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Vertiv reported third-quarter revenue of $4.3 billion, above the consensus estimate of $3.8 billion. Adjusted earnings per share were $2.21, also above the consensus estimate of $1.82.
Revenue rose 61.2% from $2.7 billion a year earlier. Vertiv’s filing attributed the increase primarily to higher sales volumes and acquisition-related sales; it said both products and services and spares grew. The filing attributed sales growth in the Americas primarily to higher volumes from capacity expansion and large-project execution, while Asia Pacific and Europe, the Middle East and Africa also grew.
Gross margin rose to 38.1% from 37.8%, with the filing citing operating leverage and improved project execution. Operating margin increased to 22.8% from 19.3%, and free cash flow rose to $652.2 million from $436.0 million. Diluted earnings per share increased to $1.95 from $1.02. Vertiv’s revenue also came in above its own guidance for the quarter.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $4.3 billion | $2.7 billion | 61.2% |
| Diluted EPS | $1.95 | $1.02 | 90.9% |
| Gross margin | 38.1% | 37.8% | 0.3 percentage points |
| Operating margin | 22.8% | 19.3% | 3.5 percentage points |
| Free cash flow | $652.2 million | $436.0 million | 49.6% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $2.21 | $1.82 | Beat by 21.4% |
| Revenue | $4.3 billion | $3.8 billion | Beat by 14.6% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
| Against its own guidance | For | Guided | Reported | Result |
|---|---|---|---|---|
| Operating income | Q3 FY2026 | $918.0 million | $983.8 million | Above the guide |
| Operating margin | Q3 FY2026 | 24.5% | 22.8% | Below the guide |
| Revenue | Q3 FY2026 | $3.7 billion–$3.9 billion | $4.3 billion | Above the guide |
Revenue came in within or above the company’s guide in 1 of the last 2 quarters it guided.
What management said on the call
CEO Giordano Albertazzi said demand was broad across technologies, customer types and regions. He said third-quarter organic orders rose more than 100.0% year over year and that the European pipeline had expanded substantially. In the Americas, he identified power availability, permitting and construction-site labor as factors pacing growth, though he said they were not slowing it.
Albertazzi said Vertiv expected positive price-cost performance for 2026, including the effects of tariffs and countermeasures. CFO Craig attributed adjusted operating margin expansion in the quarter to higher sales volumes, operating leverage and productivity. Craig said higher adjusted operating profit supported cash flow, partly offset by working-capital use and higher net capital spending.
On investment, Albertazzi said capacity additions were already contributing to third- and fourth-quarter growth. He pointed to expanded facilities, an operational factory in Malaysia and longer-term capacity agreements with suppliers. He also said Vertiv was on track to expand chiller production capacity by year-end.
Asked about delayed revenue, Craig said some sales held over from the second quarter were recovered in the third. He said the company was continuing to build factory resilience and improve its ability to deliver projects at a steady pace. Asked about product quality, Albertazzi said new products can have more variable quality initially, but that Vertiv was seeing improvement in that early phase.
On competition and technology, Albertazzi said liquid cooling was taking a larger share of heat extraction in the market, while air cooling still had a role. He emphasized coordination across liquid cooling, air cooling and heat rejection, but did not quantify the liquid-cooling business. For the quarter ahead, Craig said Vertiv expected organic sales growth across all regions, alongside operating leverage that would offset some mix impact.
Guidance
Vertiv raised its full-year revenue outlook to approximately $14.7 billion at the midpoint and its adjusted diluted EPS outlook to $7.15. The company also raised its adjusted operating margin outlook to 24.0% from 23.8%, and its adjusted free cash flow outlook to $2.7 billion from $2.5 billion.
For the fourth quarter, Vertiv expects revenue of approximately $4.4 billion and adjusted diluted EPS of $2.25 at the midpoint. Albertazzi said Vertiv expects continued organic sales growth and margin expansion in 2027.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Market share | FY2027 | Vertiv expects to gain market share in FY2027. | — | — |
| Free cash flow, non-GAAP | FY2027 | Vertiv expects to generate significant adjusted free cash flow in FY2027. | — | — |
| Operating margin | FY2027 | Vertiv expects continued margin expansion in FY2027. | — | — |
| Revenue, Organic | FY2027 | Vertiv expects significant above-market organic sales growth in FY2027. | — | — |
| Operating margin, non-GAAP | Q4 FY2026 | 25.8% | Q3 FY2026: 24.0%–25.0% | Raised |
| Operating income, non-GAAP | Q4 FY2026 | $1.1 billion | Q3 FY2026: $898.0 million–$938.0 million | Raised |
| EPS, non-GAAP | Q4 FY2026 | $2.25 | Q3 FY2026: $1.77–$1.83 | Raised |
| Revenue, Americas Organic | Q4 FY2026 | Vertiv expects Q4 FY2026 Americas organic sales growth in the mid-50s. | — | — |
| Revenue growth, Organic | Q4 FY2026 | 50.0% | Q3 2026: 35.0% | Raised |
| Revenue | Q4 FY2026 | $4.4 billion | Q3 FY2026: $3.7 billion–$3.9 billion; reported $4.3 billion | Raised |
| Bookings | FY2026 | Vertiv expects robust orders growth in FY2026. | — | — |
| Free cash flow, non-GAAP | FY2026 | $2.7 billion | $2.4 billion–$2.6 billion | Raised |
| Operating margin, non-GAAP | FY2026 | 24.0% | 23.3%–24.3% | Raised |
| Operating income, non-GAAP | FY2026 | $3.5 billion | $3.3 billion–$3.4 billion | Raised |
| EPS, non-GAAP | FY2026 | $7.15 | $6.65–$6.75 | Raised |
| Revenue, Americas Organic | FY2026 | Vertiv expects FY2026 Americas organic sales growth in the high 40s. | — | — |
| Revenue | FY2026 | $14.7 billion | $13.8 billion–$14.2 billion | Raised |
| Capex growth | FY2026 | 4.00% | — | New |
| EPS growth, Non Gaap Growth | FY2026 | $0.69–$0.71 | — | New |
| EPS, GAAP | FY2026 | $6.29 | $5.82–$5.92 | Raised |
| EPS growth, Non Gaap Growth | Q4 FY2026 | $0.63–$0.67 | — | New |
| EPS, GAAP | Q4 FY2026 | $2.08 | Q3 2026: $1.80 | Raised |
| Capex growth, As Percentage of Revenue | FY2026 | 4.00% | — | New |
| EPS growth, Non Gaap; growth | FY2026 | $0.58–$0.61 | — | New |
| Revenue growth, Organic; non Gaap | FY2026 | 30.0%–32.0% | — | New |
| Free cash flow | FY2026 | $2.5 billion | $2.2 billion | Raised |
| Operating margin | FY2026 | 23.8% | 23.3% | Raised |
| Operating income | FY2026 | $3.3 billion | $3.2 billion | Raised |