Vertiv Benefits From Margin Gains: Can It Outpace APH and SMCI?

VRT's margin gains and strong sales growth are reshaping its competitive position as Amphenol and Super Micro Computer expand in AI infrastructure.

Nilanshi Mukherjee

3 min read

Vertiv VRT is benefiting from significant margin gains, positioning itself as a formidable competitor in the data center infrastructure sector from companies like Amphenol APH and Super Micro Computer SMCI. In the second quarter of 2026, the company reported an adjusted operating margin of 22.6%, a substantial increase of 410 basis points year over year and well above its previous guidance. This margin expansion was driven by disciplined operational execution, productivity improvements and favorable price-cost dynamics, partially offset by tariff impacts.

VRT’s robust margin performance is underpinned by strong sales growth across key regions. Net sales in the second quarter of 2026 were up 24% compared to the prior year, with the Americas and APAC regions each growing by 29%. The EMEA region returned to positive sales growth, further supporting the company’s global momentum.

When comparing Vertiv to peers like Amphenol and Super Micro Computer, Vertiv’s margin gains and operational momentum stand out. While Amphenol and Super Micro Computer are also benefiting from secular trends in data center and AI infrastructure, Vertiv’s focus on end-to-end solutions for power and thermal management, as well as its ability to scale complex projects globally, provides it with a unique competitive edge. Vertiv’s collaboration with NVIDIA and VisionBay AI in Taiwan showcases its leadership in deploying both AC and 800-volt DC architectures, which increases Vertiv’s content opportunity per megawatt and differentiates it from competitors.

Vertiv remains confident in the persistence of strong operating margins. For the third quarter of 2026, adjusted operating profit is projected to be between $898 million and $938 million, with an adjusted operating margin of 24% to 25%, supported by organic growth, operating leverage and productivity. Regional manufacturing, supply chain actions and disciplined capacity investment remain key to sustaining the margin trajectory as projects scale. Management raised 2026 adjusted operating margin guidance to 23.3%-24.3% and expects pricing to exceed inflation, including current tariffs and countermeasures.

How Competitors Fare Against VRT

Vertiv’s AI infrastructure solutions are facing increasing competition from Amphenol and Super Micro Computer. Both Amphenol and Super Micro Computer are expanding their offerings to support high-density, AI-driven data center deployments.

Amphenol is benefiting from a significant expansion in its operating margins. In the second quarter of 2026, adjusted operating income was $2.61 billion, up 80.2% year over year. Adjusted operating margin improved 420 basis points (bps) year over year to 29.8%, driven by robust operating leverage on significantly higher sales volumes. A major factor behind this margin expansion is Amphenol’s broad-based growth across diverse end markets. In the second quarter of 2026, IT datacom represented about 43% of sales and grew 63% organically year over year.

Super Micro Computer is evolving from just a server and hardware vendor into a full IT solutions provider. Products like DCBBS (Data Center Building Block Solutions) bundle hardware, software, cooling, networking and support into complete systems. This strategy increases revenue per deal and improves margins. In the fourth quarter of fiscal 2026, non-GAAP operating margin increased to 14.3% from 7.2% in the previous quarter.

Vertiv’s Share Price Performance, Valuation, and Estimates

VRT’s shares have surged 63.3% year to date compared with the broader Zacks Computer & Technology sector’s 15.8% rise. The Zacks Computers - IT Services industry declined 14.1% over the same period.

VRT Stock Performance

Image Source: Zacks Investment Research

Vertiv stock is trading at a premium, with a trailing 12-month Price/Book of 21.41X compared with the Computer and Technology sector’s 8.48X. VRT has a Value Score of D.

VRT Valuation

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 earnings is pegged at $6.64 per share, which has increased 3.58% over the past 30 days. This indicates a 58.10% increase from the year-ago quarter.

Vertiv Holdings Co. Price and Consensus

Vertiv Holdings Co. price-consensus-chart | Vertiv Holdings Co. Quote

Vertiv currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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