01—Abstract
Summary
Summary of the 10-Q filed April 22, 2026. Cited figures are marked; the original filing is the authoritative source.
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 milliona, 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 billionb in senior unsecured notes and establishing a new $2.5 billion revolving credit facility, strengthening its financial flexibility.
02—Key points
Key Highlights
- Net sales increased by 30.1% to $2,649.5 million in Q1 2026 compared to Q1 2025.
- Gross profit margin improved to 37.7% in Q1 2026 from 33.7% in Q1 2025.
- Operating profit increased significantly by 51.4% to $440.1 million.
- The Americas segment showed exceptional growth with a 53.1% increase in net sales.
- The company refinanced its debt, issuing $2.1 billion in senior unsecured notes and establishing a new $2.5 billion revolving credit facility.
- Net cash provided by operating activities saw a substantial increase of 152.8% to $766.8 million.
- Capital expenditures increased significantly by 208.5% to $112.6 million, reflecting investments in capacity expansion.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Vertiv Holdings kept $0.15.
- Revenue$2.65B100.0%
- Cost of revenue−$1.65B62.3%
- Gross profit$999.7M37.7%
- Operating costs−$559.6M21.1%
- Operating income$440.1M16.6%
- Interest, other & tax−$50.0M1.9%
- Net income$390.1M14.7%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 22, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $2.65B$2.04B | +30.1% |
| Cost of Revenue | $1.65B$1.35B | +22.3% |
| Gross Profit | $999.70M$686.50M | +45.6% |
| SG&A Expenses | $456.70M$346.30M | +31.9% |
| Operating Income | $440.10M$290.70M | +51.4% |
| Interest Expense | -$4.40M$25.30M | −117.4% |
| Net Income | $390.10M$164.50M | +137.1% |
| EPS (Basic) | $1.02$0.43 | +137.2% |
| EPS (Diluted) | $0.99$0.42 | +135.7% |
| Shares Outstanding (Basic) | 382.92M380.85M | +0.5% |
| Shares Outstanding (Diluted) | 392.13M390.11M | +0.5% |
05—Questions
Frequently Asked Questions
What were the primary drivers of Vertiv's revenue growth in the first quarter of 2026?
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.
How did the refinancing of debt impact Vertiv's financial position?
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.
What is the company's outlook regarding demand for data center infrastructure, especially related to AI?
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.
What are the key areas of investment for Vertiv in the near future?
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.
06—Continue