Vertiv CFO Says Fourth-Quarter Guide Carries 'Prudence' After Orders Rose Over 100%
Analysts pressed Vertiv on a roughly flat fourth-quarter revenue guide, and the CFO would not size 2027 growth or margins.
Vertiv's chief financial officer, Craig, told analysts on the company's third-quarter earnings call Wednesday that its fourth-quarter outlook builds in "prudence" and that it would not comment on 2027, even after organic orders more than doubled from a year earlier, CEO Gio Albertazzi said.
A flat sequence, and no 2027 number
Vertiv, which makes the power and cooling equipment and services that keep data centers running, guided fourth-quarter net sales to about $4.4 billion at the midpoint and adjusted earnings per share to $2.25, Craig said in prepared remarks. Third-quarter net sales were approximately $4.3 billion, up 61% from a year earlier, with adjusted EPS of $2.21.
An analyst from UBS noted that revenue usually steps up from the third to the fourth quarter, while the guide implies a roughly flat sequence. The analyst also asked why organic growth would not accelerate in 2027.
Craig said "there's always some prudence in the way that we look at our guide." On 2027, he said: "We won't comment on 2027." He pointed to good pipelines and an order book that looks good.
The 30% to 35% framework holds
An analyst from BNP Paribas asked whether exit margins are the starting point for next year. Craig said Vertiv would not discuss 2027 incrementals, the profit earned on each added dollar of sales, until it gives guidance next quarter. The aim stays at 30% to 35%, he said, with growth tending to pull the figure lower and steady state higher.
Elsewhere on the call, Craig described 30% as the level in ramp mode and 35% as the high end. He said Americas incrementals were lower in the second half than the first on favorable comparisons, a big capacity ramp and a product-heavy mix.
Second-quarter supply problems
An analyst from Wells Fargo asked how the second-quarter supply chain problems played out. Craig said some delayed revenue, capped at around $100 million to $150 million, slid into the third quarter as part of the recovery. He said Vertiv saw definite improvements and is still building resilience in its factories.
Raised 2026 outlook
Vertiv raised its full-year guidance across all key metrics, including net sales of $14.65 billion, up $650 million from the prior outlook, and adjusted EPS of $7.15. Adjusted operating margin is expected at 24%.
Albertazzi said Vertiv expects "continued significant above-market organic sales growth in 2027," without giving a figure.
Craig said Vertiv will provide 2027 guidance next quarter.
Sources
- Vertiv CEO Says ‘Largest Infrastructure Buildout’ Is Accelerating As Q3 Earnings Beat Estimates, Outlook Raised — Yahoo Finance
- Vertiv Reports Strong Third Quarter 2026 with Net Sales Growth of 61%, Organic Orders Growth over 100% and Diluted EPS Growth of 91% (Adjusted Diluted EPS Growth of 78%); Raises Full Year 2026 Guidance Across All Key Metrics – Company Announcement - FT.com — Financial Times
- Vertiv stock surges as orders double amid AI build-out: 'Evolving faster than ever' — Yahoo Finance
- Vertiv Stock Jumps 14% as Earnings Show Another Way to Play the AI Boom — Barron's
- Vertiv Non-GAAP EPS of $2.21 beats by $0.39, revenue of $4.31B beats by $550M (VRT:NYSE) — seekingalpha.com
