EarningsQ2 2026 Earnings Report
TSE:VRT Q2 2026 EPS Results
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TSE:VRT Q2 2026 Revenue Results
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Earnings Announcement Details
QuarterQ2 2026
Date07/29/2026
TimeBefore Open
Conference CallWednesday, July 29, 2026
TSE:VRT Upcoming Earnings
Vertiv Holdings Co Sponsored Canadian Depository Receipt Hedged's next earnings date is estimated for October 28, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Vertiv reported broad-based revenue growth, significant margin and EPS expansion, exceptional free cash flow, a net cash position, accelerating pipeline momentum, and higher full-year guidance across all key metrics. The primary challenges were timing shifts and supply chain complexity in large projects, a Q2 organic sales decline in EMEA, tariff impacts, and higher cash taxes and CapEx, but management stated that the timing delays are expected to resolve and remained confident in second-half execution.Company Guidance
Strong Second-Quarter Revenue Growth
Q2 net sales were $3.274 billion, up $636 million or 24% versus Q2 2025. Organic sales growth was 18%, with an additional 5% contribution from acquisitions and 1% from favorable foreign exchange.
Broad-Based Regional Performance
Americas net sales grew 29% to $2.071 billion, with 21% organic growth. APAC net sales grew 29% to $720 million, with 26% organic growth. EMEA net sales increased 2% to $484 million, and management said the region is expected to return to organic sales growth in the second half of 2026.
Record Margin and Operating Profit Expansion
Adjusted operating margin was 22.6%, exceeding guidance by 140 basis points and expanding 410 basis points year over year. Adjusted operating profit was $738 million, up $249 million or 51% versus the prior year and $28 million above the midpoint of guidance.
Adjusted EPS Beat and Growth
Adjusted diluted EPS was $1.52, up $0.57 or 60% versus the prior year and $0.12 above guidance. The improvement was driven primarily by higher sales volume, increased profitability, and continued operational productivity.
Exceptional Free Cash Flow Generation
Adjusted free cash flow was $925 million, up $648 million or 234% year over year, with free cash flow conversion exceeding 150% in the quarter. The improvement was driven by higher adjusted operating profit, strong working capital performance including project milestone collections and initial advanced payments, and lower cash interest.
Raised Full-Year 2026 Guidance
The company raised guidance across all key metrics. Net sales are now expected at $14 billion, up $250 million from prior guidance and 37% versus 2025. Adjusted diluted EPS is expected at $6.70, up 60% versus 2025, adjusted operating profit is expected to increase approximately 59%, and adjusted free cash flow is expected at $2.5 billion, up 182% versus 2025.
Higher Full-Year Margin Outlook
Full-year adjusted operating margin is expected at 23.8% at the midpoint, approximately 340 basis points above 2025 and 50 basis points above prior guidance. Management attributed the expansion to continued operational leverage and positive price-cost execution.
Strong Third-Quarter Outlook
Third-quarter adjusted diluted EPS is projected at $1.80 at the midpoint, up 45% year over year. Net sales are expected at $3.75 billion, up 40%, with approximately 35% organic growth and an additional 5% from acquisitions. Adjusted operating profit is expected at $918 million, up 54%, and adjusted operating margin is expected at 24.5%, up 220 basis points.
Robust and Accelerating Pipeline
Management said global pipeline momentum remains very strong, with another year of robust orders growth expected. Pipeline acceleration reflects faster sales cycles, while pipeline strength is also broad-based across regions, products, and customer categories including hyperscalers, enterprises, colocation providers, and neocloud customers.
Capacity Expansion Across Regions
Additional capacity is online globally, including the Johor facility in Malaysia, five large plant expansions in the Americas, and chiller capacity increases in EMEA. The company expects capital expenditures to be at the high end of its range, or 4% of 2026 sales, as it expands global capabilities and capacity going into 2027.
Continued Investment in Technology and Capacity
Vertiv is continuing to invest in future power architecture, advanced thermal systems, services, converged infrastructure, capacity, engineering, and R&D. Management said these investments are intended to support next-generation AI data centers and factories and to support growth beyond the expected 45% growth in the second half.
Advancing Multiple Power Architectures
Vertiv is supporting multiple AC and DC power architectures as power requirements evolve. The 800V DC rack- and pod-level architecture is under customer validation in 2026, with deployment planned in 2027. The data-hall-level 800V DC architecture is in development, with customer validation planned for 2027 and deployment planned for 2028.
AI Data Center Customer Collaborations
Vertiv was awarded the power, thermal, and services business for the initial phase of VisionBay AI's site in Kaohsiung, Taiwan, described as Taiwan's first AI data center featuring NVIDIA GB300. Vertiv is also collaborating on an AI data center adopting 800V DC architectures at the rack and pod level featuring NVIDIA Vera Rubin.
Expanded Thermal Management and Water Efficiency Offering
Vertiv's closed-loop cooling architectures are designed to enable data centers to operate with no water consumption after initial fill. PurgeRite near-zero uses closed-loop recirculation to capture, treat, and reuse water during startup, reducing water normally used in the process by up to 90%.
Thermal Management Acquisitions Completed
Vertiv closed the Thermo King acquisition, strengthening heat-rejection capabilities, and closed the Thermal-Lube acquisition in April, adding server-side liquid cooling and cold-plate expertise for high-density thermal management.
Reference AI Infrastructure Deployments
In partnership with NVIDIA, Vertiv delivered a fully engineered packaged rack, power, and cooling system at the Naval Postgraduate School, including liquid-cooling integration, commissioning, and deployment support. Vertiv described the project as a repeatable, scalable reference architecture for NVIDIA GB300.
EMEA Customer Project Momentum
In Germany, Vertiv is providing Dataforce with a complete powertrain, including switchgear, UPS, and battery systems, along with a thermal chain consisting of chilled-water units, free-cooling chillers, and services for Dataforce's new Frankfurt site.
Improved Liquidity and Balance Sheet Position
Vertiv ended Q2 in a net cash position, with net leverage at negative 0.1x. Management said this provides additional flexibility. Deferred revenue increased due to project advance payments and ongoing milestone collections.
Active but Disciplined M&A Strategy
Management said the M&A market is active and that Vertiv is evaluating several targets. Potential acquisitions are being assessed for portfolio fit, regional reach, faster access to products or markets, and technologies Vertiv does not currently have, while the company continues to prioritize capacity, R&D, and internal development.
Positive Price-Cost Execution
Pricing remains favorable, and management expects positive price-cost execution in 2026, including the current impact of tariffs and countermeasures.
TSE:VRT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed