10-Q · July 29, 2026
Vertiv posted a strong Q2: revenue increased 24.1% YoY to $3.2743B, gross margin expanded to 37.7% from 34.0%, and calculated operating margin reached 19.5% versus 16.8% a year ago. Americas and Asia Pacific were the…
Earnings analysis · 10-Q
VRT earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
Vertiv delivered a very strong Q3, with revenue of $4,312.8 million and diluted EPS of $2.21, up sharply year over year and ahead of consensus by 14.6% and 21.4%, respectively. Adjusted operating margin reached 25.2%,…
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Vertiv delivered a very strong Q3, with revenue of $4,312.8 million and diluted EPS of $2.21, up sharply year over year and ahead of consensus by 14.6% and 21.4%, respectively. Adjusted operating margin reached 25.2%, while adjusted free cash flow was $652.2 million, although cash flow declined sequentially from $928 million. Management raised supplied full-year 2026 guidance to $14.45-$14.85 billion of revenue and $7.10-$7.20 of adjusted diluted EPS; the principal incremental filing risk is tighter focus on debt-covenant compliance, including a 4.00:1.00 leverage limit.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.21
What stood out
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Revenue growth accelerated materially
Q3 revenue was $4,312.8 million, up 31.9% from $3,270 million in Q2 2026 and 61.0% from $2,680 million in Q3 2025. Revenue also exceeded the $3,761.9 million consensus estimate by 14.6%.
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EPS substantially exceeded expectations
Diluted EPS was $2.21 versus $1.27 in Q2 2026 and $1.02 in Q3 2025, increases of 74.0% and 116.7%, respectively. EPS exceeded the $1.82 consensus estimate by 21.4%.
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Adjusted operating leverage expanded
Adjusted operating margin was 25.2%, according to the supplied earnings update, versus 19.6% in Q2 2026 and 19.3% in Q3 2025, indicating significant operating leverage.
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Cash generation remained strong
Adjusted free cash flow was $652.2 million, down from $928 million in Q2 2026 but up from $462 million in Q3 2025. The quarter therefore remained meaningfully cash generative despite sequential seasonality or working-capital investment.
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Acquisition platform expanded
The company completed four acquisitions between December 4, 2025 and June 11, 2026: PurgeRite, BMarko Structures, Strategic Thermal Labs and ThermoKey. These acquisitions broadened the operating platform, although the acquired entities remain excluded from internal-control assessment during their first year of integration.
What to watch
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Debt covenant breach exposure
The newly disclosed debt-covenant risk includes a maximum Consolidated Leverage Ratio of 4.00:1.00, with an optional step-up to 4.50:1.00 for four consecutive fiscal quarters following an acquisition involving at least $750 million of cash consideration. A breach could trigger defaults, acceleration of debt and loss of revolver availability.
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Unresolved securities litigation
The securities class action filed on May 3, 2022 remains unresolved because the motion to dismiss the Sections 10(b) and 20(a) claims is still pending. The related derivative actions were consolidated on February 13, 2025 and remain stayed; the company states it cannot predict the outcome or potential cost.
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Acquisition integration controls
Internal-control integration remains an execution consideration because four recent acquisitions were excluded from the September 30, 2026 assessment under the first-year acquisition provision. The company nevertheless concluded that disclosure controls were effective as of September 30, 2026.
Management's outlook
The supplied earnings update states that full-year 2026 guidance was raised; adjusted diluted EPS guidance is $7.10-$7.20, midpoint revenue guidance is $14,650 million, and fourth-quarter adjusted diluted EPS guidance is $2.22-$2.28. The extracted 10-Q text does not include the MD&A outlook section.
Earlier filings 4
10-Q · April 22, 2026
Vertiv reported Q1 2026 net sales of $2,649.5 million, up $613.5 million (+30.1%) versus Q1 2025, with gross margin expanding to ~37.7% and operating profit of $440.1 million. Diluted EPS was $0.99, up $0.57 versus Q1…
10-K · February 13, 2026
Vertiv reports strong 2025 results driven by data-center demand: net sales rose to $10,229.9 million in 2025 from $8,011.8 million in 2024 (a ~27.7% increase) and backlog more than doubled to $15.0 billion as of…
10-Q · April 23, 2025
Vertiv reported a strong Q1 with net sales of $2,036.0M (up $396.9M or 24.2% YoY), operating profit of $290.7M, and net income of $164.5M reversing the prior-year loss. Operating cash flow was robust at $303.3M,…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.