VRT · US
VRT.US: Q2'26 update — AI rack power & liquid cooling infrastructure
Vertiv posted Q2 2026 net sales of $3.274B (+24% YoY) with adjusted OM 22.6% (+410bps), diluted EPS $1.27 (+53%) and adjusted EPS $1.52 (+60%). FY26 guide raised: sales $13.8–14.2B, adjusted EPS $6.65–6.75, adjusted FCF $2.4–2.6B. Q2 revenue was slightly soft versus expectations (timing/supply), driving volatile trading. The “AI rack power + liquid cooling + PurgeRite acquisition” thesis is intact. See CLS cooling chain and SMCI server integration; NVDA GPU clusters anchor demand.
Cite a section with a deep link, e.g. /en/r/vrt-us-research#thesis
Q2 2026 snapshot
- Q2 net sales
- USD 3.3B
- Adjusted OM
- 0.2
- Diluted EPS
- USD 1.27
- Adjusted EPS
- USD 1.52
FY26 / Q3 guidance
- FY26 sales
- $13.8–14.2B
- FY26 adj EPS
- $6.65–6.75
- FY26 adj FCF
- $2.4–2.6B
- Q3 adj EPS
- $1.77–1.83
Thesis
Vertiv’s near-term pricing debate centers on AI rack power + liquid cooling + thermal management infrastructure. Q2 2026 validated that mix with $3.274B net sales (+24% YoY), adjusted OM 22.6% (+410bps), and adjusted EPS $1.52 (+60%). FY26 guide was raised across the board (sales $13.8–14.2B, adjusted EPS $6.65–6.75, adjusted FCF $2.4–2.6B), showing AI infrastructure demand still accelerating.
The premium holds only if:
- AI rack order backlog keeps building — repeatable pipeline tied to NVDA GPU cluster deployments, not one-off projects;
- Liquid cooling penetration rises — high-power GPU racks make liquid cooling standard, not optional;
- Adjusted OM expansion is sustainable — Q2 +410bps validates pricing power and mix improvement.
But Q2 revenue was slightly below expectations (timing/supply), and volatility reflects high expectations versus execution cadence. For cooling-chain context see CLS research.
Business
Model: Critical DC infrastructure — power, distribution, thermal/liquid cooling, plus services/software.
Flagships: High-density power/UPS/PDU; liquid cooling (incl. PurgeRite); services/DCIM.
Competitiveness: Power+thermal stack; higher adj. margins than pure ODMs.
Strategy: Raised FY26 guide; liquid-cooling penetration and project timing.
Value chain
Downstream DC facilities layer — rack power and cooling; complements ODM cooling parts.
Upstream: power electronics, thermal parts, PurgeRite capacity. Downstream: hyperscalers/colos/ODM partners. Risks: project timing on revenue recognition; cooling-part lead times.
Valuation
AI infrastructure themes drove a strong 2026 move. As of this note (2026-07-30), volatility picked up after Q2 revenue timing miss—valuation already prices some FY26 raise. Risk/reward is asymmetric post guide raise.
Valuation frame
| Metric | Status | Read |
|---|---|---|
| 盈利增长 | 强劲 | Q2 销售 +24% YoY；adj EPS +60% |
| 调整后 OM | 扩张 | 22.6%（+410bps YoY） |
| 估值 | 波动加大 | Q2 收入时序偏软后回调 |
| 相对 CLS | 互补 | VRT 偏电源/整柜；CLS 偏液冷组件 |
| 催化剂 | FY26 上修 | 销售 / EPS / FCF 全面上调 |
| 风险收益 | 高预期 | 执行节奏 vs AI 需求持续 |
Versus CLS: Vertiv is more complete on power and rack-level thermal; CLS skews liquid cooling components and CDU. Both compete/complement in the AI rack supply chain. Versus Eaton: traditional electrical giants also compete for AI power distribution share.
Financial trend (~24 months)
Eight-quarter revenue and gross margin with YoY and QoQ. Semi/AI hardware seasonality is secondary to supply, ASP, and order timing.
Revenue · last 8 quarters
Interactive chart available in the reader.
Gross margin · last 8 quarters
Interactive chart available in the reader.
Operations
Q2 2026 operations
Q2 P&L and segments
| Item | Q2 2026 | Note |
|---|---|---|
| 净销售 | $3.274B | +24% YoY；略低于预期 |
| 调整后 OM | 22.6% | +410bps YoY |
| 稀释 EPS | $1.27 | +53% YoY |
| 调整后稀释 EPS | $1.52 | +60% YoY |
| 收入时序 | 偏软 | 项目交付 / 供应节奏 |
Segment mix (illustrative)
| Segment | Revenue mix | Watchpoint |
|---|---|---|
| Critical Infrastructure | ~55% | 数据中心电源 / 热管理 |
| Integrated Solutions | ~30% | 整柜 / 模块化方案 |
| Services & Software | ~15% | 运维 / 监控 |
| AI 相关增量 | 最快增量 | Blackwell / Rubin 集群拉动 |
Takeaways:
- Adjusted OM 22.6% (+410bps) is the headline—validates pricing power and AI high-ASP product mix.
