Feedback from our initiation (Data Centers + HVAC): VRT, NVT, TT, JCI, CARR

Research evidence excerpt

Feedback from our initiation (Data Centers + HVAC): VRT, NVT, TT, JCI, CARR

30 June 2026

U.S. Multi Industry & Electrical Equipment

Feedback from our initiation (Data Centers + HVAC): VRT, NVT, TT,

JCI, CARR

We initiated coverage on US multi-industrials in early June 2026. This note summarizes key Varun Govindaraj

+1 917 344 8543 themes, sentiment, and feedback that we are hearing from investors on data center and

varun.govindaraj@bernsteinsg.com HVAC names. Our full initiation document can be viewed here.

Specialist Sales VRT: While we continue to believe in their long-term ability to win, investor sentiment

has certainly skewed more cautious in the run-up to earnings. The last week was a great Steve Song

+1 917 344 8401 example of volatility we’re seeing. Investor day reception has been tepid, and people

steve.song@bernsteinsg.com we spoke with wonder if the lukewarm guide was a reflection of growth tapering or

management conservatism (we lean towards the latter). Regardless, the market expects

a meaningful beat and raise going into 2Q26 to justify the current multiple. 800V DC

continues to be a major conversation topic given it’s likelihood to create headwinds on

content per MW + VRT’s own right to win with more “power native” competition. Again,

Vertiv has demonstrated an impressive innovation cycle time, so we are not particularly

concerned especially if true uptake is deferred to 2028.

NVT: We’ve heard fewer concerns around valuation vs. Vertiv with more room for positive

catalysts. It largely comes down to how quickly you believe revenue can grow; and given

we’re still ramping up CDU capacity (and newer generation products are yet to be fully

launched) we think there’s more headroom to go before we start seeing inflection. We