second quarter 2026
Filed Jul 29, 2026Vertiv Reports Strong Second Quarter 2026 with Diluted EPS Growth of 53% (Adjusted Diluted EPS Growth of +60%); Raises Full Year 2026 Guidance Across All Key Metrics
Net sales rose 24%, operating profit rose 44%, adjusted operating profit rose 51%, and adjusted diluted EPS rose 60% versus second quarter 2025. The company also generated $1,100 million of operating cash flow, achieved a net cash position, and raised full year 2026 guidance across key metrics.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $3,274 million | – | 24% |
| Organic sales growthnon-GAAP | 18% | – | 18% |
| Acquisitions contribution to net sales growthother | 5% | – | – |
| Favorable foreign currency translation benefit to net sales growthother | 1% | – | – |
| Operating profitGAAP | $638 million | – | 44% |
| Adjusted operating profitnon-GAAP | $738 million | – | 51% |
| Adjusted operating marginnon-GAAP | 22.6% | – | up 410 basis points |
| Diluted EPSGAAP | $1.27 | – | 53% |
| Adjusted diluted EPSnon-GAAP | $1.52 | – | 60% |
| Net cash generated by operating activitiesGAAP | $1,100 million | – | 241% |
| Adjusted free cash flownon-GAAP | $925 million | – | 234% |
| Liquidityother | $5.6 billion | – | – |
Third Quarter and Full Year 2026 outlook
- RevenueThird Quarter 2026: $3,650M - $3,850M; Full Year 2026: $13,800M - $14,200M
- NoteThird Quarter 2026 organic net sales growth: 34% - 36%
- NoteThird Quarter 2026 adjusted operating profit: $898M - $938M
- NoteThird Quarter 2026 adjusted operating margin: 24.0% - 25.0%
- NoteThird Quarter 2026 adjusted diluted EPS: $1.77 - $1.83
- NoteThird Quarter 2026 adjusted diluted EPS growth: 43% - 48%
- NoteFull Year 2026 organic net sales growth: 30% - 32%
- NoteFull Year 2026 adjusted operating profit: $3,285M - $3,365M
- NoteFull Year 2026 adjusted operating margin: 23.3% - 24.3%
- NoteFull Year 2026 diluted EPS: $5.82 to $5.92
- NoteFull Year 2026 adjusted diluted EPS: $6.65 - $6.75
- NoteFull Year 2026 adjusted diluted EPS growth: 58% - 61%
- NoteFull Year 2026 adjusted free cash flow: $2,400M - $2,600M
- NoteFull Year 2026 capital expenditures: approximately 4.0% of revenue, at the high end of the range
What drove it
- Net sales growth reflected 18% organic sales growth, a 5% contribution from acquisitions, and a 1% benefit from favorable foreign currency translation.
- Adjusted operating margin expansion was driven by operational execution, continued strong productivity, and favorable price-cost, inclusive of tariff impacts and associated countermeasures.
- Management cited strong demand, growing pipelines, and continual capacity expansions underway to serve customers.
- Management stated that the data center market continues to demonstrate strong momentum and that demand fundamentals reinforce the durability of the growth environment.
Concerns
- Second quarter revenue reflected minor timing shifts, primarily due to temporary supply chain congestion and multi-phased project execution as deployments scale in size and complexity.
- Higher cash taxes and increased capital expenditures partially offset adjusted free cash flow drivers.
- The release identifies tariffs, global trade conflict, and related actions as factors subject to risks, uncertainties and assumptions.
What to watch
- Execution against third quarter net sales guidance of $3,650M - $3,850M and organic net sales growth guidance of 34% - 36%.
- Progress toward full year 2026 adjusted operating margin guidance of 23.3% - 24.3%.
- Delivery against full year 2026 adjusted free cash flow guidance of $2,400M - $2,600M while capital expenditures are expected to be approximately 4.0% of revenue.
- Capacity expansion and strategic investments intended to meet demand and capture market share.
