Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Net Sales | $4.3 billion | up 61% |
| Adjusted Operating Profit | $1 billion | up 83% |
| Adjusted Diluted EPS | $2.21 | up 78% |
| Adjusted Free Cash Flow | $652 million | up 50% |
Guidance and outlook
- Full year 2026 net sales expected at $14.65 billion.
- Full year 2026 adjusted diluted EPS expected at $7.15.
- Full year 2026 adjusted operating profit expected to be more than $3.5 billion.
- Full year 2026 adjusted free cash flow expected at $2.7 billion.
- Q4 2026 net sales expected at $4.4 billion.
- Q4 2026 adjusted diluted EPS expected at $2.25.
How management sounded
Positive (+7 on our -10 to +10 scale). Management raised full-year guidance across all metrics and emphasized strong organic order growth of over 100% while expanding capacity. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Order Growth and Market Share
Asked: Amit Daryanani from Evercore asked if the 100% plus order growth represents catch-up demand or market share gains.
Answer: Management stated the growth reflects strong industry belief in Vertiv's technology and execution rather than catch-up demand.
Supply Chain and Quality
Asked: Scott Davis from Melius Research asked about market chatter regarding product quality issues and supply chain constraints.
Answer: Management noted that quality data is positive and they are seeing constant improvements as they scale new products.
800-Volt Roadmap
Asked: Mark Delaney from Goldman Sachs asked about the momentum and impact of 800-volt products for 2027.
Answer: The company is on track with its roadmap, with customer validation occurring in 2027 and market deployment expected in 2028.
Capital Allocation
Asked: David Tarantino from KeyBanc asked about capital allocation strategy and the Utility Innovation Group acquisition.
Answer: The company prioritizes investing in internal capabilities and capacity, while maintaining flexibility for inorganic plays like the UIG acquisition.
What to watch before the next call
- Execution of capacity expansion projects across global regions to meet backlog demand.
- Progress on the industrialization and customer validation of 800-volt product lines.
- Management of pacing items such as power availability and permitting for data center construction.
