Why Virtue stock soared 37% in February

shares Vertiv Holdings (NYSE: VRT )which specializes in providing cooling and power solutions for artificial intelligence (AI) data centers, rose 36.9% in February, according to data from S&P Global Market Intelligence. For context, last month d S&P 500 The index fell 0.9% and is tech-heavy Nasdaq Composite The index fell 3.4%.

Shares of Virtue retreated 5.2% on Tuesday, March 3, amid a market slump over the Iran war. But they are still at a full 50.9% of the year as of March 3.

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Now, let’s look at why Virtue stock had such a great February performance.

On February 11, Virtu stock rose 24.5%. Catalyst released the company’s fourth quarter 2025 report. Shares were already up 7.2% for the month ahead of the earnings release. And after the earnings release, they rose slightly for the rest of the month.

In Q4, Virtu’s revenue grew 23% year-over-year to $2.88 billion. Organic revenue growth (growth of businesses owned for at least one year) was 19%. Revenue growth was primarily driven by strong demand for cooling and power solutions for artificial intelligence data centers.

Earnings per share (EPS), adjusted for one-time items, rose 37% year over year to $1.36, beating the Wall Street consensus estimate of $1.30. The company has exceeded analysts’ expectations in four of the past four quarters.

I would be remiss if I didn’t mention a couple of powerful metrics: Vertue’s book-to-book ratio and its cash flow. In the fourth quarter, the book-to-book ratio was 2.9x, with backlog increasing to $15.0 billion, an increase of 109% compared to the same period last year. A book-to-book ratio greater than 1.0 indicates increasing demand for a company’s product.

Operating cash flow was $1.01 billion and adjusted free cash flow was $910 million, an increase of 136% and 151%, respectively, over the prior year period.

The full-year 2026 guidance was probably an even bigger reason for Vertue’s stock shooting higher after the earnings release than the Q4 results. Guidance beat Wall Street estimates, especially on the bottom line.

For 2026, management has guided for the following:

• Revenue of $13.25 billion to $13.75 billion, with annual organic growth of 27% to 29%.

• Adjusted EPS of $5.97 to $6.07, which translates to 43% year-over-year growth at the midpoint.

Going into the earnings release, Wall Street was modeling for 2026 revenue of $12.4 billion and adjusted EPS of $5.33. So, Virtue met both expectations, with profit guidance taking a particularly big hit.

Considerable, Vertiv a Nvidia Is a friend and has collaborated with the AI ​​chip leader on several projects.

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Beth McKenna holds positions in Nvidia. The Motley Fool has and recommends positions in Nvidia and Vertiv. Motley Fool has a disclosure policy.

Why Virtue Stock Soared 37% in February was originally published by The Motley Fool