---
title: "Vertiv (VRT) beat Q3 2026 estimates, yet shares sit far below their high"
canonical_url: https://www.stockexpertai.com/journal/2026-11-08/vertiv-vrt-beat-q3-2026-estimates-yet-shares-sit-far-below-their-high-cb638c260838
last_updated: 2026-11-09T04:12:05.663Z
section: "AI Signals"
author: "Stock Expert AI Research"
publisher: Stock Expert AI
tickers: VRT
content_type: journal-article
---

# Vertiv (VRT) beat Q3 2026 estimates, yet shares sit far below their high

_Vertiv's third-quarter 2026 revenue came in well above analyst estimates and margins improved, but the stock trades well under its 52-week high as investors weigh data center risks._

![Data cover: Vertiv (VRT) beat Q3 2026 estimates, yet shares sit far below their high](/public-objects/streetnews/2026-11-08/AI_SIGNALS-cover-3dd83963.jpg)
Stock Expert AI data cover: figures from Financial Modeling Prep; background is an illustrative public-domain photo, credited on the image.

Vertiv Holdings Co (VRT) reported third-quarter 2026 revenue of $4.31B, higher than a year earlier by 61.2% and above the analyst estimate of $3.75B. Even so, the shares closed at $182.86 on Nov. 6, 2026, well below the 52-week high of $379.94, so the story is a strong quarter against a market worried about the data center build-out. Figures are current as of Nov. 6-8, 2026 and cover the quarter ended Sept. 30, 2026.

## Key facts

- **Oct. 28, 2026:** Vertiv reported EPS of 2.21 against an estimate of 1.82, a beat of $0.39 (21.4%). Revenue was $4.31B against an estimate of $3.75B, a beat of $563.5M (15.0%).
- **Quarter ended Sept. 30, 2026:** operating income was $983.8M, net income $764.5M and diluted EPS 1.95 (net income was higher than a year earlier by 91.8%).
- **Quarter ended Sept. 30, 2026:** free cash flow (cash from operations minus capital spending) was $654.9M.
- **Nov. 6, 2026:** the stock closed at $182.86, up 3.47% on the day. The 52-week range is $147.82-$379.94.
- **Next earnings date:** Feb. 10, 2027, with an EPS estimate of 2.27 and a revenue estimate of $4.48B.
- **Stock Expert AI MoonshotScore V2:** 72.4, rated Strong.

| Metric | Q3 FY2026 (ended Sept. 30, 2026) | Year-ago Q3 FY2025 or estimate |
|---|---|---|
| Revenue | $4.31B | $2.68B year-ago; $3.75B estimate |
| Operating income | $983.8M | $548.3M year-ago |
| Net income | $764.5M | $398.5M year-ago |
| Diluted EPS | 1.95 | 1.02 year-ago |
| EPS vs estimate | 2.21 | 1.82 estimate |
| Product revenue | $3.64B | $2.21B year-ago |
| Service revenue | $675.7M | $461.4M year-ago |

## What happened

Vertiv makes the power and cooling equipment that keeps data centers running. On Oct. 28, 2026 it reported results for the third quarter ended Sept. 30, 2026. Revenue of $4.31B beat the analyst estimate by $563.5M, and EPS of 2.21 beat the estimate of 1.82.

Two EPS figures appear in our data. The 2.21 is the figure compared with analyst estimates. The 1.95 is diluted EPS from the filing. Companies often report an adjusted number that leaves out certain items, which may explain the gap, but our data does not confirm the reason.

Both revenue lines grew. Product revenue (the equipment itself) was $3.64B, up from $2.21B in the year-ago quarter. Service revenue (maintenance and support) was $675.7M, up from $461.4M. Equipment drove most of the growth, which fits a period when customers are building new capacity.

By region, the Americas segment brought in $3.00B, Asia Pacific $1.01B and EMEA (Europe, Middle East and Africa) $823.7M. The Americas were the largest part of the quarter by a wide margin.

