Vertiv (VRT) JPMorgan Industrials Conference 2026 summary

Market and industry trends

• AI adoption is in early stages, with strong demand and a long growth trajectory expected.

• Power remains a key bottleneck, but industry is managing it with capital and innovation.

• Liquid cooling is becoming ubiquitous in data centers, with air cooling growth slowing as the mix shifts.

• Enterprise and telecom segments are growing, though enterprise is still early and telecom is slower.

• EMEA region is showing signs of recovery and optimism, with a positive outlook for the second half of the year.

Technology and product evolution

• Industry is moving toward more integrated, converged infrastructure, increasing value per megawatt.

• Prefabricated systems use mostly in-house equipment, optimizing for specific applications.

• Multiple powertrain architectures will coexist, with 800 VDC and medium voltage gaining traction.

• Liquid cooling and advanced heat rejection systems are driving efficiency and complexity.

• Service opportunities are expanding due to increased system complexity and need for lifecycle support.

Financial and operational outlook

• Margins are expected to improve from high 20s% to low 30s% as capacity investments are absorbed.

• Service business is growing in double digits, with a focus on lifecycle and extended warranty contracts.

• Permanent optimization and regional restructuring are ongoing to align with market dynamics.

• Americas benefit from volume, EMEA is rebounding, and APAC shows steady growth.

• Strong balance sheet supports R&D, CapEx, and selective strategic acquisitions, with a preference for organic growth.