Third Quarter 2026
Filed Oct 28, 2026Vertiv Reports Strong Third Quarter 2026 with Net Sales Growth of 61%, Organic Orders Growth over 100% and Diluted EPS Growth of 91% (Adjusted Diluted EPS Growth of 78%); Raises Full Year 2026 Guidance Across All Key Metrics
Third-quarter net sales grew 61.2%, adjusted operating profit grew 82.5%, diluted EPS rose to $1.95 from $1.02, and the company raised full-year net sales guidance by $650 million while guiding to continued high growth and adjusted operating margins.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net salesGAAP | $4.31B | – | 61.2 % |
| Q3 2026 net sales - productsGAAP | $3.64B | – | – |
| Q3 2026 net sales - servicesGAAP | $675.7M | – | – |
| Q3 2026 organic net sales growthnon-GAAP | 55.0 % | – | 55.0 % |
| Q3 2026 cost of salesGAAP | $2.67B | – | – |
| Q3 2026 selling, general and administrative expensesGAAP | $556.9M | – | – |
| Q3 2026 operating profitGAAP | $983.8M | – | 90% |
| Q3 2026 operating marginGAAP | 22.8 % | – | 3.5 % |
| Q3 2026 adjusted operating profitnon-GAAP | $1.09B | – | 82.5 % |
| Q3 2026 adjusted operating marginnon-GAAP | 25.2 % | – | 2.9 % |
| Q3 2026 net incomeGAAP | $764.5M | – | – |
| Q3 2026 basic EPSGAAP | $ 1.99 | – | – |
| Q3 2026 diluted EPSGAAP | $ 1.95 | – | 91% |
| Q3 2026 adjusted diluted EPSnon-GAAP | $ 2.21 | – | 78% |
| Q3 2026 net cash provided by operating activitiesGAAP | $794M | – | 64% |
| Q3 2026 capital expendituresGAAP | $139.1M | – | – |
| Q3 2026 adjusted free cash flownon-GAAP | $652.2M | – | 50% |
| Nine months ended September 30, 2026 net salesGAAP | $10.24B | – | 39.3 % |
| Nine months ended September 30, 2026 operating profitGAAP | $2.06B | – | – |
| Nine months ended September 30, 2026 adjusted operating profitnon-GAAP | $2.38B | – | 67.2 % |
| Nine months ended September 30, 2026 net incomeGAAP | $1.65B | – | – |
| Nine months ended September 30, 2026 diluted EPSGAAP | $ 4.21 | – | – |
| Nine months ended September 30, 2026 adjusted diluted EPSnon-GAAP | $ 4.91 | – | – |
| Nine months ended September 30, 2026 net cash provided by operating activitiesGAAP | $2.66B | – | – |
| Nine months ended September 30, 2026 adjusted free cash flownon-GAAP | $2.23B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| AMEROrganic net sales growth was 66.2 %, with products up 77.1 % and services & spares up 62.0 %. | $2.99B | – | 74.5 % |
| APACOrganic net sales growth was 48.3 %, with products up 59.6 % and services & spares up 20.1 %. | $779.3M | – | 49.9 % |
| EMEAOrganic net sales growth was 19.3 %, with products up 26.7 % and services & spares up 8.5 %. | $544.7M | – | 22.8 % |
Fourth Quarter 2026 and Full Year 2026 outlook
- RevenueFourth Quarter 2026 net sales: $4,313M - $4,513M; Full Year 2026 net sales: $14,450M - $14,850M
- NoteFourth Quarter 2026 organic net sales growth: 49% - 51%
- NoteFourth Quarter 2026 adjusted operating profit: $1,118M - $1,158M
- NoteFourth Quarter 2026 adjusted operating margin: 25.3% - 26.3%
- NoteFourth Quarter 2026 diluted EPS midpoint: $2.08
- NoteFourth Quarter 2026 adjusted diluted EPS: $2.22 - $2.28
- NoteFourth Quarter 2026 adjusted diluted EPS growth: 63% - 67%
- NoteFull Year 2026 organic net sales growth: 37% - 39%
- NoteFull Year 2026 adjusted operating profit: $3,475M - $3,555M
- NoteFull Year 2026 adjusted operating margin: 23.5% - 24.5%
- NoteFull Year 2026 diluted EPS midpoint: $6.29
- NoteFull Year 2026 adjusted diluted EPS: $7.10 - $7.20
- NoteFull Year 2026 adjusted diluted EPS growth: 69% - 71%
- NoteFull Year 2026 adjusted free cash flow: $2,600M - $2,800M
- NoteCapital expenditures for full year 2026 are still anticipated at approximately 4.0% of revenue.
Capital returns
- Dividend payment: $ 24.0 million for the three months ended September 30, 2026.
- Dividend payment: $ 71.8 million for the nine months ended September 30, 2026.
What drove it
- Third-quarter net sales reflected 55% organic sales growth and approximately 6% contribution from acquisitions.
- Growth was broad-based across all regions, with the Americas up 75%, APAC up 50%, and EMEA up 23%.
