Fueled by the AI computing arms race, cooling solutions leader Vertiv delivered results that significantly exceeded market expectations. The company reported a staggering 252% surge in organic orders for the quarter, a doubling of its order backlog, and issued an optimistic 2026 performance forecast.

Vertiv recently concluded its Q4 and full-year 2025 earnings call. Management not only disclosed explosive order growth figures but also conveyed a strong, confident message to the market: the super-cycle in data center construction is still in its early stages, and Vertiv is strengthening its market position.

Following the robust earnings report, Vertiv's stock surged nearly 25% in overnight trading.

**Soaring Orders: 252% Year-over-Year Increase, Backlog Reaches $15 Billion** "The momentum is undoubtedly very strong," stated Vertiv CEO Gio Albertazzi during the call. The most exciting data for investors was in the orders: Q4 2025 organic orders grew an astonishing 252% year-over-year and 117% sequentially.

This surge propelled the company's order backlog to $15 billion, more than double the figure from the same period last year. The book-to-bill ratio reached a high of 2.9, indicating nearly $3 in new orders for every $1 of revenue recognized.

Vertiv Executive Chairman Dave Cote set an aggressive tone in his opening remarks, summarizing the company's position: "Vertiv isn't choosing between today and tomorrow. We win now, and we win later... More simply, we're not done yet."

Addressing concerns about potential "front-loading" or abnormal factors behind the massive influx of orders, Gio Albertazzi denied such claims. He emphasized that it reflects market trust in Vertiv's scaled delivery capabilities and noted that orders are getting "larger and larger." He stated, "There are no major anomalies here... Orders are indeed getting bigger. This is essentially customers knowing they need our equipment, systems, and solutions, and knowing when and where they need them."

**2026 Guidance: EPS Forecast to Grow Over 40%, Americas as the "Primary Engine"** Bolstered by its substantial order backlog, Vertiv provided an ambitious financial outlook for 2026. The company expects adjusted diluted earnings per share (EPS) of $6.02, representing a 43% growth at the midpoint. Organic sales growth is projected at 28%, reaching approximately $13.5 billion.

Regionally, the Americas remain the absolute core of growth. The Americas achieved 46% organic growth in 2025, and the guidance assumes sales growth in this region will remain above 30% in 2026.

Regarding the EMEA region (Europe, Middle East, and Africa), although Q4 sales declined by 14%, management sees strong signals of recovery. Gio Albertazzi used a vivid analogy to describe the shifting sentiment in the European market: "We could say the coiled spring is starting to uncoil. Market sentiment has improved significantly, and pipeline growth is accelerating."

**AI and Liquid Cooling: "The Blast Radius is Too Large," CDUs Remain Essential** During the Q&A session, Gio Albertazzi forcefully countered recent market debates about alternative cooling technologies, such as "Rubin racks potentially not needing chillers" or "replacing CDUs (Cooling Distribution Units) with stainless steel coolers." He defended Vertiv's competitive moat in thermal management.

He pointed out that while chip temperature tolerance is improving, heat dissipation remains a critical factor. Furthermore, hybrid cooling (air + liquid) will make the thermal chain more complex, an area where Vertiv excels. Regarding radical proposals to cool chips directly, bypassing CDUs, Gio's response was impactful: "Currently, we haven't seen direct chip cooling through methods other than CDUs... Simply put, because in most cases, it would be too dangerous; the blast radius is a bit too large."

This statement directly addressed market concerns about potential technology disruption, implying that in high-value assets like data centers, safety and reliability (provided by CDUs) are far more critical than extreme cost-cutting.

**Capacity Expansion and Cessation of Quarterly Order Reporting** To handle the surge in demand, Vertiv announced increased capital expenditures (CapEx). CFO Craig Chamberlin stated that CapEx as a percentage of sales would rise from the historical level of 2%-3% to 3%-4% in 2026. Gio Albertazzi added, "We are accelerating capacity expansion... Factories are being expanded, and several new locations are coming online."

Notably, the company announced a significant disclosure change: it will no longer report actual orders, order forecasts, or backlog data in quarterly earnings reports. This information will now be disclosed only in the annual report (10-K).

Gio Albertazzi explained that the "lumpiness" of large orders leads to unnecessary volatility: "This volatility does not represent the company's ongoing performance and is not beneficial for our investors."

While this decision might reduce short-term transparency, it reflects management's desire for the market to focus on long-term delivery capabilities rather than quarterly order fluctuations.