Vertiv Holdings (NYSE:VRT) shares are trading lower on Wednesday after the company reported mixed second quarter earnings results.

Adjusted EPS of $1.52, exceeding the analyst estimate of $1.42. Revenue of $3.274 billion came below the consensus estimate of $3.377 billion.

Earnings Snapshot

Net sales rose 24% year over year (Y/Y) in the quarter. Organic revenue rose 18% Y/Y, a 5% contribution from acquisitions, and a 1% benefit from favorable foreign exchange movements. Revenue performance was impacted by minor timing shifts due to temporary supply chain constraints and increasingly complex, multi-phase project execution.

Adjusted operating profit rose 51% Y/Y to $738 million in the quarter. Adjusted operating margin expanded 410 basis points Y/Y to 22.6%, driven by strong execution, productivity improvements, and favorable price-cost dynamics, including the impact of tariffs and related mitigation actions.

Supported by strong demand, expanding customer pipelines, and ongoing capacity investments, Vertiv raised its full-year sales outlook along with other key financial guidance metrics.

The company generated $1.1 billion in operating cash flow and $925 million in adjusted free cash flow, representing year-over-year increases of 241% and 234%, respectively. Vertiv ended the quarter with $5.6 billion in liquidity and a net cash position.

CEO Giordano Albertazzi said the company’s second quarter performance reflects the impact of sustained investments in technology, capacity expansion, and customer relationships. He highlighted accelerating demand for AI and general compute, noting that increasing technology complexity is driving greater requirements for power and thermal infrastructure.

Outlook

The company raised its FY2026 adjusted EPS guidance to $6.65-$6.75 from the previous range of $6.30-$6.40, above the analyst estimate of $6.48.

FY2026 sales guidance was also increased to approximately $14.0 billion from the prior range of $13.5 billion-$14.0 billion, compared with the consensus estimate of $13.867 billion.

For the third quarter, Vertiv expects adjusted EPS of $1.77-$1.83 versus the analyst estimate of $1.79, with sales projected at $3.650 billion-$3.850 billion compared with the consensus estimate of $3.710 billion.

VRT Stock Price Activity: Vertiv Holdings shares were down 13.38% at $233.50 on Wednesday, according to Benzinga Pro data.

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