Vertiv (VRT) Q3 2026 earnings summary

Executive summary

• Q3 net sales rose 61.2% YoY to $4.313B, including 55.0% organic growth; organic orders increased more than 100% YoY.

• Strong execution and demand visibility lifted FY26 guidance across sales, adjusted operating profit, EPS and free cash flow; expectations point to significant above-market growth in 2027.

Financial highlights

• Adjusted operating profit was $1,086.9M, up 83% YoY; adjusted operating margin expanded 290 bps to 25.2%.

• Adjusted diluted EPS rose 78% to $2.21; GAAP diluted EPS was $1.95 versus $1.02 a year earlier.

• Q3 net income was $764.5M versus $398.5M; gross profit was $1,643.4M, or 38.1% of sales versus 37.8%.

• Adjusted free cash flow was $652.2M, up ~50% YoY; operating cash flow was $794.0M.

Outlook and guidance

• FY26 net sales guidance is $14.45B–$14.85B, midpoint $14.65B, with expected organic growth of 37%–39% and midpoint ~38%.

• FY26 adjusted operating profit guidance is $3.475B–$3.555B; adjusted margin is 23.5%–24.5%, midpoint 24.0%; adjusted diluted EPS is $7.10–$7.20, midpoint $7.15.

• FY26 adjusted free cash flow guidance is $2.6B–$2.8B, midpoint $2.7B; full-year conversion is expected at ~95%.

• Q4 midpoint guidance: net sales $4.413B, organic growth 50%, adjusted diluted EPS $2.25 and adjusted operating margin 25.8%.

• For 2027, expectations include significant above-market organic sales growth and continued margin expansion, supported by backlog, pipeline and execution.