- Revenue $3.274B slightly missed — management cited project timing and supply chain cadence; backlog remains strong but revenue recognition lagged.
- Adjusted EPS $1.52 (+60%) shows margin expansion partly offset timing impact.
AI rack infrastructure
AI rack infrastructure is Vertiv’s most credible growth engine today. NVIDIA Blackwell / Rubin GPU clusters with rising per-rack power (30kW+) drive:
- High-density power and distribution — UPS / PDU / busway upgrades;
- Liquid cooling systems — CDU / cold plates / piping; PurgeRite acquisition strengthens capability;
- Thermal management and monitoring — rack-level temperature / flow monitoring and ops software.
Watch AI rack order backlog, liquid cooling penetration, turnkey integration with SMCI and other ODMs, and project delivery timing.
PurgeRite & product chain
The PurgeRite acquisition (2026) strengthens Vertiv’s liquid cooling capacity and IP—key incremental for FY26–FY27 liquid cooling penetration. Vertiv’s product chain covers:
- Critical Infrastructure — data center UPS, power distribution, thermal management (~55% revenue);
- Integrated Solutions — modular data centers, turnkey racks (~30%);
- Services & Software — ops monitoring, DCIM (~15%).
Versus CLS cooling chain: CLS skews CDU / cold plates / quick connects; Vertiv skews rack-level power + thermal + liquid cooling system integration. Both have hyperscaler supply-chain share—competitive/complementary dynamics need ongoing tracking.
Competition
Strategy / product / risk map
Three axes:
| Axis | Vertiv | CLS | Eaton |
|---|---|---|---|
| AI racks | Power + liquid cooling + rack thermal | Liquid cooling components / CDU | Traditional distribution + AI push |
| Integration | ODM partnerships (SMCI, etc.) | Direct to ODM / hyperscaler | Electrical system-level |
| Demand anchor | NVDA GPU cluster deployments | Liquid cooling penetration | AI power distribution share |
Under Giorgio Narazano, Vertiv focuses on high-growth AI infrastructure segments, bolsters liquid cooling via PurgeRite and similar deals, and maintains adjusted OM expansion. Q2 revenue timing is a near-term noise item; FY26 guide raise validates mid-cycle demand strength.
Peer comparison
| Company | Share / role | GM | Strength | Weakness |
|---|---|---|---|---|
| Vertiv (self) | AI rack power/cooling | Adj OM ~23% | Thermal + power stack | Project timing volatility |
| Celestica | CDU / rack cooling parts | Mfg OM ~8% | ODM attach | Lower margin pool |
| Eaton | Electrical / PDU | Mid-30s | Electrical scale | Less liquid-cooling focus |
| Super Micro | Server + DLC integrate | ~15% | Rack speed | Not facility infra |
Management
CEO Giordano Albertazzi since Jan 2023 (>24m); CFO David Fallon stable. No new material 24m change. Stability: steady.
Key management (24m)
| Role | Name | Since | 24m change |
|---|---|---|---|
| CEO | Giordano Albertazzi | 2023-01 | No change (CEO since Jan 2023) |
| CFO | David Fallon | 2020 | No change |
| Exec Chair / board | Rob Johnson (prior) / board | — | CEO transition completed >24m ago; ops stable |
Outlook
Company guide · FY26 / Q3
| Item | Guide | Note |
|---|---|---|
| FY26 销售 | $13.8–14.2B | 指引上修 |
| FY26 调整后 EPS | $6.65–6.75 | 指引上修 |
| FY26 调整后 FCF | $2.4–2.6B | 现金流改善 |
| Q3 销售 | $3.65–3.85B | 环比加速预期 |
| Q3 调整后 EPS | $1.77–1.83 | — |
Framework:
- FY26 sales $13.8–14.2B raise confirms AI infrastructure demand; adjusted FCF $2.4–2.6B improves cash-flow expectations.
- Q3 sales $3.65–3.85B implies sequential acceleration—key test whether Q2 timing miss was one-time.
- PurgeRite acquisition integration progress is a 2H26 incremental.
- Any NVDA GPU shipment delay or AI CapEx slowdown narrative directly affects Vertiv order cadence.
Scenarios
| Scenario | Conditions | Implication |
|---|---|---|
| Bull | Q3 sales >$3.85B; liquid cooling penetration accelerates; PurgeRite integration smooth | AI infrastructure leader narrative strengthens; upside continues |
| Base | FY26 roughly hits $13.8–14.2B; Q3 timing normalizes; OM holds 22%+ | Hold through volatility; track backlog and delivery |
| Bear | AI CapEx slows; project delays persist; CLS / Eaton take share | 20–30% multiple compression possible |
Positioning frame (research only): AI infrastructure allocation; avoid aggressive chase after Q2 timing miss. Track backlog, liquid cooling penetration, PurgeRite integration, Q3 revenue normalization.