Vertiv Holdings Co

Vertiv said Q2 net sales were $3.274 billion, up $636 million or 24% year over year; organic sales growth was 18%, with 5% from acquisitions and 1% from favorable FX. Adjusted diluted EPS was $1.52, up $0.57 or 60% versus last year and $0.12 above guidance. Adjusted operating profit was $738 million, up 51% year over year, and adjusted operating margin was 22.6%, up 410 basis points. Adjusted free cash flow was $925 million, up 234% year over year, with free cash flow conversion above 150%, and net leverage was negative 0.1x at quarter end. For Q3 2026, guidance calls for adjusted diluted EPS of $1.80 at the midpoint, net sales of $3.75 billion, adjusted operating profit of $918 million, and adjusted operating margin of 24.5%. For full-year 2026, guidance was raised to net sales of $14 billion, adjusted diluted EPS of $6.70, adjusted operating profit of $3.325 billion, adjusted operating margin of 23.8%, and adjusted free cash flow of $2.5 billion.

Giordano Albertazzi emphasized that demand is broad-based and the company is executing on a large, growing opportunity tied to AI and data center infrastructure. He highlighted accelerating pipeline momentum across hyperscale, enterprise, colo, and neocloud customers, plus ongoing investments in capacity, power architecture, thermal systems, and services. His tone was very confident, but he also stressed discipline, saying the company is still learning how to manage increasingly complex, multi-phase projects and is investing ahead of demand.

Craig Chamberlin focused on the quarter’s financial outperformance and the mechanics behind cash flow. He cited $3.274 billion of sales, $738 million of adjusted operating profit, 22.6% adjusted operating margin, and $925 million of adjusted free cash flow, noting the cash result was helped by project milestone collections, including initial advanced payments, plus lower cash interest, partly offset by higher taxes and CapEx. He also said net leverage finished at negative 0.1x and explained that deferred revenue increased because of advance deposits and milestone-based collections on larger projects.

Analysts pressed management on the Q2 timing shifts and supply chain congestion, asking whether the issue is one-off or recurring. Management said the issue reflects increasing complexity in large, multi-dimensional projects and the learning curve around internal and external supply-chain interdependencies, but they expect the timing delays to resolve in the second half and said guidance already includes some prudence. Questions also focused on deferred revenue and progress collections; management said the balance sheet movement reflects project-based milestone payments and there was no structural change in revenue recognition. On technology and M&A, management said 800V DC adoption should be gradual, solid-state transformer products are still in development, and the M&A pipeline remains active but disciplined.