Vertiv Holdings, LLC (VRT) Earnings

metirFinance

Sep 2026upcoming

Next quarter

Reports Oct 28, 2026.

Consensus is $1.83 EPS for Sep 2026 across 7 estimates, ranging $1.79 to $1.94.

VRT Jun 2026

Reported Jul 29, 2026

: 6.29%
: +2.00%

: $1.43
: $1.52
: —
: $3.27B

Reported results

: $3.27B; from $2.64B
: 37.71%; from 33.99%
: $637.90M; from $442.40M
: 19.48%; from 16.77%
: $497.80M; from $324.20M
: $1.27; from $0.83

Highlights

Demand and growth: Second-quarter revenue rose 24% year over year to $3.27 billion, including 18% organic growth, a 5% acquisition contribution and a 1% foreign-exchange benefit.
Earnings beat: Adjusted diluted EPS was $1.52 versus consensus of $1.43, a 6.29% surprise; GAAP diluted EPS was $1.27, up 53% from $0.83 a year ago.
Margin expansion: Adjusted operating profit increased 51% to $738.4 million and adjusted operating margin reached 22.6%, up 410 basis points year over year.
Sequential acceleration: Revenue increased from $2.65 billion in the first quarter to $3.27 billion, while GAAP operating income rose from $440.1 million to $637.9 million and diluted EPS from $0.99 to $1.27.
Regional mix: Americas revenue grew 29.2% to $2.07 billion and Asia Pacific revenue grew 28.5% to $719.9 million, while EMEA revenue was up only 1.7% to $483.6 million.
Cash generation: Operating cash flow was $1.10 billion and adjusted free cash flow was $925.3 million, increases of 241% and 234%, respectively, from the year-ago quarter.
Guidance raised: Full-year 2026 revenue guidance is now $13.8 billion to $14.2 billion, with 30%-32% organic growth; adjusted EPS guidance is $6.65 to $6.75 and adjusted free cash flow guidance is $2.4 billion to $2.6 billion.
Capacity and portfolio investment: Vertiv spent $173.3 million on capital expenditures in the quarter and completed three acquisitions for $331.8 million of consideration, adding liquid cooling, heat-exchange and structural fabrication capabilities.

Analysis

Vertiv’s second quarter was a strong demand-and-execution print, with adjusted EPS of $1.52 beating the $1.43 consensus by 6.29%. Revenue of $3.27 billion rose 24% from $2.64 billion a year ago and 23% from $2.65 billion in the prior quarter. GAAP operating income increased 44% year over year to $637.9 million, while net income rose 54% to $497.8 million. Adjusted operating margin expanded to 22.6% from 18.5% a year ago, reflecting mix, productivity, operational leverage and price-cost benefits that included tariff countermeasures.

The main feature was continued AI and high-performance-compute infrastructure demand, particularly in the Americas and Asia Pacific, alongside evidence that Vertiv is converting growth into cash. Operating cash flow reached $1.10 billion and adjusted free cash flow $925.3 million, helped by $451.0 million of working-capital inflow, including a $1.17 billion increase in deferred revenue. Management cited temporary supply-chain congestion and multi-phase project execution as modest revenue timing headwinds, but raised full-year guidance across revenue, profit, EPS and cash flow. The quarter also marked a heavier investment phase: capital expenditures rose to $173.3 million, full-year capital spending is expected at about 4% of revenue, and Vertiv ended the period in a net cash position with $5.6 billion of liquidity.

AI infrastructure demand

Vertiv described a market in which AI and general-compute deployments are becoming larger, more complex and more infrastructure-intensive. The company is expanding capacity and investing in power, thermal management, liquid cooling, modular systems and related technologies to support customer deployment speed and scale. Revenue growth was partly held back by temporary supply-chain congestion and multi-phased project execution, rather than weaker demand.

