Vertiv (VRT) Q1 2026 earnings summary

Executive summary

• Net sales grew 30% year-over-year in Q1 2026 to $2.65 billion, driven by 23% organic growth, robust Americas demand, and recent acquisitions.

• Adjusted operating margin reached 20.8%, up 430 basis points year-over-year, with adjusted operating profit up 64% to $551 million.

• Adjusted diluted EPS rose 83% to $1.17, while net income increased 137% to $390.1 million; basic EPS was $1.02 and diluted EPS $0.99–$1.02.

• Adjusted free cash flow was $653 million, up 147% year-over-year, with operating cash flow at $767 million.

• Full-year 2026 guidance was raised for net sales, adjusted operating profit, and adjusted diluted EPS, reflecting confidence in sustained demand and capacity expansion.

Financial highlights

• Q1 2026 net sales: $2.65 billion, up 30% year-over-year and $50 million above guidance.

• Adjusted operating profit: $551 million, up 64% year-over-year and $56 million above guidance.

• Adjusted diluted EPS: $1.17, up 83% year-over-year and $0.19 above guidance.

• Adjusted free cash flow: $653 million, up 147% year-over-year.

• Net leverage at quarter-end was ~0.2x, providing strategic flexibility.

Outlook and guidance

• Full-year 2026 net sales guidance: $13.5–$14.0 billion, up 34% year-over-year, with 29–31% organic growth.

• Adjusted operating profit guidance: $3.14–$3.26 billion, up 53% year-over-year.

• Adjusted diluted EPS guidance: $6.30–$6.40, up 51% year-over-year; full-year diluted EPS $5.60–$5.70.

• Adjusted operating margin expected at 22.8–23.8%, up 290 basis points from 2025.

• Adjusted free cash flow guidance: $2.1–$2.3 billion, up 17% year-over-year.