Vertiv Reports Strong First Quarter with Diluted EPS Growth of 136% (Adjusted Diluted EPS Growth of +83%); Raises Full-Year Guidance
Rhea-AI Summary
Vertiv (NYSE: VRT) reported strong Q1 2026 results: net sales $2,650M (+30% YoY), operating profit $440M (+51%), and adjusted operating margin 20.8% (+430 bps). Adjusted free cash flow was $653M (+147%) and net leverage ~0.2x. Vertiv raised full‑year 2026 guidance to adjusted diluted EPS $6.30–$6.40 and expects organic sales growth of 29%–31%.
Liquidity totaled $5.0B; company completed a $2.1B notes issuance and new $2.5B revolver to support capacity expansion and market share gains.
AI-generated analysis. Not financial advice.
Positive
- Net sales $2,650M (+30% YoY)
- Adjusted operating profit +64% YoY
- Adjusted operating margin 20.8% (+430 bps)
- Adjusted free cash flow $653M (+147%)
- Full‑year adjusted diluted EPS guidance $6.30–$6.40 (≈+51% at midpoint)
- Net leverage ~0.2x and liquidity $5.0B
Negative
- None.
News Market Reaction – VRT
On the day this news was published, VRT declined 2.41%, reflecting a moderate negative market reaction. Argus tracked a peak move of +8.4% during that session. Argus tracked a trough of -2.1% from its starting point during tracking. Our momentum scanner triggered 57 alerts that day, indicating high trading interest and price volatility. This price movement removed approximately $3.07B from the company's valuation, bringing the market cap to $124.39B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
VRT is down 0.63% while close peers show mixed, low-magnitude moves: HUBB +0.41%, NVT +0.23%, AYI -0.24%, AEIS -0.21%, ENS -0.59%. The pattern points to a stock-specific reaction rather than a coordinated sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 14 | Strategic collaboration | Positive | +3.5% | CPower partnership to monetize data center energy assets via VPP platform. |
| Apr 13 | Acquisition | Positive | +1.6% | Acquisition of BMarko to expand manufactured and converged infrastructure capacity. |
| Apr 08 | Earnings date set | Neutral | +7.1% | Announcement of Q1 2026 earnings release and conference call timing. |
| Mar 30 | AI capacity expansion | Positive | +7.0% | Plan to invest $50M to expand Ohio thermal capacity for AI data centers. |
| Mar 24 | Manufacturing expansion | Positive | +5.8% | Four new/expanded Americas facilities to boost AI and high-density capacity. |
Recent Vertiv headlines tied to AI/data center demand, capacity expansion, and partnerships have all seen positive next-day price reactions, suggesting the market has consistently rewarded growth and infrastructure scaling news.
Over the past month, Vertiv has reported a series of growth-focused developments. On Mar 24, it announced major capacity expansions across the Americas, followed by a planned $50 million Ohio manufacturing expansion on Mar 30 to support AI data centers. Early April brought an earnings date announcement and then an acquisition (BMarko Structures) to deepen prefabricated infrastructure capabilities. A collaboration with CPower on grid-integrated energy assets further underscored its data center positioning. Each of these events drew positive price reactions, framing today’s strong Q1 results and raised guidance within an ongoing growth narrative.
Regulatory & Risk Context
An effective S-3ASR shelf filed on 2026-02-19 allows Vertiv to issue various forms of debt securities for general corporate purposes, including working capital, acquisitions, capex, debt repayment or stock repurchases. The shelf has been used in at least 2 prospectus supplements, indicating active capital structure management.
Market Pulse Summary
This announcement highlights a strong start to 2026, with Q1 net sales of $2,650 million (up 30%) and adjusted operating margin expanding to 20.8%. Cash generation was robust, with operating cash flow of $767 million and adjusted free cash flow of $653 million, while net leverage remained low at roughly 0.2x. Raised full-year guidance underscores confidence in data center demand. Investors may track execution on capacity expansions, integration of acquisitions, and any additional draw on the debt shelf used for growth initiatives.
