01—Abstract
Summary
Summary of the 10-Q filed October 28, 2026. Cited figures are marked; the original filing is the authoritative source.
Vertiv Holdings Co. (VRT) reported a strong third quarter of 2026, with significant increases in net sales and operating profit, driven by robust demand in data centers, particularly for AI and high-performance computing applications.
Net sales grew by 61.2% year-over-year to $4.31 billiona, with notable contributions from higher sales volumes and strategic acquisitions. The company's profitability also saw substantial improvement. Gross profit increased by 62.6% to $1.64 billion, leading to an operating profit of $983.8 million, up 90.4% from the prior year's quarter.
This margin expansion was attributed to operational leverage and improved project execution. For the first nine months of the year, net sales increased by 39.3% to $10.24 billionb, and operating profit grew by 65.0% to $2.06 billion. Financially, Vertiv significantly bolstered its cash position, ending the quarter with $3.51 billion in cash and cash equivalents.
The company also completed a major acquisition of UtilityInnovation Group (UIG) for $1.45 billionc shortly after the quarter's end, further strengthening its position in the power systems market. The company reiterated its positive outlook, driven by continued AI-related demand and strategic investments in capacity expansion.
02—Key points
Key Highlights
- Net sales for Q3 2026 surged by 61.2% to $4.31 billion compared to Q3 2025, driven by strong product and service volume, alongside acquisition contributions.
- Operating profit increased by a significant 90.4% to $983.8 million in Q3 2026, indicating strong operational leverage and execution.
- Gross profit margin improved to 38.1% in Q3 2026 from 37.8% in Q3 2025, reflecting better operational efficiency.
- The company's cash position strengthened considerably, with cash and cash equivalents reaching $3.51 billion as of September 30, 2026, up from $1.73 billion at the end of 2025.
- Strategic acquisitions, including PurgeRite, Great Lakes, and other solution providers in liquid cooling, contributed to sales growth and portfolio expansion.
- Vertiv completed a significant acquisition of UtilityInnovation Group (UIG) for $1.45 billion on October 26, 2026, enhancing its capabilities in power systems for AI data centers.
- The company expects full-year 2026 capital expenditures to be between $575.0 million and $600.0 million, primarily for capacity expansion.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Vertiv Holdings kept $0.18.
- Revenue$4.31B100.0%
- Cost of revenue−$2.67B61.9%
- Gross profit$1.64B38.1%
- Operating costs−$659.6M15.3%
- Operating income$983.8M22.8%
- Interest, other & tax−$219.3M5.1%
- Net income$764.5M17.7%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 28, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $4.31B$2.68B | +61.2% |
| Cost of Revenue | $2.67B$1.67B | +60.3% |
| Gross Profit | $1.64B$1.01B | +62.6% |
| SG&A Expenses | $556.90M$414.30M | +34.4% |
| Operating Income | $983.80M$516.70M | +90.4% |
| Interest Expense | $6.40M$22.80M | −71.9% |
| Net Income | $764.50M$398.50M | +91.8% |
| EPS (Basic) | $1.99$1.04 | +91.3% |
| EPS (Diluted) | $1.95$1.02 | +91.2% |
| Shares Outstanding (Basic) | 385.00M382.03M | +0.8% |
| Shares Outstanding (Diluted) | 392.68M390.93M | +0.4% |
05—Questions
Frequently Asked Questions
What were the primary drivers of Vertiv's revenue growth in the third quarter of 2026?
Vertiv's revenue growth in the third quarter of 2026 was primarily driven by higher sales volumes, particularly in product sales, and contributions from strategic acquisitions. The company also noted positive impacts from foreign currency exchange rates.
How did Vertiv's profitability perform in the third quarter of 2026?
Profitability showed strong improvement. Gross profit increased by 62.6% year-over-year, and operating profit more than doubled, rising by 90.4%. This was supported by increased sales volume, operational leverage, and improved project execution, leading to a slight expansion in gross margin.
What is the significance of the UtilityInnovation Group (UIG) acquisition?
The acquisition of UIG, completed shortly after the quarter's end, is significant as UIG provides power systems crucial for AI data center workloads. The acquisition, valued at $1.45 billion plus potential earnouts, is expected to enhance Vertiv's offerings in advanced power solutions and its ability to serve the burgeoning AI market.
How is Vertiv managing its liquidity and capital structure?
Vertiv ended the quarter with a strong cash position of $3.51 billion. The company also has significant availability under its Senior Unsecured Revolving Credit Facility. Management believes these resources provide adequate liquidity for the next 12 months, supporting growth investments and capital structure management.
06—Continue