10-QPeriod: Q1 FY2026

Vertiv Holdings Co Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 22, 2026For Securities:VRT

Summary

Vertiv Holdings Co. reported a strong first quarter for 2026, demonstrating significant growth and improved profitability. Net sales surged by 30.1% year-over-year to $2,649.5 million, driven by robust demand across its product and service offerings. This top-line growth, coupled with improved gross margins to 37.7% and operational leverage, translated into a substantial increase in operating profit, which grew by 51.4% to $440.1 million. The company's financial performance was bolstered by strong execution, particularly in the Americas segment, which saw a 53.1% increase in net sales. Management highlighted strategic investments in capacity expansion to meet the burgeoning demand for data center infrastructure driven by AI and high-performance computing. The company also successfully refinanced its debt during the quarter, issuing $2.1 billion in senior unsecured notes and establishing a new $2.5 billion revolving credit facility, strengthening its financial flexibility.

Financial Highlights

52 data points
Beta

Revenue

$2.65B

37.7% Gross Margin

Net Income

$390.10M

14.7% Net Margin

EPS (Diluted)

$0.99

Total Assets

$13.40B

Cash & Equivalents

$2.15B

Free Cash Flow

$654.20M

Financial Statements
Beta
Revenue$2.65B
Cost of Revenue$1.65B
Gross Profit$999.70M
SG&A Expenses$456.70M
Operating Income$440.10M
Interest Expense-$4.40M
Net Income$390.10M
EPS (Basic)$1.02
EPS (Diluted)$0.99
Shares Outstanding (Basic)382.92M
Shares Outstanding (Diluted)392.13M

Key Highlights

  • 1Net sales increased by 30.1% to $2,649.5 million in Q1 2026 compared to Q1 2025.
  • 2Gross profit margin improved to 37.7% in Q1 2026 from 33.7% in Q1 2025.
  • 3Operating profit increased significantly by 51.4% to $440.1 million.
  • 4The Americas segment showed exceptional growth with a 53.1% increase in net sales.
  • 5The company refinanced its debt, issuing $2.1 billion in senior unsecured notes and establishing a new $2.5 billion revolving credit facility.
  • 6Net cash provided by operating activities saw a substantial increase of 152.8% to $766.8 million.
  • 7Capital expenditures increased significantly by 208.5% to $112.6 million, reflecting investments in capacity expansion.

Frequently Asked Questions

Vertiv's revenue growth was driven by higher sales volumes across both product and service offerings, with a notable increase of 30.1% year-over-year. The Americas segment, in particular, experienced a significant surge in sales, largely due to increased demand for products and services.

Vertiv successfully refinanced its debt during the quarter by issuing $2.1 billion in senior unsecured notes and establishing a new $2.5 billion senior unsecured revolving credit facility. This move likely improved its financial flexibility, extended debt maturities, and potentially lowered borrowing costs, contributing to a significant decrease in interest expense.

Vertiv sees very robust growth in demand for data center infrastructure supporting artificial intelligence (AI) and high-performance compute applications. The company is strategically investing in expanding its global capacity to meet this current and anticipated customer demand, reflecting a strong positive outlook for this sector.

Vertiv is prioritizing investments in expanding its global capacity to support AI and high-performance compute demand. Additionally, the company is investing in product and technology innovation for evolving customer requirements like hybrid cooling and high voltage DC power, as well as in prefabricated and modular solutions to accelerate deployment speed and execution certainty.