Strong Top-Line Growth
Net sales of $2.65B in Q1, up 30% year-over-year; organic net sales up 23% YoY (acquisitions +4%, favorable FX +3%).
Vertiv Holdings
· VRT
April 22nd, 2026
Summary
- Earnings Call Date:
- 2026-04-22
- Change Since:
- +3.72%
- Next Earnings Date:
- 2026-08-05
Earnings Call Sentiment
PositiveThe call conveyed strong operational and financial momentum: robust revenue growth (30% reported / 23% organic), substantial margin expansion, sizable profit and EPS beats, strong free cash flow and very low leverage, alongside raised full-year guidance. Key growth pockets include Americas, data center demand, prefabrication/converged solutions and services; management is investing aggressively in capacity, engineering and targeted M&A. Near-term challenges include a pronounced EMEA revenue decline in Q1, APAC timing pressure, tariff and supply chain headwinds, and short-term working capital and margin effects as capacity is brought online. Overall, the positive operational and financial developments and raised guidance materially outweigh the localized and manageable headwinds.
Company Guidance
Vertiv raised its 2026 outlook, now guiding to adjusted diluted EPS of $6.35 at the midpoint (up 51% vs. 2025), net sales of $13.75 billion (midpoint, +34% YoY), adjusted operating profit of $3.2 billion (midpoint, +53% YoY) and an adjusted operating margin of 23.3% (midpoint, +290 bps vs. 2025); adjusted free cash flow is guided to $2.2 billion (midpoint, +17% YoY). For Q2 the company expects adjusted diluted EPS of $1.40 (midpoint, +47% YoY), net sales of $3.35 billion (+27% YoY), adjusted operating profit of $710 million (+45% YoY) and an adjusted operating margin of 21.2% (+270 bps YoY); management also expects ~30% organic sales growth for the year with regional organic splits of high‑30s in the Americas, mid‑20s in APAC and flat in EMEA, expects orders to be up year‑over‑year, to be price/cost positive (inclusive of tariffs), and to maintain strong cash generation and a low net leverage (exited Q1 at 0.2x).
Outstanding Regional Performance — Americas
Americas organic growth of 44% in Q1, driving broad-based momentum across nearly all product lines and contributing materially to overall revenue growth.
Margin Expansion and Profitability
Adjusted operating margin of 20.8% in Q1, up 430 basis points YoY and ~180 bps above prior guidance; adjusted operating profit of $551M, up 64% YoY and $56M ahead of guidance.
Earnings and EPS Upside
Adjusted diluted EPS of $1.17 in Q1, up 83% YoY and $0.19 above prior guidance; full-year adjusted diluted EPS guidance raised to $6.35 (midpoint), +51% vs 2025.
Very Strong Cash Generation and Low Leverage
Adjusted free cash flow of $653M in Q1 (management reported significant YoY improvement); exited the quarter with net leverage of 0.2x, providing strategic flexibility.
Raised Full-Year Revenue and Profit Guidance
Full-year net sales guidance updated to $13.75B (midpoint), +34% vs prior year; adjusted operating profit guidance raised to $3.2B (midpoint), +53% vs prior year.
Robust Pipeline and Order Momentum
Management reports broad-based, expanding pipeline and expects orders to be up year-over-year in 2026; Q4 and Q1 orders and EMEA bookings described as encouraging.
Investment in Capacity, Engineering and Services
Accelerated CapEx and capacity expansions across manufacturing and services (including Pelzer facility), strategic investments in engineering labs and customer test capabilities to support AI/data center demand.
Strategic M&A to Strengthen Offerings
Announced two strategic acquisitions to expand thermal management (dry coolers) and structural fabrication capabilities, enhancing liquid-cooling and converged infrastructure offerings.
Product & Services Momentum — Converged Systems
Growing adoption of prefabricated/converged solutions (SmartRun / OneCore) and expanding service capabilities (fluid management, liquid cooling) positioning Vertiv to capture more system-level content.
Corporate Milestones
Achieved investment-grade credit ratings and inclusion in the S&P 500 — management cited as meaningful validation of business strength and execution.
Operator
Good morning. My name is Jenny, and I will be your conference operator today. At this time, I would like to welcome everyone to Vertiv's First Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note that this call is being recorded. I would now like to turn the program over to your host for today's conference call, Lynne Maxeiner, Vice President of Investor Relations.
Lynne Maxeiner
Great. Thank you, [ Jeanie ]. Good morning, and welcome to Vertiv's First Quarter 2026 Earnings Conference Call. Joining me today are Vertiv's Executive Chairman, Dave Cote; Chief Executive Officer, Gio Albertazzi; and Chief Financial Officer, Craig Chamberlain. We have 1 hour for the call today. During the Q&A portion of the call, please be mindful of others in the queue and limit yourself to one question. And if you have a follow-up question, please rejoin the queue. Before we begin, I would like to point out that during the course of this call, we will make forward-looking statements regarding future events, including the future financial and operating performance of Vertiv.
These forward-looking statements are subject to material risks and uncertainties, that could cause actual results to differ materially from those in the forward-looking statements. We refer to the cautionary language included in today's earnings release, and you can learn more about these risks in our annual and quarterly reports, and other filings made with the SEC. Any forward-looking statements that we make today are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation t...
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