CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
VRT delivered robust Q1 results with EPS of $1.17 vs. consensus of $1.01 and net sales of $2.7B (+30% Y/Y), led by 23% organic growth as AI infrastructure demand accelerated. Adjusted operating margin expanded 430 bps Y/Y to 20.8%, reflecting VRT's central positioning in AI infrastructure markets with pricing power enabling improved margin quality. The Americas region (68% of sales) was the primary growth engine with 44% organic growth, supporting our Strong Buy thesis as data center infrastructure demand remains robust. Management raised full-year 2026 guidance with net sales expected at $13.5B-$14B (29%-31% organic growth) and adjusted EPS of $6.30-$6.40 (+50%-52% growth). Operating cash flow surged 153% Y/Y to $767M, supported by working capital efficiency and deferred revenue growth of $651M. We view VRT's strategic investments in technology and manufacturing capacity as helping to differentiate the company as customers prioritize deployment speed and operational efficiency in the AI buildout.