Key Terms
diluted eps financial
adjusted free cash flow financial
non-gaap financial measures financial
adjusted operating margin financial
basis points financial
senior unsecured notes financial
revolving credit facility financial
investment grade ratings financial
AI-generated analysis. Not financial advice.
First Quarter 2026 Results
- Net sales of
$2,650 million 30% higher than first quarter 2025 - Operating profit up
51% and adjusted operating profit(1) up64% from first quarter 2025. Adjusted operating margin of20.8% , up 430 basis points compared to first quarter 2025 - Operating cash flow of
$767 million $653 million 153% and147% , respectively, compared to prior year first quarter. Net leverage of ~0.2x at the end of first quarter 2026
Full Year 2026 Guidance
- Expect net sales of
$13,500 $14,000 million 29% to31% compared to 2025 - Expect full year 2026 diluted EPS of
$5.60 $5.70 $6.30 $6.40 66% and51% , respectively, at the midpoint compared to full year 2025
First quarter operating profit of
"We're seeing data center infrastructure requirements evolve significantly, with customers prioritizing optimized design, deployment speed, and operational efficiency - reshaping their approach to deployment," said Giordano Albertazzi, Vertiv's Chief Executive Officer. "This quarter's financial performance reflects our ability to meet customers at this critical moment with unique capabilities. Our investments in technology and capacity, combined with strategic acquisitions, are translating into market share gains as customers demand faster deployment, greater reliability, and comprehensive services. As infrastructure density increases and deployment timelines compress, we're positioned to be the partner customers need to bring their most ambitious projects to life, at scale."
"This quarter demonstrates that Vertiv has built the kind of competitive position that compounds over time," said Dave Cote, Vertiv's Executive Chairman. "When customers face their toughest infrastructure challenges, they're choosing us - not only because of our technology, but because we can deliver at scale. Our addition to the S&P 500 in March reflects strong financial performance and market leadership in critical digital infrastructure. The strategic momentum gives me confidence in our long-term trajectory."
Adjusted Free Cash Flow and Liquidity
Net cash generated by operating activities in the first quarter was
Liquidity remained strong at
After receiving inaugural investment grade ratings from Moody's (Baa3) and S&P (BBB-) in February 2026, Vertiv completed a
Updated Full Year and Second Quarter 2026 Guidance
The data center market continues to demonstrate robust momentum, supported by strong underlying demand fundamentals. Vertiv is further accelerating capacity expansion and strategic investments to be well positioned to meet this demand and capture market share.
Second Quarter 2026 Guidance | |
Net sales | |
Organic net sales growth(2) | |
Adjusted operating profit(1) | |
Adjusted operating margin(2) | |
Adjusted diluted EPS(1) | |
Adjusted diluted EPS growth(2) | |
Full Year 2026 Guidance | |
Net sales | |
Organic net sales growth(2) | |
Adjusted operating profit(1) | |
Adjusted operating margin(2) | |
Adjusted diluted EPS(1) | |
Adjusted diluted EPS growth(2) | |
Adjusted free cash flow(2) | |
(1) | This release contains certain non-GAAP metrics. For reconciliations to the relevant GAAP measures and an explanation of the non-GAAP measures and reasons for their use, please refer to sections of this release entitled "Non-GAAP Financial Measures" and "Reconciliation of GAAP and non-GAAP Financial Measures." |
(2) | This is a forward-looking non-GAAP financial measure that cannot be reconciled without unreasonable efforts for those reasons set forth under "Non-GAAP Financial Measures" of this release. |
First Quarter 2026 Earnings Conference Call
Vertiv's management team will discuss the Company's results during a conference call on Wednesday, April 22, starting at 11 a.m. Eastern Time. The call will contain forward-looking statements and other material information regarding Vertiv's financial and operating results. A webcast of the live conference call will be available for interested parties to listen to by going to the Investor Relations section of the Company's website at investors.vertiv.com. A slide presentation will be available before the call and will be posted to the website, also at investors.vertiv.com. A replay of the conference call will also be available for 30 days following the webcast.
