Vertiv Q2 profit beats estimates on AI demand, lifts 2026 outlook

Overview

• U.S. digital infrastructure firm's Q2 revenue rose 24% but missed analyst expectations

• Adjusted EPS for Q2 grew 60% and beat analyst expectations

• Company raised full-year 2026 guidance on strong demand and capacity expansion

Outlook

• Vertiv sees Q3 net sales of $3.65 bln to $3.85 bln

• Company expects full-year net sales of $13.8 bln to $14.2 bln

• Vertiv expects full-year adjusted diluted EPS of $6.65 to $6.75

Result Drivers

• STRONG DEMAND ENVIRONMENT - Co said robust demand for AI and general compute infrastructure drove sales growth

• OPERATIONAL EXECUTION - Higher margins attributed to operational execution, productivity, and favorable price-cost dynamics, including tariff management

• CAPACITY EXPANSION AND INVESTMENT - Co cited years of investment in technology, capacity, and customer partnerships as supporting growth

Company press release: ID:nPn5mY430a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 28 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electrical components equipment peer group is "buy"

• Wall Street's median 12-month price target for Vertiv Holdings Co is $376.00, about 39.5% above its July 28 closing price of $269.56

• The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 38 three months ago

Reuters Recommended Reads

• July 27 - Canada's Celestica Q2 results beat estimates on strong data center, cloud demand

• July 29 - Legrand raises 2026 sales growth guidance on data centre demand

• July 27 - Applied Digital beats quarterly revenue estimates on surging AI infrastructure demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)