach to recent product installations, and timing of larger service projects. Commentary on contract durations and renewal pricing could signal the durability of the Services mix. Any acceleration in Services tied to prior-period new installations could also foreshadow sustained blended margin resilience into subsequent quarters.

From a short-term perspective, management’s color on service backlog, expansion opportunities within the installed base, and the pace of new service contract wins could provide incremental confidence to forecasts. While the consensus primarily centers on revenue and EPS, an improving Services mix would offer an additional lever for margin consistency through cyclical shipment variability in Products.

Key share-price swing factors this quarter

Bookings and backlog progression will likely serve as the foremost swing factors. Investors will parse any update on order intake, the shape of backlog, and timing of conversion. Given the forecast for revenue to rise 33.81% year over year and for EBIT and EPS to rise 48.98% and 56.21%, respectively, confirmation that backlog supports these targets—and visibility into subsequent-quarter demand—could anchor positive revisions.

Margins are the next focal point. With last quarter’s net profit margin at 14.89% and gross margin at 37.77%, investors will look for signals that pricing, input costs, and mix support EBIT progression in line with the $648.81 million forecast. Any deviation in product cost dynamics or delivery schedules could create short-term variance versus forecasts, making management’s commentary on operational efficiencies, cost containment, and mix crucial for sentiment.

Finally, guidance tone for the next period and the underlying assumptions will influence momentum. Markets appear positioned for continued earnings expansion into the upcoming quarters. Should management provide indications of sustained demand drivers, disciplined pricing, and stable conversion, the setup points to favorable estimate revisions. Conversely, if revenue phasing or cost dynamics suggest a heavier second-half earnings weighting, near-term reaction could be more muted even if the full-year trajectory remains intact.

Analyst Opinions

Recent institutional views are overwhelmingly bullish. Within the last six months, ratings commentary shows a clear majority of Buy or Overweight stances, with no notable bearish calls observed in the same period. Positive views include Morgan Stanley maintaining a Buy rating with a $200.00 price target, Barclays upgrading to Overweight with a $200.00 price target and citing substantial upside potential to forward-year estimates, RBC Capital reiterating a Buy rating with a $196.00 target, and Evercore ISI repeatedly maintaining Buy ratings while raising price targets across $165.00, $180.00, $200.00, and $210.00 as estimates progressed. By count, the ratio skews decisively toward bullish opinions.

The bullish case emphasizes three points. First, consensus forecasts for the upcoming quarter—revenue of $2.88 billion, EBIT of $648.81 million, and EPS of $1.28—suggest durable demand with strong incremental margins. This prospect is consistent with the last quarter’s performance, which featured a 37.77% gross margin and 14.89% net profit margin, indicating healthy profitability dynamics even before the projected acceleration. Second, analysts highlight the setup for positive estimate revisions into future periods if current-quarter delivery execution and operating efficiency persist, with at least one institution suggesting that forward-year earnings could bracket or exceed current consensus if conservative guidance patterns repeat. Third, price targets in the upper $190.00–$210.00 range imply confidence in sustained top-line growth and operating leverage translating to EPS expansion beyond the current quarter.

From a tactical perspective, analysts appear most focused on how management characterizes order visibility, shipment phasing, and margin cadence. A confirmation of steady backlog conversion supporting the forecasted 33.81% year-over-year revenue growth would likely reinforce the bullish consensus. Similarly, commentary around mix, cost management, and pricing power could support the expected 48.98% rise in EBIT and 56.21% rise in adjusted EPS. The presence of multiple Buy ratings with elevated price targets indicates that institutions are looking for consistent execution rather than a step-change in assumptions, which sets a clear framework for judging the report and guidance.

In summary, the majority view anticipates a quarter consistent with robust revenue growth and meaningful earnings expansion, underpinned by the Products-led revenue base and stabilized by Services. The central debate among bulls centers less on whether near-term growth materializes and more on how management frames the trajectory and visibility into upcoming quarters. If the company affirms the durability of demand and sustains margin discipline, the current quarter’s results may serve as a foundation for renewed upward revisions and continued constructive institutional sentiment.