10-QPeriod: Q2 FY2026

Vertiv Holdings Co Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 29, 2026For Securities:VRT

Summary

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 billion, 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 billion, 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.

Key Highlights

  • 1Net 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.
  • 2Operating 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.
  • 3Net 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.
  • 4Gross 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.
  • 5The 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.
  • 6Cash 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.
  • 7The company completed several acquisitions during the period, contributing to revenue growth and expanding its technology portfolio, particularly in liquid cooling and thermal management.

Frequently Asked Questions

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.

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.

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.

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.