VRT US S&P 500Russell 1000 Earnings call
Vertiv (VRT) · Q2 2026 results and valuation
Share price: $206.51 · 2026-11-11
Vertiv provides power and cooling technologies for data centers, communication networks, and industrial environments. The company offers hardware, software, and services to manage critical digital infrastructure for a global customer base. It operates in more than 40 countries across the Americas, Asia Pacific, and Europe, the Middle East, and Africa. Source: 10-K annual report (2026-02-13)
Results Q2 2026 vs Q1 2026 · previous quarter · published 29 Jul 2026 and 22 Apr 2026
Net income up 27.6% on the previous quarter, guidance raised. Management sounded upbeat, though noticeably less so answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+27.6%
Net income vs Q1 2026
Guidance raised
Net income 497.8M vs 390.1M
Revenue +23.6%
Against the same quarter last year (Q2 2025) it is +53.5%, so it is not just seasonal.
2 · How management spoke
Upbeat
More upbeat than 89% of company calls
Answers to analysts: restrained, but clearly less so than the script.
Similar to last call.
3 · What stood out
Key theme
Adjusted operating margin came in at 22.6%, exceeding Vertiv's guidance and growing 410 basis points year-on-year.
Valuation
Is Vertiv undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 20.0% growth a year (3-year revenue growth), the model's fair value is $241.93 a share — the stock trades 15% below it. Today's price assumes 17.8% growth a year.
Current price
$206.51
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+17.8% for 10 yrs
Fair value / share
$241.93
Buy below
$181.45
Price vs fair value
Undervalued 15%
Price vs buy-below price
Overvalued 14%
Read between the lines
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Key theme
Organic sales growth was 18%, with 5% additional growth contribution from acquisitions and an additional 1% growth contribution from favorable foreign exchange.
Source quote
“Organic sales growth was 18%, with 5% additional growth contribution from acquisitions and an additional 1% growth contribution from favorable foreign exchange. Looking at net sales, we delivered $3.274 billion in the quarter, that is up $636 million or 24% versus prior year. By regions, Americas grew 21% organically APAC grew 26% organically, and EMEA was down 2% organically.”
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Guidance ↑
Vertiv has raised its full year outlook Net sales were up 24% versus Q2 25 driven by continued strength in The Americas which grew 29%...
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Guidance
Pricing continues to be favorable Vertiv expects positive price cost in 2026, including the current impact of tariffs and countermeasures.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — one of the biggest drops of any company call. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“The year over year improvement was driven by $0.58 from higher adjusted after tax adjusted operating profit which was driven primarily from higher sales volume and increased profitability.”
“A strong quarter EPS, margin, profit and cash convincingly strong.”
“Importantly, EMEA returned to positive net sales growth with a 2% year-on-year increase, On an organic basis, net sales grew 18% with additional 5% from acquisitions and 1% from favorable...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 3.27B | 2.65B | +23.6% | 2.64B | +24.1% |
| Gross profit | 1.23B | 999.7M | +23.5% | 896.6M | +37.7% |
| Operating income | 637.9M | 440.1M | +44.9% | 442.4M | +44.2% |
| Net income | 497.8M | 390.1M | +27.6% | 324.2M | +53.5% |
| EPS | 1.27 | 0.99 | +28.3% | 0.83 | +53.0% |
| P/E today 57.4 | 75.8 | 63.0 | +12.8 | 61.4 | +14.4 |
Topics
Most discussed now
- The margin expansion was driven by strong operational execution, continued productivity gains, and favorable price cost execution…
- New At the naval Postgraduate School in partnership with NVIDIA, Vertiv delivered a fully engineered packaged rack, power, and cooling system...
- New On m and Vertiv closed the Thermo King acquisition strengthening its heat-rejection capabilities.
- New In terms of the actual progress collections, yeah, there is a portion that Vertiv gets up front, and there is...
- The seed planning Giordano and his team have been doing continues to pay off and will do so even more...
Faded since Q1 2026
- Fading Orders to be up year-over-year, which reflects the sustained demand environment Vertiv is seeing across its markets.
- Fading From a regional perspective, America was the primary engine with 44% organic growth.
- Fading Clearly, one is engineering labs, central to development of Vertiv's technology portfolio.
- Fading Vertiv's adjusted operating margin of 20.8% expanded by 430 basis points versus last year, showing a great operating performance from...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Regulation FD disclosure · SEC 8-K
Vertiv Holdings Co. announced a definitive agreement to acquire King Environmental Services Ltd., with the transaction expected to close in the fourth quarter of 2026.
- Material agreement; Regulation FD disclosure · SEC 8-K
Vertiv Holdings Co. entered into an agreement to acquire UtilityInnovation Group for approximately $1.45 billion in cash, with an additional potential consideration of up to $1.15 billion based on EBITDA targets.
- Other events · SEC 8-K
Vertiv Holdings Co declared a quarterly cash dividend of $0.0625 per share of Class A common stock, payable to stockholders of record as of September 14, 2026.
- Results of operations; Regulation FD disclosure · SEC 8-K
Vertiv Holdings Co issued a press release on July 29, 2026, announcing its financial results for the three and six months ended June 30, 2026.
- Shareholder vote results · SEC 8-K · routine
- Regulation FD disclosure · SEC 8-K
Vertiv Holdings Co. announced the closing of the acquisition of ThermoKey S.p.A. on June 12, 2026.
- Other events · SEC 8-K
Vertiv Holdings Co declared a quarterly cash dividend of $0.0625 per share of Class A common stock, payable to stockholders of record as of June 15, 2026.
- Regulation FD disclosure · SEC 8-K
Vertiv Holdings Co. announced the closing of the acquisition of Strategic Thermal Labs, LLC on April 27, 2026.