Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 29, 2026 · Beat 7 of last 7 quarters
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Vertiv's strong Q2 and raised guidance underscore the accelerating AI infrastructure buildout, with demand signals broad-based across regions and customer categories. The company's leadership in power architecture evolution (800V DC) and thermal management positions it to capture increasing content per megawatt as AI data centers scale. The timing shifts from complex large projects highlight the operational challenges of scaling infrastructure, but management's confidence and capacity investments signal sustained growth ahead.
Vertiv delivered strong Q2 results with net sales up 24% YoY to $3.274B, driven by 29% growth in the Americas and APAC, while EMEA returned to positive growth at 2%. Adjusted operating margin expanded 410 bps to 22.6%, and adjusted EPS rose 60% to $1.52. Free cash flow surged 234% to $925M, with conversion exceeding 150%. The company raised its full-year guidance across all metrics and highlighted new technology wins, including a collaboration with NVIDIA and Foxconn's VisionBay AI for Taiwan's first GB300 AI data center and the world's first 800V DC AI data center featuring NVIDIA Vera Rubin.
Management raised full-year 2026 guidance across all key metrics: net sales to $14.0B (up 37% YoY), adjusted diluted EPS to $6.70 (up 60% YoY), adjusted operating profit to $3.325B (up 59% YoY), and adjusted free cash flow to $2.5B (up 182% YoY). They expect full-year 2026 organic sales growth of 31%, with Americas high-30s, APAC low-30s, and EMEA low single digits. The company sees accelerating pipeline momentum across all regions and customer categories, with EMEA returning to growth in the second half. They are investing at the high end of their CapEx range (4% of sales) to expand capacity into 2027, and they remain confident in positive price-cost for the year despite tariff headwinds. Management acknowledged some Q2 revenue timing shifts from complex large projects and supply chain congestion, but expects these to resolve in the second half, with guidance described as prudent and not assuming 'all stars align.'
“The industry outlook is incredibly good because the digital age has decades to go. Our outlook is incredibly good and deservedly so. As we provide the picks and shovels for the digital age.”
on Industry outlook
“This is an example of early customer validation of our roadmap and supports the broad power architecture evolution. This is real. This has happened.”
on 800V DC collaboration with NVIDIA/Foxconn
“We are executing, we are investing ahead of the curve, and increasingly, our customers are asking us to help them architect their most complex infrastructures. that is the role we have earned. And it is the role we intend to further strengthen.”
on Customer role and strategy
Can you provide more detail on the timing shifts in Q2 revenues and supply chain congestion? Is this an ongoing issue given increasing complexity?
Giordano explained that complexity is increasing with larger, multidimensional projects and supply chain interdependencies, both external and internal. They are on a learning curve and progressing quickly, but they remain prudent in second-half guidance, not assuming all stars align. Craig added that they are seeing good signs of improvement and have assumed some congestion continues in the second half.
How much revenue was pushed out due to supply chain issues, and was it Vertiv-specific or customer-related?
Giordano said customer dynamics are similar to historical patterns, and the majority of the impact is from the complexity of large project deployments and supply chain sequencing. Craig clarified that the issues are confounding effects from both external and internal supply chains on large projects, and they are learning how to iron them out, with guidance not assuming perfection.
Can you provide confidence that the production disruptions are getting better, and what is the monthly cadence?
Giordano corrected the term 'disruption' to 'complexity' and said their ability to handle complexity is accelerating strongly. Craig noted they are seeing good signs of ratcheting up the learning curve and have assumed some congestion continues in the second half, making guidance prudent.