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Vertiv Powers AI: $15B Backlog into 2027
16 Jun
Summary
- Vertiv's $15B backlog ensures revenue visibility into 2027.
- Power and cooling, not just chips, drive datacenter spend.
- Vertiv raised FY2026 EPS guidance to $6.30-$6.40.
Vertiv has secured a substantial $15 billion backlog, representing a 109% year-over-year increase and providing revenue visibility through 2027. This strong order book, with a 2.9x book-to-bill ratio, positions Vertiv as a crucial infrastructure provider for the burgeoning AI sector. The company's focus on power and thermal management is critical, as these components absorb approximately 80% of datacenter expenditures, often overshadowing investment in silicon alone.
Recent financial results highlight Vertiv's impressive growth trajectory. In Q1 2026, the company achieved a 20.8% adjusted operating margin and saw free cash flow surge by 147%. Revenue for the quarter reached $2.65 billion, a 30.1% year-over-year increase. Building on this momentum, Vertiv has raised its FY2026 adjusted EPS guidance to a range of $6.30 to $6.40, indicating significant anticipated growth.
While NVIDIA is widely recognized in the AI space, Vertiv offers a more direct investment in the essential physical infrastructure that enables AI advancements. As the dominant pure-play provider of this infrastructure in the U.S., Vertiv's performance is intrinsically linked to the ongoing AI buildout. The company's robust order pipeline and expanding margins underscore its strategic importance and financial strength.
