Vertiv Stock Surged 80%, Here’s Why
Vertiv (VRT)’s stock leapt 78%, fueled by soaring revenues and margins—even as its P/E multiple slipped—sparked by back-to-back earnings beats, an upgraded outlook, a dividend boost, and a game-changing Caterpillar partnership. Let’s dive into the moves behind this momentum.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 2222025 | 11192025 | Change | |
|---|---|---|---|
| Stock Price ($) | 95.9 | 170.7 | 78.0% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 8,011.8 | 9,696.3 | 21.0% |
| Net Income Margin (%) | 6.2% | 10.7% | 72.4% |
| P/E Multiple | 72.8 | 63.0 | -13.5% |
| Shares Outstanding (Mil) | 376.6 | 382.0 | -1.4% |
| Cumulative Contribution | 77.9% |
So what is happening here? The stock surged 78%, driven by a 21% revenue lift and a 72% boost in margins, despite a 13% dip in the P/E multiple. Now, let’s explore the key moves behind these shifts.
Here Is Why Vertiv Stock Moved
- Q1 2025 Earnings Beat: Q1 2025 adjusted EPS of $0.64 beat forecasts, revenue exceeded. Stock rose 10.64%.
- Q3 2025 Earnings Beat: Q3 2025 EPS of $1.24 beat estimates, revenue up 29%. Organic orders surged 60%.
- Raised 2025 Guidance: Following strong Q3 results, Vertiv raised its full-year 2025 financial guidance.
- Dividend Increase: Increased annual dividend by 67% to $0.25/share, reflecting strong financials. Stock jumped.
- Caterpillar Partnership: Partnered with Caterpillar on energy optimization solutions for AI data centers.
Our Current Assesment Of VRT Stock
Opinion: We currently find VRT stock relatively expensive. Why so? Have a look at the full story. Read Buy or Sell VRT Stock to see what drives our current opinion.
Risk: A good way to gauge risk with VRT is to check how far it’s fallen in past market meltdowns. It lost about 3.4% during the 2018 correction, but the Covid pandemic saw a much steeper drop of 58.6%. The worst was the inflation shock, where the stock dived over 71%. Even with solid fundamentals, VRT isn’t immune when things get rough. These dips show that no matter how favorable the outlook, the downside can be sharp in a crisis.
VRT stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.