Vertiv Q2 Earnings Beat Estimates, Net Sales Rise Year over Year

VRT’s Regional Sales Show Broad-Based Growth

Americas net sales rose 29% year over year to $2.07 billion, with organic growth of 21%. Management said that minor timing shifts tied to temporary supply-chain congestion and multi-phased project execution affected second-quarter revenues, but expects the associated delays to resolve in the second half of 2026.

Asia Pacific sales advanced 29% year over year to $720 million, including 26% organic growth. Europe, the Middle East and Africa (EMEA) sales increased 2% year over year to $484 million, while organic sales declined 2%. Vertiv expects strengthening demand and pipeline conversion to return EMEA to organic growth in the second half.

Vertiv’s Revenue Mix Highlights Service Momentum

Product revenues increased 22.2% year over year to $2.65 billion, accounting for about 81% of total sales. Service revenues climbed 32.9% year over year to $627.6 million, outpacing product growth and reflecting demand across Vertiv's installed infrastructure base.

The company highlighted strong global pipeline momentum and expects another year of robust order growth. Management cited accelerating activity in the Americas, improving momentum in EMEA and broad-based strength across APAC. Pricing is expected to remain favorable and exceed inflation in 2026.

VRT’s Profitability Expands on Operating Execution

Selling, general and administrative expenses increased 25% year over year to $494.4 million. 

Adjusted operating profit surged 51% year over year to $738 million, exceeding the midpoint of guidance by $28 million.

Adjusted operating margin expanded 410 basis points to 22.6% and came in 140 basis points above guidance. Operational execution, productivity and favorable price-cost performance drove the improvement, partly offset by tariff impacts and continued investments in capacity and engineering research and development.

Americas adjusted operating profit increased 48.6% year over year to $571 million. APAC’s adjusted operating profit surged 61.5% to $96 million, while EMEA’s adjusted operating profit rose 19.2% to $124 million.

Vertiv’s Cash Flow Strengthens Financial Flexibility

As of June 30, 2026, cash and cash equivalents were $2.81 billion, $300 million in short-term investments and $2.94 billion in long-term debt. Liquidity totaled $5.6 billion, while net leverage was negative 0.1 times, reflecting a net cash position.

Net cash provided by operating activities totaled $1.10 billion compared with $322.9 million a year earlier. Adjusted free cash flow increased 234% to $925 million, aided by higher adjusted operating profit, working-capital efficiency and lower cash interest.

VRT’s AI Investments Support Capacity Expansion

Capital expenditures are expected to reach about 4% of 2026 sales, the high end of management's range. Vertiv is expanding manufacturing capacity globally while investing in future power architectures, advanced thermal systems, services and converged infrastructure for next-generation AI data centers.

The company is also advancing power systems that support both traditional alternating-current infrastructure and emerging 800-volt direct-current designs. Its thermal portfolio includes closed-loop cooling and fluid-management services intended to reduce ongoing water usage and lower water needs during data-center commissioning.

Vertiv Raises 2026 Guidance Across Key Metrics

For the third quarter of 2026, Vertiv expects net sales of $3.65 billion to $3.85 billion and adjusted earnings of $1.77 to $1.83 per share. Adjusted operating profit is projected to be between $898 million and $938 million, with an adjusted operating margin of 24% to 25%.

For 2026, net sales are now forecasted to be in the range of $13.8 billion to $14.2 billion, up $250 million at the midpoint from the prior guidance. Adjusted earnings are projected to be in the range of $6.65 to $6.75 per share, while adjusted operating profit is expected to be between $3.29 billion and $3.37 billion. Adjusted free cash flow guidance was raised to $2.4 billion-$2.6 billion.

VRT’s Zacks Rank & Other Stocks to Consider

Vertiv currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Zacks Computer and Technology sector include Arista Networks ANET, ACI Worldwide ACIW and Analog Devices ADI. Each stock carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arista Networks shares have gained 20.6% in the year-to-date period. Arista Networks is set to report second-quarter 2026 results on Aug. 4.

Shares of ACI Worldwide have gained 25.9% in the year-to-date period. ACI Worldwide is set to report the second-quarter 2026 results on Aug. 6.

Shares of Analog Devices have rallied 30.3% in the year-to-date period. Analog Devices is slated to report fiscal third-quarter 2026 results on Aug. 19.

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