Key Highlights

  • Management guided third-quarter adjusted diluted EPS of 1.80 at the midpoint, against consensus of 1.82.
  • Management guided third-quarter net sales of USD 3.75 billion at the midpoint, matching the USD 3.75 billion consensus estimate.
  • Second-quarter adjusted diluted EPS was 1.52 and adjusted operating margin was 22.6%, 410 basis points higher.
  • Full-year net sales guidance was raised USD 250 million to USD 14 billion, with adjusted EPS guided at 6.70.

Vertiv Holdings (NYSE:VRT) reports third-quarter results on Wednesday, Oct. 28, before the market opens. Consensus stands at EPS of 1.82 on revenue of USD 3.75 billion, and the company has a market capitalization of USD 76.91 billion.

Vertiv Holdings supplies power, thermal and infrastructure equipment and services for data centers. Second-quarter net sales were USD 3,274.3 million against USD 2,638.1 million, an increase of 24.1%, and net income was USD 497.8 million against USD 324.2 million.

Estimates Against Third-Quarter Guidance

Management projected third-quarter adjusted diluted EPS of 1.80 at the midpoint and net sales of USD 3.75 billion at the midpoint, with organic growth of approximately 35% and an additional 5% from acquisitions. The EPS estimate of 1.82 is above the guided midpoint, and the revenue estimate of USD 3.75 billion matches it.

By region, management guided Americas and Asia Pacific organic growth in the high 30s and EMEA in the mid- to high teens.

What Management Guided and What It Left Open

Management raised full-year guidance across its key metrics: net sales of USD 14 billion at the midpoint, adjusted diluted EPS of 6.70 within a range of 6.65 to 6.75, adjusted operating profit of USD 3.325 billion, an adjusted operating margin of 23.8% and adjusted free cash flow of USD 2.5 billion. Capital expenditures were put at 4% of 2026 sales.

Management said minor revenue timing shifts occurred in the second quarter from multiphase project execution and temporary supply chain dynamics, and that its second-half outlook assumes some of that congestion continues. It left open the pace of EMEA, where organic sales declined 2% and a return to growth was guided for the second half.

Second-Quarter Results Under GAAP

Gross profit was USD 1,234.9 million, or 37.7% of sales, against USD 896.6 million. The filing credits higher sales volumes and acquisition-related sales of USD 129.7 million, with a USD 35.9 million favorable currency effect.

SG&A expenses were USD 494.4 million against USD 395.6 million, and amortization of intangibles was USD 73.7 million against USD 46.9 million. Operating profit was USD 637.9 million against USD 442.4 million, and diluted EPS was 1.27 against 0.83.

Adjusted operating profit was USD 738 million, up 51%, and adjusted free cash flow was USD 925 million, with free cash flow conversion above 150% in the quarter.

Cash, Inventory and Balance Sheet

Cash and cash equivalents were USD 2,810.6 million against USD 1,728.4 million at year-end, and short-term investments were USD 300.0 million. Net leverage was negative 0.1x. Inventory was USD 2.523 billion against USD 1.457 billion, and deferred revenue was USD 3.634 billion.

Net cash provided by operating activities was USD 1,866.6 million for the first six months. Long-term debt, net, was USD 2,939.8 million, and total assets were USD 15,900.9 million against USD 12,212.4 million. The estimates table lists a market capitalization of USD 76.91 billion.

Comparisons to Make in the Report

Adjusted EPS against the 1.80 midpoint and net sales against USD 3.75 billion are the headline comparisons. Other markers are the regional growth rates, adjusted operating margin and the supply chain timing shifts.