AI Stocks
Vertiv Q1: AI Infrastructure Story Is Getting More Profitable
Vertiv’s operating leverage is becoming more evident as AI infrastructure demand grows. Margins stood out this quarter as Vertiv beat its own guidance and raised FY margin metrics across the board. Revenue growth was in line with expectations, yet next quarter was soft. All-in, the company raised full year guidance to make up for next quarter’s miss, which helped to absorb the impact. Under the hood, Vertiv’s sequential inventory growth of 26% QoQ and deferred revenue growth of 35.6% QoQ point toward Vertiv building ahead of a stronger 2H and 2027. On that note, there were many discussions in the Q&A about an incoming strong 2H, although to be balanced, there was additional commentary that deals are “elongated” to 12-18 months.
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