Vertiv reported a strong first quarter with significant year-over-year growth in net sales, operating profit, and EPS, driven by robust demand in the data center market and successful execution. The company raised its full-year guidance, reflecting confidence in continued momentum and market share gains.
Net sales increased 30% year-over-year to $2,650 million, driven by 23% organic sales growth and 4% from acquisitions.
positiveAdjusted operating margin expanded 430 basis points to 20.8%, driven by operational leverage and positive price-cost dynamics.
positiveOperating cash flow increased 153% to $767 million, and adjusted free cash flow increased 147% to $653 million year-over-year.
positiveDiluted EPS grew 136% to $0.99, and adjusted diluted EPS grew 83% to $1.17.
positiveRaised full-year 2026 guidance for net sales, adjusted operating profit, adjusted diluted EPS, and adjusted free cash flow.
positiveEurope, Middle East & Africa (EMEA) segment net sales decreased 20.3% year-over-year, with an organic decrease of 29.4%.
attentionEMEA adjusted operating margin compressed 290 basis points to 16.6% compared to the prior year.
attentionInventories increased to $1,834.6 million from $1,456.5 million at the end of the prior year, a 26% increase.
attentionDeferred revenue increased to $2,461.8 million from $1,814.7 million at the end of the prior year, a 36% increase.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
Americas | N/A | — | — | — | +44.3% |
Asia Pacific | N/A | — | — | — | +12.0% |
Europe, Middle East & Africa | N/A | — | — | — | -29.4% |
| Total Revenue | $0.00M | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
| Metric | Value | Period | Specificity | vs Prior |
|---|---|---|---|---|
| net_sales | $3,250M - $3,450M | Q2 2026 | tight_range | New |
| organic_net_sales_growth | 20% - 24% | Q2 2026 | tight_range | New |
| adjusted_operating_profit | $690M - $730M | Q2 2026 | tight_range | New |
| adjusted_operating_margin | 20.7% - 21.7% | Q2 2026 | tight_range | New |
| adjusted_diluted_eps | $1.37 - $1.43 | Q2 2026 | tight_range | New |
| adjusted_diluted_eps_growth | 44% - 51% | Q2 2026 | tight_range | New |
| net_sales | $13,500M - $14,000M | FY2026 | tight_range | New |
| organic_net_sales_growth | 29% - 31% | FY2026 | tight_range | New |
| adjusted_operating_profit | $3,140M - $3,260M | FY2026 | tight_range | New |
| adjusted_operating_margin | 22.8% - 23.8% | FY2026 | tight_range | New |
| adjusted_diluted_eps | $6.30 - $6.40 | FY2026 | tight_range | New |
| adjusted_diluted_eps_growth | 50% - 52% | FY2026 | tight_range | New |
| adjusted_free_cash_flow | $2,100M - $2,300M | FY2026 | tight_range | New |
| adjusted_diluted_eps | $1.40 | Q2 2026 | point | New |
| adjusted_diluted_eps | $6.35 | FY2026 | point | New |
$5.0 billion · at the end of first quarter
0.2x · at the end of first quarter · target: net leverage
$2.1 billion · funded by notes issuance
$2.5 billion · funded by revolving credit facility
$2,150.6 million · March 31, 2026
$23.9 million · Three months ended March 31, 2026
$2,922.2 million · March 31, 2026
$2,892.1 million · December 31, 2025
We're seeing data center infrastructure requirements evolve significantly, with customers prioritizing optimized design, deployment speed, and operational efficiency - reshaping their approach to deployment.
This quarter's financial performance reflects our ability to meet customers at this critical moment with unique capabilities.
Our investments in technology and capacity, combined with strategic acquisitions, are translating into market share gains as customers demand faster deployment, greater reliability, and comprehensive services.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.