### The trend over the last five quarters

Here the trend matters, because the quarter did not come from nowhere. Revenue was lower in Q1 FY2026 than in Q4 FY2025 and has risen each quarter since.

| Quarter ended | Revenue | Gross margin | Operating margin | Net income |
|---|---|---|---|---|
| Sept. 30, 2025 | $2.68B | 37.8% | 20.5% | $398.5M |
| Dec. 31, 2025 | $2.88B | 38.9% | 21.1% | $445.6M |
| March 31, 2026 | $2.65B | 37.7% | 16.4% | $390.1M |
| June 30, 2026 | $3.27B | 37.7% | 19.5% | $497.8M |
| Sept. 30, 2026 | $4.31B | 38.1% | 22.8% | $764.5M |

Gross margin (revenue left after the direct cost of making products) barely moved across these quarters. Operating margin (profit after running costs, as a share of revenue) did move: it fell to 16.4% in the March 2026 quarter and recovered to 22.8% in the latest one, the highest in this series. That pattern suggests higher volume spread fixed costs over more sales, though our data has no call commentary to confirm management's own explanation.

Cash flow was solid but did not rise as fast as profit. Free cash flow was $654.9M in the latest quarter, compared with $925.3M in the June 2026 quarter, $652.8M in the March 2026 quarter, $883.9M in the December 2025 quarter and $462.0M in the September 2025 quarter. Operating cash flow was $794.0M in the latest quarter, with capital spending of $139.1M. Vertiv bought back no stock in any of these quarters and paid dividends of about $24.0M in the latest one.

The balance sheet shows cash and short-term investments of $3.71B against total debt of $3.27B. Net debt is shown as negative $244.7M, which means cash exceeds debt (a net cash position). Shareholders' equity was $5.50B.

## Why it matters for investors

**Valuation.** On a trailing-12-month basis, Vertiv's P/E (price divided by earnings per share) is 33.43, price/sales is 5.37, EV/EBITDA is 23.16 and price/free cash flow is 22.59. The dividend yield is 0.1% and net margin is 16.0%. Here is how it compares with peers in our data:

| Company | Market cap | P/E | Net margin |
|---|---|---|---|
| Vertiv (VRT) | $70.41B | 33.43 | 16.0% |
| ABB Ltd (ABBNY) | $146.97B | 29.56 | 13.5% |
| Eaton (ETN) | $132.72B | 34.07 | 12.2% |
| Delta Electronics Thailand (DLEGF) | $69.85B | 76.24 | 11.6% |
| Forgent Power Solutions (FPS) | $5.93B | 68.52 | 5.8% |

Vertiv's P/E is close to Eaton's and below the two smaller peers, while its net margin is the highest in this group.

**Analysts.** Of 23 ratings, 21 are Buy, 1 is Hold and 1 is Sell, for a consensus of "Buy". Analyst price targets average $361.94, with a median of $357.00, a high of $500.00 and a low of $300.00. Every target is well above the Nov. 6 price of $182.86. Targets are opinions and can be revised quickly. In the last 30 days RBC Capital, TD Cowen, Bernstein, Citigroup and Wells Fargo each maintained positive ratings on Oct. 29, 2026, while GLJ Research maintained its Sell on Nov. 2, 2026.

For later periods, analysts estimate revenue of $4.78B and EPS of 2.41 for the period ending March 30, 2028 (5 analysts), and revenue of $5.70B and EPS of 2.96 for the period ending June 30, 2028 (6 analysts).

**MoonshotScore.** Stock Expert AI's MoonshotScore V2 is 72.4 (Strong). Measured against its sector, growth scores 95 and quality 89, which matches the revenue and margin story above. Safety scores 50, momentum 32 and valuation 31. The weak momentum score reflects the share price falling far from its high, and the low valuation score says the stock is not cheap compared with sector peers.