- The effect of supply chain congestion and multi-phased project execution on deployment timing.
Balance sheet and cash flow
- Net cash generated by operating activities was $1,100 million.
- Adjusted free cash flow was $925 million.
- Vertiv ended the second quarter with $5.6 billion of liquidity and a net cash position.
- Second quarter adjusted free cash flow was driven by higher adjusted operating profit, working capital efficiency, and lower cash interest, partially offset by higher cash taxes and increased capital expenditures to support growth investments.
Analysis
Vertiv reported strong second quarter 2026 growth, with net sales of $3,274 million, up 24% from second quarter 2025. The company attributed growth to 18% organic sales growth, a 5% contribution from acquisitions, and a 1% benefit from favorable foreign currency translation. Management characterized the demand environment as strong, cited growing pipelines, and said data center demand continues to show strong momentum.
Profit growth exceeded sales growth. Operating profit was $638 million, up 44%, while adjusted operating profit was $738 million, up 51%. Adjusted operating margin reached 22.6%, up 410 basis points, supported by operational execution, productivity, and favorable price-cost inclusive of tariff impacts and associated countermeasures. Diluted EPS grew 53% to $1.27, and adjusted diluted EPS grew 60% to $1.52.
Cash generation and liquidity strengthened materially in the quarter. Net cash generated by operating activities was $1,100 million and adjusted free cash flow was $925 million, increases of 241% and 234%, respectively. Management cited higher adjusted operating profit, working capital efficiency, and lower cash interest as drivers, while higher cash taxes and increased capital expenditures partially offset those benefits. Vertiv ended the period with $5.6 billion of liquidity and a net cash position.
The company raised full year 2026 guidance across key metrics. Full year net sales guidance is $13,800M - $14,200M, with organic net sales growth of 30% - 32%, adjusted operating profit of $3,285M - $3,365M, adjusted operating margin of 23.3% - 24.3%, adjusted diluted EPS of $6.65 - $6.75, and adjusted free cash flow of $2,400M - $2,600M. Third quarter guidance calls for net sales of $3,650M - $3,850M and adjusted operating margin of 24.0% - 25.0%.
The principal execution items disclosed are minor revenue timing shifts tied to temporary supply chain congestion and multi-phased project execution as deployments grow in size and complexity. Management is accelerating capacity expansion and strategic investments to meet demand and capture market share, with full year capital expenditures expected to be approximately 4.0% of revenue. Sustaining margin expansion and cash flow while funding those growth investments are the key reported operating priorities.
Management, verbatim
This quarter reflects the compounding effect of years of deliberate investment in technology, capacity, and customer partnerships.
Giordano Albertazzi, Chief Executive Officer
Our pipelines continue to strengthen as the market expands globally, giving us confidence to raise guidance and conviction in sustained, strong performance — this year and beyond.
Giordano Albertazzi, Chief Executive Officer
We see a demand environment that continues to grow, and we continue to invest ahead of it — planting seeds now that we expect to compound for years to come.
Dave Cote, Executive Chairman
Not in the filing
stated, not guessed- Prior-year net sales amount
- Prior-year operating profit amount
- Prior-year adjusted operating profit amount
- Prior-year adjusted operating margin
- Prior-year diluted EPS amount
- Prior-year adjusted diluted EPS amount
- Prior-year operating cash flow amount
- Prior-year adjusted free cash flow amount
- Prior-quarter comparisons for reported metrics
- GAAP gross profit and gross margin
- Net income
- GAAP operating margin
- Share count
- Cash balance
- Debt balance
- Net cash amount
- Capital expenditures amount for the second quarter
- Segment revenue and segment profitability
- Dividend and share repurchase activity
- Prior outlook for comparison
- Forward GAAP operating income guidance
- Forward GAAP operating margin guidance
- Forward GAAP free cash flow guidance
- Forward gross margin guidance
- Forward operating expense guidance
- Forward tax-rate guidance
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.