About Vertiv Holdings Co
Vertiv (NYSE: VRT) brings together hardware, software, analytics and ongoing services to enable its customers' vital applications to run continuously, perform optimally and grow with their business needs. Vertiv solves the most important challenges facing today's data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Headquartered in
Category: Financial News
Non-GAAP Financial Measures
Financial information included in this release has been prepared in accordance with Generally Accepted Accounting Principles ("GAAP"). Vertiv has included certain non-GAAP financial measures in this news release, as indicated above, that may not be directly comparable to other similarly titled measures used by other companies and therefore may not be comparable among companies. These non-GAAP financial measures include organic net sales growth (including on a segment basis), adjusted operating profit, adjusted operating margin, adjusted diluted EPS and adjusted free cash flow, which management believes provides investors with useful supplemental information to evaluate the Company's ongoing operations and to compare with past and future periods. Management also uses certain non-GAAP measures internally for forecasting, budgeting and measuring its operating performance. These measures should be viewed as supplementing, and not as an alternative or substitute for, the Company's financial results prepared in accordance with GAAP. Pursuant to the requirements of Regulation G, Vertiv has provided reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures.
Information reconciling certain forward-looking GAAP measures to non-GAAP measures related to second quarter and full-year 2026 guidance, including organic net sales growth, adjusted free cash flow and adjusted operating margin, is not available without unreasonable effort due to high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations. For those reasons, we are unable to compute the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.
See "Reconciliation of GAAP and Non-GAAP Financial Measures" in this release for Vertiv's reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures.
Cautionary Note Concerning Forward-Looking Statements
This news release, and other statements that Vertiv may make in connection therewith, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to Vertiv's future financial or business performance, strategies or expectations, and as such are not historical facts. This includes, without limitation, statements regarding Vertiv's financial position, capital structure, indebtedness, business strategy and plans and objectives of Vertiv management for future operations, as well as statements regarding growth, anticipated demand for our products and services and our business prospects during 2026, as well as expected impacts from our pricing actions, and our guidance for second quarter and full year 2026 and statements regarding tariffs, global trade conflict and any actions we may take in response thereto. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. Vertiv cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this news release, words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "strive," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this release are based on current expectations and beliefs concerning future developments and their potential effects on Vertiv. There can be no assurance that future developments affecting Vertiv will be those that Vertiv has anticipated. Vertiv undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond Vertiv's control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Vertiv has previously disclosed risk factors in its Securities and Exchange Commission ("SEC") reports, including those set forth in the Vertiv 2025 Annual Report on Form 10-K filed with the SEC on February 13, 2026. These risk factors and those identified elsewhere in this release, among others, could cause actual results to differ materially from historical performance and include, but are not limited to: risks relating to the continued growth of our customers' markets; long sales cycles for certain Vertiv products and solutions as well as unpredictable placing or cancelling of customer orders; failure to realize sales expected from our backlog