## What could go wrong

- **Data center demand.** Recent headlines raise concerns about the AI data center pipeline, including a warning from David Sacks that it could dry up and a report of a Texas data center freeze. A Seeking Alpha piece argues that a recent selloff prices in a data center bust that Vertiv's order book does not show. These are third-party opinions and we have not verified them.
- **Valuation.** A P/E of 33.43 leaves less room for disappointment. The FMP discounted cash flow model, an automated estimate of what future cash flows are worth today, gives a value of $17.34 per share, far below the market price. Such models are very sensitive to their assumptions, so treat this as a caution and not a verdict.
- **Insider selling.** Among the 30 most recent Form 4 filings, those in the last 90 days show 0 open-market purchases and 8 sales. Insider sales have many causes, including planned selling, so this alone says little.
- **Financial strength.** The Piotroski score (a 0-9 measure of financial health) is 5, which is middling, while the Altman Z-score is 4.96, which is generally read as low bankruptcy risk.
- **Cash conversion.** Free cash flow in the latest quarter was lower than in the June 2026 quarter even though profit was much higher.

## What to watch next

- **Feb. 10, 2027:** the next earnings report, against an EPS estimate of 2.27 and a revenue estimate of $4.48B. Revenue has risen each quarter since March 2026, so the question is whether that continues.
- **Operating margin:** whether it holds near the latest 22.8% as volume changes.
- **Cash flow:** whether free cash flow catches up with profit.
- **Data center news:** any further state-level restrictions or changes in AI spending plans from large customers.
- **Capital use:** Vertiv has shown no buybacks in the last five reported quarters, so watch whether its net cash position goes toward investment or shareholder returns.

## Frequently asked questions

## Q: Did Vertiv beat earnings estimates in the third quarter of 2026?

Yes. For the quarter ended Sept. 30, 2026, Vertiv (VRT) reported revenue of $4.31B against an analyst estimate of $3.75B, and EPS of 2.21 against an estimate of 1.82. The report came out on Oct. 28, 2026.

## Q: Why is Vertiv stock far below its 52-week high after a strong quarter?

Our data does not give a single cause. Vertiv closed at $182.86 on Nov. 6, 2026, against a 52-week range of $147.82-$379.94. Recent third-party headlines point to worries about the AI data center build-out and an election-period selloff. Our MoonshotScore shows weak momentum (32) and valuation (31) but strong growth (95) and quality (89).

## Q: What do analysts expect from Vertiv next?

For the next report, due Feb. 10, 2027, analysts estimate EPS of 2.27 and revenue of $4.48B. The average analyst price target is $361.94, with targets from $300.00 to $500.00. Of 23 ratings, 21 are Buy. This is analyst opinion, not a forecast from Stock Expert AI.

## What our data could not verify

We had no company release or call transcript for this piece, so we could not confirm management's stated reasons for the results, its guidance, or the cause of the gap between the two EPS figures. Headline claims about data center demand are third-party views.

**Sources:** Stock Expert AI data (MoonshotScore, FMP financial statements, estimates, ratings and valuation as of Nov. 6-8, 2026). Third-party reports: 247wallst.com and Seeking Alpha headlines, used for context only.

*This is educational content, not investment advice. Past performance does not guarantee future results.*

## Related Tickers
- [VRT](https://www.stockexpertai.com/stock/vrt)

## Sources
- [Stock Expert AI VRT page: quote, financials and MoonshotScore](https://www.stockexpertai.com/stock/vrt)
- [247wallst.com: David Sacks Warns the AI Data Center Pipeline Could Dry Up. Here's What's at Stake](https://247wallst.com/investing/2026/11/08/david-sacks-warns-the-ai-data-center-pipeline-could-dry-up-heres-whats-at-stake/)
- [247wallst.com: America's AI Spending Boom Just Crossed a Staggering $1 Trillion Milestone](https://247wallst.com/investing/2026/11/08/americas-ai-spending-boom-just-crossed-a-staggering-1-trillion-milestone/)
- [247wallst.com: Texas Data Center Freeze: Is Vistra a Better Buy Than Vertiv?](https://247wallst.com/investing/2026/11/07/texas-data-center-freeze-is-vistra-a-better-buy-than-vertiv/)
- [seekingalpha.com: Vertiv: The Election Selloff Is Pricing In A Data Center Bust That The Order Book Doesn't Show](https://seekingalpha.com/article/4964560-vertiv-the-election-selloff-is-pricing-in-a-data-center-bust-that-the-order-book-doesnt-show)

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_Written by Stock Expert AI's research desk with AI assistance. Figures come from FMP data and the official sources cited in the article. Educational research, not financial advice._