Vertiv (VRT)
NYSEIndustrialsElectrical Equipment & PartsSnapshot 2026-09-04
$280.53+4.35%
Close 2026-09-04 · 1-day change
NYSEIndustrialsElectrical Equipment & PartsSnapshot 2026-09-04
QuarterlyIQ Insights · VRT
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within industrials on a research-validated quality screen. As of 2026-09-04.
The screen ranks VRT against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Industrials names rated neutral grew net income 51% of the time over the next year (vs 60% for the rest of the cohort, n=9249).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Met or beat guidance 100% of the last 3 guided quarters · 17.9% avg surprise
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Focus on accelerating organic sales growth and adjusted diluted EPS growth, supported by operational execution and market demand expansion.
Stated as a priority in 6 of last 6 quarters. Revenue grew from $2,036 million in 2025-Q1 to $3,274 million in 2026-Q2, a 61% increase, with full year 2026 net sales guidance raised to $13.8B-$14.2B. Adjusted diluted EPS growth guidance for 2026 is 58%-61%, reflecting delivery on growth commitments.
“Net sales of $3,274 million, 24% higher than second quarter 2025; raised full year 2026 net sales guidance.”
“Expect full year 2026 net sales of $13,250 to $13,750 million, with organic sales growth of 27% to 29%.”
“Fourth quarter net sales of $2,880 million, 23% higher than fourth quarter 2024; raised full year 2025 guidance.”
“Third quarter net sales up 29% and organic net sales up 28% compared to prior year third quarter.”
“Net sales up 35%, operating profit up 32% and adjusted operating profit up 28%, each year-over-year.”
“First quarter net sales of $2,036 million, 24% higher than first quarter 2024, with organic net sales up 25%.”
Increase manufacturing capacity and engineering research and development investments to meet growing AI infrastructure market needs.
Stated as a priority in 5 of last 6 quarters. Management consistently emphasizes expanding manufacturing capacity and increasing ER&D investments to support AI-driven demand. While specific capital expenditure figures vary, the company expects 2026 capex at approximately 4.0% of revenue, reflecting delivery on capacity expansion plans.
“Vertiv is further accelerating capacity expansion and strategic investments to meet demand and capture market share.”
Acquire companies to strengthen engineering expertise and expand product offerings in thermal and liquid cooling technologies.
Stated as a priority in 3 of last 6 quarters. Vertiv completed acquisitions of Strategic Thermal Labs and ThermoKey in 2026-Q1 and Q2, respectively, enhancing its thermal and liquid cooling technology portfolio. These acquisitions align with management's stated strategy to strengthen technology leadership and product offerings.
“Closed acquisition of ThermoKey S.p.A. to strengthen thermal management capabilities.”
Drive margin expansion through operational execution, productivity improvements, and tariff mitigation efforts.
Stated as a priority in 6 of last 6 quarters. Adjusted operating margin improved from 16.5% in 2025-Q1 to 22.6% in 2026-Q2, reflecting operational execution, productivity gains, and tariff mitigation. The trajectory shows consistent margin expansion aligned with management's focus on efficiency.
“Adjusted operating margin of 22.6%, up 410 basis points compared to second quarter 2025.”
Generate robust operating and free cash flow to support growth investments and maintain a strong balance sheet.
Stated as a priority in 6 of last 6 quarters. Operating cash flow increased from $303.3 million in 2025-Q1 to $1.1 billion in 2026-Q2, with adjusted free cash flow similarly rising to $925 million in 2026-Q2. This demonstrates strong cash generation supporting growth and liquidity objectives.
“Operating cash flow of $1,100 million and adjusted free cash flow of $925 million, increases of 241% and 234% respectively.”
Over the trailing year it converted 2.00x of net income into operating cash flow. Historically, Industrials names rated robust grew net income 58% of the time over the next year (vs 54% for the rest of the cohort, n=4997).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, long-term interest rates, Fed net liquidity, real (inflation-adjusted) rates (low R² over the window).
33 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Industrials names rated volatile grew net income 58% of the time over the next year (vs 57% for the rest of the cohort, n=2592).
Not investment advice. As of 2026-09-04.
“Vertiv is strategically increasing ER&D investments and expanding production capacity to capitalize on opportunities.”
“Investing decisively, expanding manufacturing and services capacity and amplifying ER&D capabilities.”
“Accelerated ER&D and growth fixed cost investments; expanding global manufacturing capacity.”
“Investing in ER&D and capacity expansion to support growing needs, particularly AI infrastructure deployments.”
“Acquired Strategic Thermal Labs LLC to enhance liquid-cooling technologies and thermal validation expertise.”
“Closed acquisition of BMarko Structures, LLC to expand product portfolio.”
“Adjusted operating margin guidance of 18.5% - 19.5% for Q1 2026.”
“Adjusted operating margin of 23.2%, up 170 basis points compared to fourth quarter 2024.”
“Adjusted operating margin of 22.3%, up 220 basis points compared to third quarter 2024.”
“Adjusted operating margin was 18.5%, down 110 basis points compared to second quarter 2024.”
“Adjusted operating margin expanded 130 basis points to 16.5% in first quarter 2025 compared to first quarter 2024.”
“Cash from operating activities of $766.8 million.”
“Operating cash flow of $1,005 million and adjusted free cash flow of $910 million.”
“Operating cash flow of $508.7 million and adjusted free cash flow of $462 million.”
“Operating cash flow of $322.9 million and adjusted free cash flow of $277 million.”
“Operating cash flow of $303.3 million and adjusted free cash flow of $265 million.”