of orders and contracts; disruption of or consolidation in our customer's markets or categorical shifts in customer technology spending; less leverage with large customer contract terms; failure to mitigate risks associated with long-term fixed price contracts; competition in the industry in which we operate; failure to obtain performance and other guarantees from financial institutions; risks associated with governmental contracts; failure to properly manage production cost changes and supply; failure to anticipate market change and competition in the infrastructure technologies; risks associated with information technology disruption or cyber-security incidents; risks associated with the implementation and enhancement of information systems; failure to realize the expected benefit from any rationalization, restructuring and improvement efforts; disruption of, or changes in, Vertiv's independent sales representatives, distributors and original equipment manufacturers; increase of variability in our effective tax rate costs or liabilities associated with product liability due to global operations subjecting us to income and other taxes in the
For investor inquiries, please contact:
Lynne Maxeiner
Vice President, Global Treasury & Investor Relations
Vertiv
E: lynne.maxeiner@vertiv.com
For media inquiries, please contact:
Ruder Finn for Vertiv
E: Vertiv@ruderfinn.com
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) Vertiv Holdings Co (Dollars in millions except for per share data) | |||
Three months ended March 31, 2026 | Three months ended March 31, 2025 | ||
Net sales | |||
Net sales - products | $ 2,135.8 | $ 1,649.7 | |
Net sales - services | 513.7 | 386.3 | |
Net sales | 2,649.5 | 2,036.0 | |
Costs and expenses | |||
Cost of sales - products | 1,348.4 | 1,112.1 | |
Cost of sales - services | 301.4 | 237.4 | |
Cost of sales | 1,649.8 | 1,349.5 | |
Operating expenses | |||
Selling, general and administrative expenses | 456.7 | 346.3 | |
Amortization of intangibles | 77.6 | 46.0 | |
Restructuring costs | (4.9) | 1.1 | |
Foreign currency (gain) loss, net | (1.6) | 2.6 | |
Other operating expense (income) | 31.8 | (0.2) | |
Operating profit (loss) | 440.1 | 290.7 | |
Interest expense (income), net | (4.4) | 25.3 | |
Loss on extinguishment of debt | 6.2 | — | |
Income (loss) before income taxes | 438.3 | 265.4 | |
Income tax expense | 48.2 | 100.9 | |
Net income (loss) | $ 390.1 | $ 164.5 | |
Earnings (loss) per share: | |||
Basic | $ 1.02 | $ 0.43 | |
Diluted | $ 0.99 | $ 0.42 | |
Weighted-average shares outstanding: | |||
Basic | 382,921,496 | 380,845,511 | |
Diluted | 392,128,170 | 390,109,650 | |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS Vertiv Holdings Co (Dollars in millions) | |||
March 31, 2026 | December 31, 2025 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 2,150.6 | $ 1,728.4 | |
Short-term investments | 349.9 | 99.5 | |
Accounts receivable, less allowances of | 3,148.7 | 3,109.0 | |
Inventories | 1,834.6 | 1,456.5 | |
Other current assets | 500.8 | 426.1 | |
Total current assets | 7,984.6 | 6,819.5 | |
Property, plant and equipment, net | 997.5 | 921.8 | |
Other assets: | |||
Goodwill | 2,023.7 | 2,033.7 | |
Other intangible assets, net | 1,806.0 | 1,894.8 | |
Deferred income taxes | 177.8 | 179.6 | |
Right-of-use assets, net | 330.8 | 303.0 | |
Other | 79.7 | 60.0 | |
Total other assets | 4,418.0 | 4,471.1 | |
Total assets | $ 13,400.1 | $ 12,212.4 | |
LIABILITIES AND EQUITY | |||
Current liabilities: | |||
Current portion of long-term debt | $ — | $ 20.9 | |
Accounts payable | 1,951.7 | 1,756.4 | |
Deferred revenue | 2,461.8 | 1,814.7 | |
Accrued expenses and other liabilities | 856.2 | 771.6 | |
Income taxes | 73.5 | 43.4 | |
Total current liabilities | 5,343.2 | 4,407.0 | |
Long-term debt, net | 2,922.2 | 2,892.1 | |
Deferred income taxes | 221.2 | 232.8 | |
Long-term lease liabilities | 270.4 | 245.2 | |
Other long-term liabilities | 398.2 | 494.0 | |
Total liabilities | 9,155.2 | 8,271.1 | |
Equity | |||
Preferred stock, | — | — | |
Common stock, | — | — | |
Additional paid-in capital | 2,927.0 | 2,895.2 | |
Retained earnings | 1,394.1 | 1,027.9 | |
Accumulated other comprehensive (loss) income | (76.2) | 18.2 | |
Total equity | 4,244.9 | 3,941.3 | |
