Vertiv’s first quarter was marked by robust top-line growth, with management attributing most of the momentum to continued strength in North American data center investments and expanding demand for power and thermal management solutions. CEO Giordano Albertazzi pointed to “broad-based momentum across nearly all product lines,” particularly in the Americas, and highlighted gains from productivity improvements and strong operational leverage. However, a softer performance in EMEA and ongoing tariff headwinds tempered the overall results, with leadership acknowledging that some regional markets are still in the early stages of recovery.
Is now the time to buy VRT? Find out in our full research report (it’s free for active Edge members).
Vertiv (VRT) Q1 CY2026 Highlights:
- Revenue: $2.65 billion vs analyst estimates of $2.65 billion (30.1% year-on-year growth, in line)
- Adjusted EPS: $1.17 vs analyst estimates of $1.01 (15.7% beat)
- Adjusted EBITDA: $578.4 million vs analyst estimates of $539.5 million (21.8% margin, 7.2% beat)
- The company lifted its revenue guidance for the full year to $13.75 billion at the midpoint from $13.5 billion, a 1.9% increase
- Management raised its full-year Adjusted EPS guidance to $6.35 at the midpoint, a 5.5% increase
- Operating Margin: 16.6%, up from 14.3% in the same quarter last year
- Organic Revenue rose 22.6% year on year (miss)
- Market Capitalization: $117.2 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Vertiv’s Q1 Earnings Call
- Scott Davis (Melius Research) asked about the importance of prefab solutions and their impact on Vertiv’s business. CEO Giordano Albertazzi explained that prefabrication streamlines deployment, addresses labor shortages, and enables Vertiv to capture more value by integrating technology into turnkey solutions.
- Amit Daryanani (Evercore) questioned the drivers behind expected acceleration in organic growth for the second half of the year. Albertazzi and CFO Craig Chamberlin pointed to capacity additions and a strong backlog from prior orders as key levers, especially in EMEA and APAC.
- Jeffrey Sprague (Vertical Research Partners) inquired about the sustainability and margin profile of the service business. Albertazzi highlighted ongoing investments in local field teams and digital tools, while Chamberlin indicated incremental margins for services remain in the 30–35% range, similar to products.
- Nicole DeBlase (Deutsche Bank) sought clarity on EMEA recovery and pipeline strength. Albertazzi noted accelerating order activity and a chronic shortage of AI-capable data centers in the region, building management’s confidence in second-half improvement.
- Patrick Baumann (JPMorgan) asked about sequential operating margin trends amid new capacity and tariffs. Chamberlin said there will be a near-term dip due to capacity ramp-up, but full-year margins are expected to remain within the company’s historical range after mitigating tariff impacts.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be watching (1) how quickly new capacity investments translate into higher revenue, (2) the pace of EMEA and APAC demand recovery as AI projects come online, and (3) Vertiv’s ability to offset tariff and supply chain headwinds through pricing and sourcing initiatives. The evolution of the service business and the impact of recent acquisitions on product breadth will also be important to monitor.
Vertiv currently trades at $305.58, down from $312.44 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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