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Vertiv Earnings Prove the AI Infrastructure Boom Is Intact
Authored by Chris Markoch. Posted: 2/11/2026.
Key Points
- Vertiv’s quarter featured a slight revenue miss but a clear EPS beat, reinforcing strong AI-driven demand for cooling and power infrastructure in data centers.
- Orders, backlog, and a bullish 2026 outlook remain the core drivers behind the post-earnings surge in VRT shares.
- Technically, the stock looks extended after breaking above key resistance, making pullbacks or consolidations the more favorable entry setups.
- Special Report: [Sponsorship-Ad-2-Format3]
If there's an AI bubble, the memo never got to Vertiv (NYSE: VRT) or its customers. The company delivered an earnings report and guidance that show strong demand for its cooling systems — a reminder that, in any market, it often pays to buy the best.
Vertiv's headline results were mixed versus estimates. Revenue of $2.88 billion came in just under the $2.89 billion forecast, but was still 22.5% higher on a year-over-year (YOY) basis. Earnings per share (EPS) of $1.36 beat expectations of $1.29 and were 37% higher YOY.
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See Dylan Jovine's Gold Miner Pick Before the March 31 Delivery WindowShares of VRT stock popped 12% in the premarket. That momentum carried into the session — at midday the stock was trading more than 18% higher after strong labor data eased broader economic concerns and reduced near-term pressure on technology stocks.
Investors hoping for a buy-the-dip opportunity will likely have to wait. With the stock looking extended, watch closely for a pullback that could present a buying opportunity.
An Essential Technology for Data Centers
Vertiv manufactures and services equipment and software that support power availability, thermal management and IT infrastructure management across a variety of end markets, including data centers.
The company's water-cooled rack systems and related products are critical to meeting the demands of artificial intelligence (AI), which requires continuous operation and generates significant heat. That explains strong, persistent demand for Vertiv's solutions.
That demand showed up in the earnings release:
- Trailing twelve-month (TTM) organic orders growth of approximately 81% YOY.
- Fourth-quarter orders up about 252% YOY and approximately 117% sequentially.
- Book-to-bill ratio of approximately 2.9x.
The recent rally in VRT shares is driven largely by investor excitement around the company's 2026 outlook:
- A backlog of roughly $15 billion, up about $7.8 billion (109% YOY) and up 57% sequentially.
- Robust global order-pipeline growth in the fourth quarter across product technologies and regions, fueled by continued expansion in AI and data-center infrastructure investments.
- Management expects 2026 orders to be up year-over-year.
- Pricing in 2025 exceeded inflation, and Vertiv expects that trend to continue in 2026.
In the immediate aftermath of the report, analyst pages on MarketBeat didn't show new upgrades or price-target increases. The trend, however, has been bullish — recent price targets were already well above the consensus price target of $187.89.
That said, at $237.46 as of this writing, the stock is trading well above both the consensus target and the highest analyst target. It appears analysts were cautious ahead of the report; now sentiment may shift more decisively toward the bullish side.
How Should Investors Play VRT Stock?
After earnings, VRT has cleared resistance around $200, confirming the bullish trend reversal that began in mid-December.
But the stock looks extended and could be due for mean reversion. The rally has pushed VRT above its 20-day simple moving average (SMA) and the upper Bollinger Band.
Technical indicators also suggest short-term caution: the relative strength index (RSI) is about 76, indicating overbought conditions, even as the MACD histogram expands — a sign more impulse buying may still be underway before any pullback.
Existing shareholders may consider trimming into strength — taking some profits now and waiting for a decisive drop below the 20-day SMA as a re-entry signal.
Prospective buyers might wait for a pullback to the prior resistance zone of $195–$205. If the stock instead consolidates around current levels rather than falling, that could indicate a new, higher base has formed and change the risk/reward for new entries.
Spotify Just Crushed Earnings—So Why Is the Stock Still Down 34%?
Authored by Chris Markoch. Posted: 2/10/2026.
Key Points
- Spotify posted a strong earnings beat, driven by margin expansion and subscriber growth across all regions.
- SPOT stock showed technical signs of being oversold before earnings and surged back toward key moving averages.
- Despite lower price targets, most analysts maintain Buy ratings with upside well above current levels.
- Special Report: [Sponsorship-Ad-2-Format3]
Spotify Technology (NYSE: SPOT) delivered a strong earnings report that reinforces its leadership in audio streaming and suggests its new initiatives will drive future growth. For investors, that makes SPOT worth a fresh look — the stock was down more than 34% for 2026 in early February.
Heading into the report, the SPOT chart showed clear signs of being oversold. The earnings release supports a bounce higher, especially as money begins to flow back into technology stocks.
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See Dylan Jovine's Gold Miner Pick Before the March 31 Delivery WindowAs of the market close on Feb. 9, the stock price sat below its lower Bollinger band and the relative strength index was firmly in oversold territory. A roughly 17% pop in the first hour of trading following the report pushed the stock back to its 20-day simple moving average (SMA).
With positive subscriber momentum and Spotify's expansion into new products like video and audiobooks, this looks like a solid entry point for investors seeking growth in 2026.
Analysts Have Been Leading the Way
Before the earnings report, SPOT fell sharply after KeyCorp cut its price target to $720 from $830, slightly below the consensus target of $724.16. KeyCorp wasn't alone — many analysts have trimmed targets since the start of the year.
That said, investors should separate the act of lowering targets from the level of those new targets. Most of the revised targets remain well above the stock's $414.74 close on Feb. 9; several are even above the consensus target.
Importantly, despite the lower targets, most analysts have kept Buy (or equivalent) ratings. According to the Spotify analyst forecasts, 34 analysts cover SPOT: 26 rate it Buy (or equivalent) and eight rate it Hold (or equivalent).
Spotify Is Firing on All Cylinders
Revenue was €4.53 billion (roughly $5.27 billion), just above the €4.52 billion ($5.14 billion) estimate. The bottom line, however, stole the show: adjusted earnings per share were €4.43 (about $5.16), well ahead of the €2.78 (≈$3.16) estimate.
Spotify added 38 million monthly active users (MAUs), bringing the total to 751 million — up 11% year over year. Premium subscribers rose to 290 million, a 10% gain year over year, with growth across all regions.
With roughly two-thirds of users still on the free tier, this quarter's results show Spotify is getting more efficient at monetizing each user while keeping costs under control.
That efficiency appeared in the operating margin, which widened to 15.5% from 11.2% a year earlier. The improvement reflects a combination of pricing moves and a healthier revenue mix.
Premium revenue grew not only from a larger subscriber base but also from price increases that strengthened the bottom line. Spotify is also managing costs effectively: gross margin came in at 33.1%, above the company's guidance of 32.9%.
Ad revenue was a weaker spot in the report, but that aligns with management's recent focus: this quarter prioritized growing subscriptions. A larger audience and stronger engagement should allow Spotify to command higher ad prices going forward. Analysts estimate that improved ad monetization could add as much as $1 billion in revenue over the next 12 months.
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