Total liabilities and equity | $ 13,400.1 | $ 12,212.4 | |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Vertiv Holdings Co (Dollars in millions) | |||
Three months ended March 31, 2026 | Three months ended March 31, 2025 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ 390.1 | $ 164.5 | |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | |||
Depreciation | 27.5 | 22.9 | |
Amortization | 80.2 | 48.7 | |
Deferred income taxes | (28.2) | 33.3 | |
Amortization of debt discount and issuance costs | 1.6 | 2.2 | |
Stock-based compensation | 17.0 | 11.2 | |
Changes in operating working capital | 227.8 | (4.8) | |
Change in fair value of contingent consideration | 33.2 | — | |
Other | 17.6 | 25.3 | |
Net cash provided by (used for) operating activities | 766.8 | 303.3 | |
Cash flows from investing activities: | |||
Capital expenditures | (112.6) | (36.5) | |
Investments in capitalized software | (1.4) | (2.3) | |
Purchase of short-term investments | (348.4) | — | |
Proceeds from maturities of short-term investments | 100.0 | — | |
Investment in affiliates | (13.9) | — | |
Acquisition of businesses, net of cash acquired | (0.4) | — | |
Net cash provided by (used for) investing activities | (376.7) | (38.8) | |
Cash flows from financing activities: | |||
Proceeds from the issuance of long-term debt | 2,100.0 | — | |
Repayment of long-term debt | (2,076.1) | (5.3) | |
Dividend payment | (23.9) | (14.2) | |
Exercise of employee stock options | 23.5 | 1.3 | |
Employee taxes paid from shares withheld | (11.6) | (6.7) | |
Net cash provided by (used for) financing activities | 11.9 | (24.9) | |
Effect of exchange rate changes on cash and cash equivalents | (0.6) | 4.3 | |
Increase (decrease) in cash, cash equivalents and restricted cash | 401.4 | 243.9 | |
Beginning cash, cash equivalents and restricted cash | 1,789.8 | 1,232.2 | |
Ending cash, cash equivalents and restricted cash | $ 2,191.2 | $ 1,476.1 | |
Changes in operating working capital | |||
Accounts receivable | $ (57.7) | $ 81.6 | |
Inventories | (384.2) | (128.6) | |
Other current assets | (88.5) | (29.5) | |
Accounts payable | 202.8 | 86.5 | |
Deferred revenue | 651.2 | 23.4 | |
Accrued expenses and other liabilities | (95.4) | (79.6) | |
Income taxes | (0.4) | 41.4 | |
Total changes in operating working capital | $ 227.8 | $ (4.8) | |
Reconciliation of GAAP and non-GAAP Financial Measures
To supplement this news release, we have included certain non-GAAP financial measures in the format of performance metrics. Management believes these non-GAAP financial measures provide investors with additional meaningful financial information that should be considered when assessing our underlying business performance and trends. Further, management believes these non-GAAP financial measures also enhance investors' ability to compare period-to-period financial results. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the company's reported results prepared in accordance with GAAP. Our non-GAAP financial measures do not represent a comprehensive basis of accounting. Therefore, our non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of each of these non-GAAP financial measures to GAAP information are also included. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions and in evaluating the company's performance. Disclosing these non-GAAP financial measures allows investors and management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance.
Vertiv's non-GAAP financial measures include:
- Adjusted operating profit (loss), which represents operating profit (loss), adjusted to exclude amortization of intangibles, and contingent consideration;
- Adjusted operating margin, which represents adjusted operating profit (loss) divided by net sales;
- Organic net sales growth, which represents the change in net sales adjusted to exclude the impacts of foreign currency exchange rate and acquisitions;
- Adjusted free cash flow, which represents net cash provided by (used for) operating activities adjusted to exclude capital expenditures and investments in capitalized software; and
- Adjusted diluted EPS, which represents diluted earnings per share adjusted to exclude amortization of intangibles, contingent consideration, and the costs related to the March 3, 2026 repayment of the Term Loan Credit Agreement and the associated interest rate swaps being settled.
