01—Abstract
Summary
Summary of the 10-Q filed July 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Vertiv Holdings Co. reported robust financial performance for the second quarter and first half of 2026, demonstrating significant year-over-year growth in net sales and operating profit.
Net sales for the second quarter increased by 24.1% to $3.3 billiona, driven by strong demand, particularly in the Americas and Asia Pacific regions, and bolstered by strategic acquisitions. Gross profit margin expanded to 37.7% from 34.0% in the prior year, reflecting favorable product and service mix, and operational leverage. Net income surged by 53.5% to $497.8 million for the quarter.
For the first half of the year, net sales grew 26.7% to $5.9 billionb, with net income rising 81.7% to $887.9 million. Key drivers for this growth include strong demand for data center infrastructure, particularly for AI and high-performance computing applications, alongside strategic capacity expansions and technology portfolio enhancements.
The company's proactive management of supply chain challenges and macroeconomic uncertainties, through diversification and hedging strategies, appears to be contributing to its positive financial trajectory. Vertiv's balance sheet shows a substantial increase in cash and cash equivalents, providing strong liquidity.
02—Key points
Key Highlights
- Net sales increased by 24.1% to $3,274.3 million in Q2 2026 and by 26.7% to $5,923.8 million in the first half of 2026 compared to the prior year periods.
- Operating profit significantly improved, up 44.2% to $637.9 million for Q2 2026 and up 47.0% to $1,078.0 million for the first half of 2026.
- Net income grew substantially, increasing by 53.5% to $497.8 million in Q2 2026 and by 81.7% to $887.9 million in the first half of 2026.
- Gross profit margin expanded to 37.7% in Q2 2026 and 37.7% in the first half of 2026, up from 34.0% and 33.9% respectively in the prior year periods, indicating improved pricing and cost management.
- The Americas segment continues to be a strong performer, with net sales up 29.2% in Q2 and 40.7% year-to-date, and operating profit up 48.6% in Q2 and 64.8% year-to-date.
- Cash and cash equivalents significantly increased to $2,810.6 million as of June 30, 2026, up from $1,728.4 million as of December 31, 2025, indicating strong liquidity.
- The company completed several acquisitions during the period, contributing to revenue growth and expanding its technology portfolio, particularly in liquid cooling and thermal management.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Vertiv Holdings kept $0.15.
- Revenue$3.27B100.0%
- Cost of revenue−$2.04B62.3%
- Gross profit$1.23B37.7%
- Operating costs−$597.0M18.2%
- Operating income$637.9M19.5%
- Interest, other & tax−$140.1M4.3%
- Net income$497.8M15.2%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 29, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $3.27B$2.64B | +24.1% |
| Cost of Revenue | $2.04B$1.74B | +17.1% |
| Gross Profit | $1.23B$896.60M | +37.7% |
| SG&A Expenses | $494.40M$395.60M | +25.0% |
| Operating Income | $637.90M$442.40M | +44.2% |
| Interest Expense | $17.40M$21.30M | −18.3% |
| Net Income | $497.80M$324.20M | +53.5% |
| EPS (Basic) | $1.29$0.85 | +51.8% |
| EPS (Diluted) | $1.27$0.83 | +53.0% |
| Shares Outstanding (Basic) | 384.56M381.48M | +0.8% |
| Shares Outstanding (Diluted) | 392.75M389.85M | +0.7% |
05—Questions
Frequently Asked Questions
What are the key drivers behind Vertiv's significant revenue and profit growth in the reported periods?
Vertiv's strong performance is driven by robust demand for digital infrastructure technologies, particularly from data centers supporting AI and high-performance computing applications. The company also benefited from strategic acquisitions, capacity expansions, and favorable pricing and product mix which improved gross margins. Operational leverage and effective cost management also contributed to the substantial increase in operating profit and net income.
How has Vertiv managed the increasing demand and potential supply chain challenges?
Vertiv has strategically invested in expanding its global capacity to meet current and anticipated customer demand. To manage supply chain and macroeconomic risks, the company is implementing strategies such as supply chain diversification, regional sourcing, pricing actions, and financial hedging. These efforts aim to bolster operational resiliency and ensure continued growth.
What is the financial impact of the recent acquisitions on Vertiv's results?
Vertiv has completed several acquisitions, including PurgeRite, Great Lakes, and others focused on liquid cooling and thermal management. These acquisitions contributed $129.7 million in sales and related costs in Q2 2026 and $226.3 million in the first half of 2026. While these acquisitions are driving revenue growth, they also incurred acquisition-related expenses, including changes in fair value of contingent consideration, which impacted operating expenses.
What is Vertiv's current liquidity position and outlook?
Vertiv reported a strong liquidity position with cash and cash equivalents of $2,810.6 million as of June 30, 2026. The company also has significant availability under its Senior Unsecured Revolving Credit Facility. Management believes its current cash, investments, and credit facility availability provide adequate liquidity for the next 12 months to fund operations, growth investments, and manage its capital structure.
06—Continue