Vertiv CEO: There are ‘2 aspects’ to the company’s major growth

Yahoo Finance Video 及 Josh Lipton

Thu, February 12, 2026 at 7:19 AM GMT+9

In this video:

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  VRT

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Vertiv (VRT) stock is skyrocketing after the company beat earnings estimates and issued upbeat guidance.

Vertiv CEO Giordano Albertazzi sits down with Market Domination Overtime host Josh Lipton to discuss the company’s quarter and his expectations for the year ahead.

To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime.

Video Transcript

00:00 Speaker A

Geo, it is great to see you as always.

00:02 Speaker A

Let let’s dig into these results, uh, Geo, because investors were impressed, analysts were impressed. They were pointing to what they called staggering order growth.

00:13 Speaker A

That’s how they put it, Geo, staggering at more than 250%.

00:19 Speaker A

Maybe start there, Geo. I mean, who who are these customers? Why are they ordering so much more, Geo, and is this sustainable?

00:28 Gio

Well, there are two uh two aspects to to this. One is uh the market is strong. The market is strong on the

00:36 Gio

um on the hyperscale side, on the new cloud side, certainly, uh there is an ecosystem of uh uh co-location uh providers and uh build to suit uh data center providers, but also uh moving is the enterprise business in the data center space. So, with this favorable environment, a player like ourselves with a with very strong partnerships on the customer side and on the on the silicon side and uh certainly with a very strong technology, a full portfolio and a very strong go-to market

1:08 Gio

uh is not only benefit from a market acceleration, but also also taking market share, we believe. And this is pretty much what is reflected that there in a in a in a very, um, in a quarter was a very strong. We are very pleased about the quarter, of course. Uh and again, uh in in a business where the individual um orders are becoming bigger and uh this is reflected in this growth. So, very encouraging, very encouraging from uh for uh for the years for the this year and the years ahead.

1:33 Speaker A

You know, Gio, what moves do you have to make now to kind of meet all this demand? I mean, what what what levers do you have to to pull Gio? Do you have to listen, does this mean okay, I got to scale capacity, I got to make even more investment. Walk me through it.

1:46 Gio

Sure, absolutely. So this is not something that caught us by surprise, if you will. We we are aware and and very, we have a very strong handle on the demand curve of uh of the industry. Uh we’ve been in the industry for for many many years and we are now really a thought leader in the industry. We know what’s coming. So, we have been preparing and uh in terms of preparing, we also are um expanding our footprint, accelerating our CAPEX. But again, we are anticipating the demand and ready to to follow and to deliver on the backlog that we’re building.

2:22 Speaker A

There are some investor, Gio and of course, they’re wondering, hey, is this is this the peak of AI spend, you know, is is are we going to then cool in 2027? And I’m just wondering based on your business, Geo, you know, do you see any signs, any any signals of that?

2:36 Gio

It’s true that we’ve heard that for for probably the last uh two and a half years, if not three years, the same. But uh quite quite honestly, uh we see that the the most reassuring thing is the speed at which we see AI being monetized. And I think most of the of the hyperscalers recently in their earning call, earnings call were extremely vocal about that. So, quite honestly, from what we’ve seen the market, from what we see in our pipeline and what we hear from our customers, and what everyone hear also in uh in the uh let’s say all investor can hear, this is this is a long-term trend. This is a secular cycle and uh this is just the beginning.

3:00 Speaker A

Geo, you know, we we talked about order growth to begin. Uh your profit margins too, Geo, they also look to be improving. What what’s going on there? Is that um is that raising prices, Geo? Is that you all getting more efficient? some combination?

3:15 Gio

It’s all of the it’s all of the above. Of course, uh, you know, we have a value. We deliver value to our customers. Um value translates into an ability to uh leverage that value in terms of in terms of price. But it’s only because of the value that we deliver to our customers. But then there is efficiency, there is leverage of fixed costs, all things that happen when you diligently run a business, very diligently and are ready for growth and uh and growth delivers leverage.

3:48 Speaker A

What what about tariff impact, Gio? I’m curious. How are you trying to how are you navigating that dynamic?

3:55 Gio

Well, look, uh at this stage we look at tariffs as uh just another input cost. So, uh we factor that in the dynamics of uh of the cost of uh of the components, of the materials that we use to uh to manufacture and deliver our products.

4:07 Speaker A

In terms of regional strength, Geo, it looks like most of the growth coming from the Americas. Why is that region so much stronger than Asia and Europe, Geo? Um help me understand that and and what do you see ahead?

4:18 Gio

Sure. Um, I have to say that uh while the the the the Americas has been the the the engine of uh of growth in 2025, but when we will look at 20 at the last quarter of 2025, we’re pretty pleased about the the widespread growth of of orders. That’s global. But let me talk about the dynamics um uh globally. Certainly, the Americas, uh North America, the US specifically very strong in terms of uh data center CAPEX investment and growth and we’re capturing capturing that.

4:51 Gio

Uh the if you take Asia or APAC and if you take uh EMEA, Europe, that has been a little bit slower. So we see those uh dynamics accelerating and uh both in uh APAC and in and especially in India and uh the rest of Asia excluding China, very strong demand and acceleration. and and we see also very optimistic signals in uh in Europe and Europe, Middle East and Africa.

5:18 Gio

As uh as I said, we we delivered a very strong orders uh quarter and we are very optimistic about the the growth ahead.

5:26 Speaker A

Finally, Gio, just get you out on this. my you know, my colleague Jake Conley’s been doing some good reporting on this and Jake recently pointed out recently New York, Gio became at least the sixth state here to see its legislators propose a bill pausing data center construction within state lines.

5:43 Speaker A

So a bit of a trend, Geo, you know, some resistance we’re hearing from Americans, they they don’t like what they see with their electricity bills, Geo, they don’t like maybe the the sound of the cooling systems in the data centers. I mean, you’re seeing these headlines and reports. What do you make of that?

5:59 Gio

Um, I think there first of all, probably a misconception around what what really are the benefits of uh having a data center in uh in in a certain uh community. Uh and uh and misconception of the downsides that are uh probably not necessarily correct and right, but not the place to elaborate on uh on that here. What we know is that there is a need for uh for uh data center capacity uh and uh you know, the the the growth will continue. Maybe the geography if those are the obstacles will change a little bit, but uh the industry is very dynamic, is very, let let’s say, innovative and things will move around.

6:41 Speaker A

Jay, Geo as always, so great to have you on the show. Appreciate your time.

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