Regional Segment Results
Three months ended March 31, | |||||||||
2026 | 2025 | Δ | Δ% | Organic | |||||
Net sales(1) | |||||||||
AMER | $ 629.1 | 53.1 % | 44.3 % | ||||||
APAC | 513.7 | 447.2 | 66.5 | 14.9 % | 12.0 % | ||||
EMEA | 321.4 | 403.5 | (82.1) | (20.3) % | (29.4) % | ||||
Total | $ 613.5 | 30.1 % | 22.6 % | ||||||
Adjusted operating profit (loss)(3) | |||||||||
AMER | $ 490.2 | $ 259.7 | $ 230.5 | 88.8 % | |||||
APAC | 67.4 | 45.7 | 21.7 | 47.5 % | |||||
EMEA | 53.5 | 78.7 | (25.2) | (32.0) % | |||||
Corporate(4) | (60.2) | (47.4) | (12.8) | 27.0 % | |||||
Total | $ 550.9 | $ 336.7 | $ 214.2 | 63.6 % | |||||
Adjusted operating margins(5) | |||||||||
AMER | 27.0 % | 21.9 % | 5.1 % | ||||||
APAC | 13.1 % | 10.2 % | 2.9 % | ||||||
EMEA | 16.6 % | 19.5 % | (2.9) % | ||||||
Vertiv | 20.8 % | 16.5 % | 4.3 % | ||||||
(1) | Segment net sales are presented excluding intercompany sales. |
(2) | Organic basis is adjusted to exclude foreign currency exchange rate and the change in acquisition sales impact. |
(3) | Adjusted operating profit (loss) is only adjusted at the Corporate segment. There are no adjustments at the reportable segment level between operating profit (loss) and adjusted operating profit (loss). |
(4) | Corporate costs consist of headquarters management costs, asset impairments, and costs that support centralized global functions including Finance, Treasury, Risk Management, Strategy & Marketing, Legal, and Human Resources. |
(5) | Adjusted operating margins calculated as adjusted operating profit (loss) divided by net sales. |
Sales by product and service offering
Three months ended March 31, | |||||||
2026 | 2025 | Δ | Δ% | ||||
Products | $ 1,475.9 | $ 958.3 | $ 517.6 | 54.0 % | |||
Services & spares | 338.5 | 227.0 | 111.5 | 49.1 % | |||
$ 1,814.4 | $ 1,185.3 | $ 629.1 | 53.1 % | ||||
Products | $ 381.1 | $ 333.8 | $ 47.3 | 14.2 % | |||
Services & spares | 132.6 | 113.4 | 19.2 | 16.9 % | |||
$ 513.7 | $ 447.2 | $ 66.5 | 14.9 % | ||||
Products | $ 234.2 | $ 319.0 | $ (84.8) | (26.6) % | |||
Services & spares | 87.2 | 84.5 | 2.7 | 3.2 % | |||
$ 321.4 | $ 403.5 | $ (82.1) | (20.3) % | ||||
Total: | |||||||
Products | $ 2,091.2 | $ 1,611.1 | $ 480.1 | 29.8 % | |||
Services & spares | 558.3 | 424.9 | 133.4 | 31.4 % | |||
$ 2,649.5 | $ 2,036.0 | $ 613.5 | 30.1 % | ||||
Organic growth by product and service offering
Three months ended March 31, 2026 | |||||||||
Net Sales Δ | FX Δ | Acquisition Δ(1) | Organic growth | Organic Δ%(2) | |||||
Products | $ 517.6 | $ (5.5) | $ (34.2) | $ 477.9 | 49.9 % | ||||
Services & spares | 111.5 | (2.0) | (61.8) | 47.7 | 21.0 % | ||||
$ 629.1 | $ (7.5) | $ (96.0) | $ 525.6 | 44.3 % | |||||
Products | $ 47.3 | $ (10.5) | $ — | $ 36.8 | 11.0 % | ||||
Services & spares | 19.2 | (2.5) | — | 16.7 | 14.7 % | ||||
$ 66.5 | $ (13.0) | $ — | $ 53.5 | 12.0 % | |||||
Products | $ (84.8) | $ (27.6) | $ (0.4) | $ (112.8) | (35.4) % | ||||
Services & spares | 2.7 | (8.5) | (0.2) | (6.0) | (7.1) % | ||||
$ (82.1) | $ (36.1) | $ (0.6) | $ (118.8) | (29.4) % | |||||
Total: | |||||||||