- Adjusted operating margin expansion was driven by operational leverage on higher sales and manufacturing productivity, partially offset by mix impacts and continued growth investments.
- Management cited strong demand visibility, ongoing capacity investments, disciplined execution, and more than 100% organic orders growth year over year.
- Adjusted free cash flow was driven by higher adjusted operating profit, partially offset by increased working capital and higher capital expenditures to support growth.
Concerns
- Adjusted operating margin was partially offset by mix impacts and continued growth investments.
- Third-quarter working-capital changes were $ (138.3) million, including $ (631.9) million in accounts receivable and $ (766.9) million in inventories.
- EMEA organic net sales growth was 19.3 %, below AMER at 66.2 % and APAC at 48.3 %.
- The release identifies risks related to long sales cycles, unpredictable placing or cancelling of customer orders, backlog conversion, long-term fixed-price contracts, tariffs and global trade conflict, and the timing and consummation of acquisitions.
What to watch
- Fourth Quarter 2026 net sales guidance of $4,313M - $4,513M and organic net sales growth guidance of 49% - 51%.
- Fourth Quarter 2026 adjusted operating margin guidance of 25.3% - 26.3%.
- Full Year 2026 adjusted free cash flow guidance of $2,600M - $2,800M.
- Capital expenditures anticipated at approximately 4.0% of revenue for full year 2026.
- The progression of working capital, capacity investments, and demand across AMER, APAC, and EMEA.
Balance sheet and cash flow
- Cash and cash equivalents at September 30, 2026: $ 3,512.9 million.
- Short-term investments at September 30, 2026: $ 198.8 million.
- Long-term debt, net at September 30, 2026: $ 2,925.1 million.
- Current portion of long-term debt at September 30, 2026: $ 3.4 million.
- Vertiv stated that liquidity increased to $6.2 billion in the third quarter and that it maintained a net cash position.
- Ending cash, cash equivalents and restricted cash: $ 3,583.2 million.
- Nine-month capital expenditures: $ 425.0 million.
- Nine-month investments in capitalized software: $ 5.3 million.
Analysis
Vertiv delivered a sharply higher third quarter, with GAAP net sales of $ 4,312.8 million versus $ 2,675.8 million and 55.0 % organic net sales growth. Products were $ 3,637.1 million and services were $ 675.7 million. All reported regions expanded, led by AMER revenue growth of 74.5 %, followed by APAC at 49.9 % and EMEA at 22.8 %. Management attributed the growth to broad-based global demand, capacity investments and disciplined execution, and highlighted more than 100% organic orders growth year over year.
Profitability increased faster than sales. GAAP operating profit rose to $ 983.8 million from $ 516.7 million, while adjusted operating profit reached $ 1,086.9 million from $ 595.6 million. Adjusted operating margin was 25.2 % compared with 22.3 %, supported by operating leverage and manufacturing productivity. The release identifies mix impacts and continued growth investments as partial offsets. GAAP net income was $ 764.5 million, diluted EPS was $ 1.95, and adjusted diluted EPS was $ 2.21.
Cash generation remained strong despite investment needs. Net cash provided by operating activities was $ 794.0 million and adjusted free cash flow was $ 652.2 million. The company reported $ 139.1 million of quarterly capital expenditures, while noting that higher working capital and capital expenditures partially offset the benefit of higher adjusted operating profit. At September 30, 2026, cash and cash equivalents were $ 3,512.9 million, short-term investments were $ 198.8 million, and long-term debt, net was $ 2,925.1 million. Vertiv also reported $6.2 billion of liquidity and a net cash position.
The company raised full-year net sales guidance by $650 million and now guides to $14,450M - $14,850M of full-year net sales, 37% - 39% organic net sales growth, $3,475M - $3,555M of adjusted operating profit, and 23.5% - 24.5% adjusted operating margin. Fourth-quarter guidance calls for $4,313M - $4,513M of net sales, 49% - 51% organic growth, and a 25.3% - 26.3% adjusted operating margin. The key reported execution points are sustaining demand conversion and regional growth while absorbing elevated working-capital requirements, capacity expansion and capital expenditures anticipated at approximately 4.0% of revenue for full year 2026.
Management, verbatim
We are in the middle of the largest infrastructure buildout and it's accelerating.
Giordano Albertazzi, Chief Executive Officer
Our more than 100% organic orders growth year over year and our overall performance are clear testaments to that.
Giordano Albertazzi, Chief Executive Officer
I believe there is a long runway ahead and the opportunity only gets bigger from here.
Dave Cote, Executive Chairman
Not in the filing
stated, not guessed- Gross profit was not reported as a separate line item.
- Gross margin was not reported.
- A GAAP tax rate was not reported.
- Share repurchases were not reported.
- Prior-quarter comparisons for the reported operating metrics were not provided.
- Previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
- Fourth Quarter 2026 GAAP operating-expense, gross-margin and tax-rate guidance were not provided.
- Full Year 2026 GAAP operating-expense, gross-margin and tax-rate guidance were not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.