Americas: Revenue increased 29.2% to $2.07 billion, with products up $345.3 million and services and spares up $123.2 million; operating profit rose 48.6% to $571.4 million and margin expanded to 27.6% from 24.0%.
Asia Pacific: Revenue rose 28.5% to $719.9 million and operating profit increased 61.5% to $95.6 million, lifting margin to 13.3% from 10.6%.
EMEA: Revenue grew only 1.7% to $483.6 million, including a negative 2.4% organic change; operating profit still rose 19.2% to $124.2 million as project execution improved.

Margin expansion

The quarter showed substantial operating leverage as revenue scaled. Gross margin increased to 37.7% from 34.0%, primarily from product and service mix, while adjusted operating margin rose 410 basis points. Management attributed the improvement to operational execution, productivity and favorable price-cost, including actions taken against tariff impacts.

Operating profit: GAAP operating profit increased $195.5 million to $637.9 million, with operating margin rising to 19.5% from 16.8%.
Adjusted earnings: Adjusted operating profit increased $249.1 million to $738.4 million; adjusted EPS rose 60% from $0.95 to $1.52.
Underlying adjustments: The quarter included $73.7 million of intangible amortization and a $28.8 million increase in the fair value of PurgeRite contingent consideration.

Cash and balance sheet

Cash conversion was a defining feature of the quarter. The working-capital contribution was unusually large, led by deferred revenue, as Vertiv continues to receive cash ahead of recognizing portions of its project and service revenue. The company is simultaneously increasing investment to expand capacity.

Free cash flow: Operating cash flow was $1.10 billion versus $322.9 million a year ago, and adjusted free cash flow was $925.3 million versus $277.0 million.
Working capital: Operating working capital provided $451.0 million in the quarter, including a $1.17 billion increase from deferred revenue, partly offset by higher inventories and receivables.
Liquidity: Cash and cash equivalents were $2.81 billion, short-term investments were $300.0 million, and total liquidity was $5.6 billion; Vertiv reported a net cash position at quarter-end.
Investment: Capital expenditures were $173.3 million versus $45.0 million a year ago. Full-year capital expenditures are expected at approximately 4.0% of revenue, or $550 million to $570 million.

Raised 2026 outlook

Management raised its full-year outlook across the key operating and cash metrics, citing strong demand, strengthening pipelines and accelerated capacity expansion. The third-quarter outlook implies another step up in revenue and adjusted margin, although the company continues to flag execution complexity as deployments grow.

Full-year revenue: Guidance is $13.8 billion to $14.2 billion, with 30%-32% organic growth; the midpoint of $14.0 billion represents 31% growth from 2025.
Full-year profit: Adjusted operating profit guidance is $3.285 billion to $3.365 billion, with adjusted operating margin of 23.3%-24.3%.
Full-year EPS and cash flow: Adjusted diluted EPS is guided to $6.65-$6.75, representing 58%-61% growth, and adjusted free cash flow is expected at $2.4 billion-$2.6 billion.
Third quarter: Revenue is expected at $3.65 billion-$3.85 billion, adjusted operating margin at 24.0%-25.0% and adjusted EPS at $1.77-$1.83.

Acquisitions and financing

Vertiv continued to broaden its thermal and engineered-infrastructure portfolio while refinancing its debt earlier in the year. The acquisitions add capabilities in liquid cooling, heat exchange, heat rejection and custom structural fabrication, but also increased amortization and contingent-consideration charges.

Quarterly acquisitions: Three businesses were acquired for aggregate consideration of $331.8 million, including $278.1 million in cash, with $260.1 million of preliminary goodwill and $67.4 million of finite-lived intangible assets.
PurgeRite liability: The fair value of PurgeRite contingent consideration rose to $234.6 million across current and long-term liabilities, generating a $28.8 million second-quarter operating expense and $62.0 million in the first half.
Debt structure: Vertiv issued $2.1 billion of senior notes in March and used the proceeds and cash to repay its term loan. It ended June with $2.94 billion of net long-term debt and $2.48 billion of availability under its $2.5 billion unsecured revolving facility.

Vertiv Holdings, LLC

Peers