Products | $ 480.1 | $ (43.6) | $ (34.6) | $ 401.9 | 24.9 % | ||||
Services & spares | 133.4 | (13.0) | (62.0) | 58.4 | 13.7 % | ||||
$ 613.5 | $ (56.6) | $ (96.6) | $ 460.3 | 22.6 % | |||||
(1) | The change in acquisition sales includes sales for the three months ended March 31, 2026 for acquisitions completed in the year ended December 31, 2025. |
(2) | Organic growth percentage change is calculated as organic growth divided by net sales for the three months ended March 31, 2025. |
Segment operating profit (loss)
Operating profit (loss) | Three months ended March 31, 2026 | Three months ended March 31, 2025 | |
$ 490.2 | $ 259.7 | ||
67.4 | 45.7 | ||
53.5 | 78.7 | ||
Total reportable segments | 611.1 | 384.1 | |
Foreign currency gain (loss) | 1.6 | (2.6) | |
Corporate | (95.0) | (44.8) | |
Total corporate and other | (93.4) | (47.4) | |
Amortization of intangibles | (77.6) | (46.0) | |
Operating profit (loss) | $ 440.1 | $ 290.7 |
Reconciliation of net cash provided by (used for) operating activities to adjusted free cash flow
Three months ended March 31, 2026 | Three months ended March 31, 2025 | ||
Net cash provided by (used for) operating activities | $ 766.8 | $ 303.3 | |
Capital expenditures | (112.6) | (36.5) | |
Investments in capitalized software | (1.4) | (2.3) | |
Adjusted free cash flow | $ 652.8 | $ 264.5 |
Reconciliation from operating profit (loss) to adjusted operating profit (loss)
Three months ended March 31, 2026 | Three months ended March 31, 2025 | ||
Operating profit (loss) | $ 440.1 | $ 290.7 | |
Amortization of intangibles | 77.6 | 46.0 | |
Contingent consideration | 33.2 | — | |
Adjusted operating profit (loss) | $ 550.9 | $ 336.7 |
Reconciliation from operating margin to adjusted operating margin
Three months ended March 31, 2026 | Three months ended March 31, 2025 | Δ | |||
Vertiv net sales | $ 2,649.5 | $ 2,036.0 | $ 613.5 | ||
Vertiv operating profit (loss) | 440.1 | 290.7 | 149.4 | ||
Vertiv operating margin | 16.6 % | 14.3 % | 2.3 % | ||
Amortization of intangibles | $ 77.6 | $ 46.0 | $ 31.6 | ||
Contingent consideration | 33.2 | — | 33.2 | ||
Vertiv adjusted operating profit (loss) | 550.9 | 336.7 | 214.2 | ||
Vertiv adjusted operating margin | 20.8 % | 16.5 % | 4.3 % |
Reconciliation of Diluted EPS to Adjusted Diluted EPS
Three months ended March 31, 2026 | ||||||||||||
Operating profit | Interest expense | Loss on | Income tax | Net income (loss) | Diluted EPS(1) | |||||||
GAAP | $ 440.1 | $ (4.4) | $ 6.2 | $ 48.2 | $ 390.1 | $ 0.99 | ||||||
Amortization of intangibles | 77.6 | — | — | — | 77.6 | 0.21 | ||||||
Contingent consideration(2) | 33.2 | — | — | — | 33.2 | 0.08 | ||||||
Term loan credit agreement repayment(3) | — | 22.9 | (6.2) | 25.6 | (42.3) | (0.11) | ||||||
Non-GAAP adjusted | $ 550.9 | $ 18.5 | $ — | $ 73.8 | $ 458.6 | $ 1.17 | ||||||
Diluted shares (in millions) | 392.1 | |||||||||||
(1) | Diluted EPS and adjusted diluted EPS is calculated using 392.1 million shares (includes 382.9 million basic shares and 9.2 million potential dilutive equity awards). |
