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Why Is Vertiv (VRT) Up 18.4% Since Last Earnings Report?
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A month has gone by since the last earnings report for Vertiv Holdings Co. (VRT - Free Report) . Shares have added about 18.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Vertiv due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Vertiv Q2 Earnings Beat Estimates, Net Sales Rise Year over Year
Vertiv Holdings delivered second-quarter 2026 adjusted earnings of $1.52 per share, up 60% year over year. The results beat the Zacks Consensus Estimate by 6.29%, supported by higher sales volume, operating productivity and margin expansion.
Net sales increased 24.1% year over year to $3.27 billion but missed the consensus estimate by 3.41%. Organic sales rose 18%, while acquisitions and favorable foreign exchange contributed 5% and 1%, respectively.
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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
Currently, Vertiv has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Vertiv has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Vertiv belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, ServiceNow (NOW - Free Report) , has gained 25.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
ServiceNow reported revenues of $3.99 billion in the last reported quarter, representing a year-over-year change of +24%. EPS of $0.90 for the same period compares with $0.82 a year ago.
ServiceNow is expected to post earnings of $1.03 per share for the current quarter, representing a year-over-year change of +7.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
ServiceNow has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
View the Zacks #1 Rank List
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Why Is Vertiv (VRT) Up 18.4% Since Last Earnings Report?
A month has gone by since the last earnings report for Vertiv Holdings Co. (VRT - Free Report) . Shares have added about 18.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Vertiv due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Vertiv Q2 Earnings Beat Estimates, Net Sales Rise Year over Year
Vertiv Holdings delivered second-quarter 2026 adjusted earnings of $1.52 per share, up 60% year over year. The results beat the Zacks Consensus Estimate by 6.29%, supported by higher sales volume, operating productivity and margin expansion.
Net sales increased 24.1% year over year to $3.27 billion but missed the consensus estimate by 3.41%. Organic sales rose 18%, while acquisitions and favorable foreign exchange contributed 5% and 1%, respectively.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
Currently, Vertiv has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Vertiv has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Vertiv belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, ServiceNow (NOW - Free Report) , has gained 25.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
ServiceNow reported revenues of $3.99 billion in the last reported quarter, representing a year-over-year change of +24%. EPS of $0.90 for the same period compares with $0.82 a year ago.
ServiceNow is expected to post earnings of $1.03 per share for the current quarter, representing a year-over-year change of +7.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
ServiceNow has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.