Why Should Vertiv Stock Holders Keep Watching This Number?
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Vertiv (VRT), which sells power and cooling equipment to data centers, grew its sales 61.2% from a year earlier in its fiscal third quarter, the three months ended September 30, 2026. That growth rate is the number a holder should watch, because it is likely what buyers are paying for, and management has said it does not disclose orders and will not share orders data going forward.
Where Is Vertiv’s Sales Growth Coming From?
Most of it came from the business Vertiv already owned. Organic sales, which leave out acquisitions and currency moves, grew about 55%, and acquisitions added another 6%. The Americas did the most: sales there were about $3 billion in the quarter, up 75% from a year earlier.
Management said this growth reflects the fuller use of new factory capacity and the steady delivery of its backlog, which consists of orders booked but not yet shipped. Vertiv continues to add that capacity and expects to double its chiller production capacity by the end of 2026. However, some of the latest results spilled over from the prior period. Management said $100 million to $150 million of sales delayed from the second quarter landed in the third.
Vertiv Is Growing Far Above Its Own Past
The latest quarter expanded at roughly twice the pace of the same quarter of 2025, when Vertiv’s sales grew 29.0%. Over the last three twelve-month periods, the company’s sales grew an average of 25.7% a year, compared with 6.5% for the S&P 500.
Growing this fast also ties up cash. In the third quarter, Vertiv’s free cash flow was $652 million, below its net income of $765 million, while in each of the four quarters before it free cash flow was higher than net income. Management said free cash flow still rose from a year earlier, but money tied up in operations and higher capital spending held it back.
What Does Vertiv’s Price Assume About That Growth?
Vertiv trades at 38.5 times its earnings over the last twelve months, compared with 21.9 for the S&P 500, so the price likely assumes the company’s growth will stay far above the market’s pace for years. The stock has already retreated, falling 28.6% from August 14 to November 12, 2026, while the S&P 500 lost 2.2%.
The volume of work waiting to be completed offers the best case against worrying. Management said third-quarter orders were more than 100% higher than a year earlier on an organic basis, and noted that customers place orders about 12 to 18 months ahead. The company also raised its 2026 sales forecast to a midpoint of $14.7 billion,which sits $650 million above its earlier guidance.
A holder should be watchful rather than alarmed. Vertiv is delivering real growth backed by orders, but the pace is running far above the company’s own past. Moreover, management has said it will not share orders data going forward, so holders may not get another look at how orders are running. Vertiv is expected to report its fourth quarter in February 2027, and its sales growth in that quarter is the number to watch.
Does This Mean You Should Act On VRT?
Betting on a single stock is always risky, whichever way you lean. The Trefis High Quality (HQ) Portfolio holds 30 quality companies in equal weight and has returned 105% since its September 2020 launch.
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