(2) | Contingent consideration associated with the PurgeRite acquisition. |
(3) | Costs associated with the March 3, 2026 repayment of the Term loan credit agreement, the gain recognized in "Interest expense (income), net" and the related tax impact associated with the interest rate swaps being settled. |
Three months ended March 31, 2025 | |||||||||
Operating profit (loss) | Interest expense | Income tax expense | Net income (loss) | Diluted EPS(1) | |||||
GAAP | $ 290.7 | $ 25.3 | $ 100.9 | $ 164.5 | $ 0.42 | ||||
Amortization of intangibles | 46.0 | — | — | 46.0 | 0.12 | ||||
Non-recurring tax adjustment, net(2) | — | — | (39.5) | 39.5 | 0.10 | ||||
Non-GAAP adjusted | $ 336.7 | $ 25.3 | $ 61.4 | $ 250.0 | $ 0.64 | ||||
Diluted shares (in millions) | 390.1 | ||||||||
(1) | Diluted EPS and adjusted diluted EPS is calculated using 390.1 million shares (includes 380.8 million basic shares and 9.3 million potential dilutive equity awards). |
(2) | Nonrecurring tax adjustment of |
Vertiv Holdings Co 2026 Adjusted Guidance Reconciliation of Diluted EPS to Adjusted Diluted EPS(1)
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Second Quarter 2026 | |||||||||||
Operating profit | Interest expense | Income tax expense | Net income (loss) | Diluted EPS(2) | |||||||
GAAP | $ 639.6 | $ 19.8 | $ 142.6 | $ 477.2 | $ 1.22 | ||||||
Amortization of intangibles | 70.0 | — | — | 70.0 | 0.18 | ||||||
Non-GAAP adjusted | $ 709.6 | $ 19.8 | $ 142.6 | $ 547.2 | $ 1.40 | ||||||
Diluted shares (in millions) | 392.0 | ||||||||||
Full Year 2026 | |||||||||||
Operating profit (loss) | Interest expense | Loss on | Income tax | Net income (loss) | Diluted EPS(2) | ||||||
GAAP | $ 2,882.6 | $ 68.4 | $ 6.2 | $ 595.0 | $ 2,213.0 | $ 5.65 | |||||
Amortization of intangibles | 284.2 | — | — | — | 284.2 | 0.73 | |||||
Contingent consideration(3) | 33.2 | — | — | — | 33.2 | 0.08 | |||||
Term loan credit agreement repayment(4) | — | 22.9 | (6.2) | 25.6 | (42.3) | (0.11) | |||||
Non-GAAP adjusted | $ 3,200.0 | $ 91.3 | $ — | $ 620.6 | $ 2,488.1 | $ 6.35 | |||||
Diluted shares (in millions) | 392.0 | ||||||||||
(1) | Information reconciling certain forward-looking GAAP measures to non-GAAP measures related to FY 2026 guidance, including organic net sales growth, adjusted operating margin and adjusted free cash flow, is not available without unreasonable effort due to high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations. For the same reasons, we are unable to compute the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results. |
(2) | Diluted EPS and adjusted diluted EPS based on 392.0 million shares (includes 384.0 million basic shares and 8.0 million potential dilutive equity awards). |
(3) | Contingent consideration associated with the PurgeRite acquisition. |
(4) | Costs associated with the March 3, 2026 repayment of the Term loan credit agreement, the gain recognized in "Interest expense (income), net" and the related tax impact associated with the interest rate swaps being settled. |
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SOURCE Vertiv Holdings Co