Vertiv Holdings Co — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales for the third quarter ended September 30, 2026, reached $4,313 million, a 61% increase compared to $2,676 million in the third quarter of 2025.
• Organic sales growth was 55%, with approximately 6% of total growth attributed to acquisitions.
• Operating profit increased 90% to $984 million from $517 million in the prior year quarter; adjusted operating profit rose 83% to $1,087 million.
• Adjusted operating margin expanded 290 basis points to 25.2% from 22.3% in the third quarter of 2025.
• Diluted EPS grew 91% to $1.95, while adjusted diluted EPS increased 78% to $2.21 compared to the prior year quarter.
• Operating cash flow was $794 million, up 64% year-over-year; adjusted free cash flow was $652 million, up 50%.
• Total assets increased to $18,174.5 million as of September 30, 2026, from $12,212.4 million at December 31, 2025.
• Deferred revenue increased to $4,120.5 million from $1,814.7 million at the end of 2025.
• Net cash position was maintained with liquidity increasing to $6.2 billion in the third quarter.
• Capital expenditures for the full year 2026 are anticipated at approximately 4.0% of revenue.

Guidance and Future Outlook:

• Vertiv raised full-year 2026 net sales guidance by $650 million to a midpoint of $14,650 million, expecting 38% organic sales growth.
• Full-year 2026 adjusted diluted EPS guidance was raised to a midpoint of $7.15, representing 70% growth compared to 2025.
• Fourth quarter 2026 net sales guidance is set at a midpoint of $4,413 million, with expected organic sales growth of 50%.
• Fourth quarter 2026 adjusted diluted EPS guidance is set at a midpoint of $2.25, reflecting 65% growth compared to the prior year quarter.
• Management cites the "largest infrastructure buildout" and accelerating data center demands as key drivers for the raised guidance.

Business Segments and Product Lines:

• Growth was broad-based across all regions: Americas up 75% (66% organic), APAC up 50% (48% organic), and EMEA up 23% (19% organic).
• Product sales grew 65.8% in the third quarter, while services and spares sales grew 41.5%.
• Americas segment net sales were $2,988.8 million with an adjusted operating margin of 29.4%.
• APAC segment net sales were $779.3 million with an adjusted operating margin of 17.0%.
• EMEA segment net sales were $544.7 million with an adjusted operating margin of 28.0%.
• Management noted compressing new product development cycles from years to months and industrializing converged infrastructure.

Market and Competitive Landscape:

• The data center market continues to generate strong, broad-based global demand, validating the depth and duration of the growth cycle.
• Vertiv positions itself as a partner capable of engineering, delivering, scaling, and servicing across the entire lifecycle of critical digital infrastructure.
• The company is expanding capacity and investing in next-generation technology to capture an expanding opportunity set.
• Management stated that the more technology changes, the better it is for Vertiv, with a belief that the opportunity "only gets bigger from here."

Risks and Challenges:

• Forward-looking statements involve risks including long sales cycles, unpredictable customer order placement or cancellation, and failure to realize sales from backlog.
• Risks include competition, failure to mitigate risks associated with long-term fixed-price contracts, and supply chain disruptions.
• Potential impacts from tariffs, global trade conflict, and foreign trade policy are noted.
• Risks related to information technology disruption, cyber-security incidents, and failure to properly manage production costs are disclosed.
• Integration risks associated with acquisitions, including diversion of management time and retention of key employees, are highlighted.
• Fluctuations in foreign currency exchange rates and variability in the effective tax rate are identified as potential impacts on financial results.

Management Commentary and Tone:

• CEO Giordano Albertazzi expressed confidence, stating the company is in the middle of the largest infrastructure buildout which is accelerating.
• Executive Chairman Dave Cote emphasized the company's strategy of investing ahead of the curve and building for scale.
• Management highlighted over 100% organic orders growth year-over-year as a testament to customer preference and execution.
• The tone is highly confident, citing operational leverage, manufacturing productivity, and disciplined execution as drivers for performance.

Other Key Points:

• Vertiv maintains a net cash position and has broadened strategic flexibility with liquidity at $6.2 billion.
• The company continues to invest in capacity expansion and next-generation technology to meet customer needs.
• Adjusted free cash flow for the quarter was driven by higher adjusted operating profit, partially offset by increased working capital and higher capital expenditures.
• The conference call for Q3 2026 results was scheduled for October 28, 2026, at 11 a.m. Eastern Time.
• Vertiv operates in more than 130 countries with a portfolio extending from the cloud to the edge of the network.