This data center stock is up over 1000% in the last five years. Trader Mike Khouw sees more gains

• Vertiv reported Q2 2026 results with 24% growth in net sales and 410 basis point expansion in adjusted operating margins, raising full-year guidance across all key metrics
• CEO expressed unprecedented confidence in the company's trajectory, citing strong, broad-based, and accelerating momentum driven by data center capital expenditure
• The stock temporarily sold off after earnings due to supply-chain related delays but has since recovered to near its 150-day moving average, with next earnings scheduled for October 22nd

Summary

Company Performance:

Vertiv Holdings (VRT), an Ohio-based electrical power equipment manufacturer, has surged over 1,000% in the past five years. The company specializes in DC power systems, cooling solutions, and equipment critical to data center operations.

Recent Financial Results:

In Q2 2026 earnings, Vertiv reported strong performance:

• 24% growth in net sales
• 410 basis points expansion in adjusted operating margins
• Raised full-year 2026 guidance across all key metrics

CEO Giordano Albertazzi expressed unprecedented confidence in the company's trajectory, citing "strong, broad-based, and accelerating" momentum.

Market Dynamics:

The stock experienced a temporary sell-off following the earnings report, not due to poor outlook but concerns about supply-chain delays pushing some sales to the second half of the year. Shares have since recovered and are trading near the critical 150-day moving average.

Investment Outlook:

Trader Mike Khouw remains bullish, anticipating further gains if the company meets or exceeds guidance without additional delays. The next earnings report is scheduled for October 22nd. Khouw could potentially regain ground lost since mid-May highs.

Trading Strategy:

Khouw recommends a longer-dated call spread risk reversal with early 2027 expiration, providing flexibility for timing gains or losses across tax years while maintaining short-term capital treatment.

Sector Context:

Vertiv's strong performance is driven by massive capital expenditure in data centers, positioning the company to benefit from ongoing infrastructure demand in this critical sector.