The company has provided an optimistic financial outlook for fiscal year 2025, forecasting revenue in the range of $9.33 billion to $9.58 billion. This exceeds market expectations, which projected $9.18 billion.
For FY25, the adjusted operating margin is anticipated to be between 19.75% and 21.25%. Additionally, the company estimates its adjusted free cash flow will fall within $1.25 billion to $1.35 billion.
The driving force behind this positive forecast is the vigorous momentum observed in the data center market, largely fueled by a growing demand for AI solutions. To meet industry needs, the company is steadily investing in engineering, research and development (ER&D), and expanding its capacity, especially focusing on AI infrastructure deployments.
While the tariff situation remains uncertain, efforts are being made to alleviate potential impacts through supply chain strategies, flexible production, and commercial measures. The guidance accounts for the existing tariff rates as of April 22, 2025, under the assumption they will persist throughout the year, and considers the possible outcomes based on current data and planned mitigating actions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 20 analysts, the average target price for Vertiv Holdings Co (VRT, Financial) is $116.12 with a high estimate of $146.00 and a low estimate of $75.00. The average target implies an upside of 61.68% from the current price of $71.82. More detailed estimate data can be found on the Vertiv Holdings Co (VRT) Forecast page.
Based on the consensus recommendation from 24 brokerage firms, Vertiv Holdings Co's (VRT, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Vertiv Holdings Co (VRT, Financial) in one year is $53.77, suggesting a downside of 25.13% from the current price of $71.82. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Vertiv Holdings Co (VRT) Summary page.
