Revenue growth accelerated to 24.1% in 2026Q2, with gross margin expanding to 37.7% and operating margin reaching 19.5%, reflecting strong operating leverage and a favorable mix shift toward higher-margin liquid cooling and services.
Vertiv Holdings Co (VRT) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Sales/Revenue | 11.48B | 10.23B | 8.01B | 6.86B | 5.69B | 5B | 4.37B | 4.43B | 4.29B | 3.88B | 3.94B |
| Revenue Growth % | 26.23% | 27.69% | 16.74% | 20.59% | 13.87% | 14.36% | -1.37% | 3.4% | 10.47% | -1.63% | - |
| Cost of Goods Sold | 7.17B | 6.72B | 5.26B | 4.64B | 4.29B | 3.62B | 3.03B | 3.11B | 2.87B | 2.57B | 2.53B |
| COGS % of Revenue | - | 65.64% | 65.64% | 67.67% | 75.4% | 72.42% | 69.23% | 70.13% | 66.86% | 66.16% | 64.22% |
| Gross Profit | 4.31B | 3.51B | 2.75B | 2.22B | 1.4B | 1.38B | 1.34B | 1.32B | 1.42B | 1.31B | 1.41B |
| Gross Margin % | 37.52% | 34.36% | 34.36% | 32.33% | 24.6% | 27.58% | 30.77% | 29.87% | 33.14% | 33.84% | 35.78% |
| Gross Profit Growth % | - | 27.68% | 24.04% | 58.48% | 1.59% | 2.48% | 1.6% | -6.8% | 8.21% | -6.97% | - |
| Operating Expenses | 2.11B | 1.62B | 1.37B | 1.31B | 1.18B | 1.11B | 1.01B | 1.1B | 1.04M | 1.28K | 303.42K |
| OpEx % of Revenue | - | 15.81% | 17.15% | 19.12% | 20.7% | 22.19% | 23.07% | 24.84% | 0.02% | 0% | 0.01% |
| Selling, General & Admin | 1.83B | 1.62B | 1.02B | 1.01B | 896.3M | 842.6M | 779.8M | 871.4M | 1.04M | 1.28K | 303.42K |
| SG&A % of Revenue | - | 15.81% | 12.75% | 14.7% | 15.75% | 16.86% | 17.84% | 19.67% | 0.02% | 0% | 0.01% |
| Research & Development | 209.7M | 0 | 352.1M | 303.5M | 282M | 266.4M | 228.6M | 229.4M | 198.3M | 166.5M | 129.4M |
| R&D % of Revenue | - | - | 4.39% | 4.42% | 4.95% | 5.33% | 5.23% | 5.18% | 4.63% | 4.29% | 3.28% |
| Other Operating Expenses | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -198.3M | -166.5M | -129.4M |
| Operating Income | 2.2B | 1.9B | 1.38B | 906.9M | 222M | 269.4M | 336.6M | 223M | -1.04M | 60.1M | -303.42K |
| Operating Margin % | 19.12% | 18.54% | 17.21% | 13.21% | 3.9% | 5.39% | 7.7% | 5.03% | -0.02% | 1.55% | -0.01% |
| Operating Income Growth % | - | 37.58% | 52.03% | 308.51% | -17.59% | -19.96% | 50.94% | 21606.5% | -101.73% | 19907.66% | - |
| EBITDA | 2.54B | 2.21B | 1.66B | 1.18B | 524.4M | 496.4M | 539.7M | 425.9M | 241.46M | 456.4M | 160.3M |
| EBITDA Margin % | 22.13% | 21.56% | 20.67% | 17.16% | 9.21% | 9.93% | 12.35% | 9.61% | 5.63% | 11.76% | 4.06% |
| EBITDA Growth % | 35.95% | 33.2% | 40.57% | 124.62% | 5.64% | -8.02% | 26.72% | 76.38% | -47.09% | 184.72% | - |
| D&A (Non-Cash Add-back) | 345.1M | 308.6M | 277M | 271M | 302.4M | 227M | 203.1M | 202.9M | 242.5M | 396.3M | 160.6M |
| EBIT | 2.18B | 1.83B | 915.8M | 752.7M | 314.3M | 256.8M | -104.2M | 206.1M | 6.37M | -1.28K | -303.42K |
| Net Interest Income | -52.5M | -86.1M | -150.4M | -219M | -147.3M | -90.6M | -150.4M | -310.4M | 0 | 0 | 0 |
| Interest Income | 4.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 56.9M | 86.1M | 150.4M | 219M | 147.3M | 90.6M | 150.4M | 310.4M | 0 | 0 | 0 |
| Other Income/Expense | -81.5M | -155.1M | -613.4M | -373.2M | -55M | -103.2M | -591.2M | 0 | 7.41M | -467.2M | -50M |
| Pretax Income | 2.11B | 1.74B | 765.4M | 533.7M | 167M | 166.2M | -254.6M | -104.3M | 6.37M | -407.1M | 250.7M |
| Pretax Margin % | 18.41% | 17.03% | 9.55% | 7.78% | 2.93% | 3.33% | -5.83% | -2.35% | 0.15% | -10.49% | 6.36% |
| Income Tax | 381.7M | 409.1M | 269.6M | 73.5M | 90.4M | 46.6M | 72.7M | 36.5M | 1.34M | 19.7M | 140.1M |
| Effective Tax Rate % | 18.06% | 23.49% | 35.22% | 13.77% | 54.13% | 28.04% | -28.55% | -35% | 21.03% | -4.84% | 55.88% |
| Net Income | 1.73B | 1.33B | 495.8M | 460.2M | 76.6M | 119.6M | -327.3M | -140.8M | 5.03M | -1.28K | -303.42K |
| Net Margin % | 15.09% | 13.03% | 6.19% | 6.71% | 1.35% | 2.39% | -7.49% | -3.18% | 0.12% | 0% | -0.01% |
| Net Income Growth % | 113.22% | 168.82% | 7.74% | 500.78% | -35.95% | 136.54% | -132.46% | -2898.79% | 394359.25% | 99.58% | - |
| Net Income (Continuing) | 1.73B | 1.33B | 495.8M | 460.2M | 76.6M | 119.6M | -327.3M | -140.8M | 5.03M | -1.28K | -303.42K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.41 | 3.41 | 1.28 | 1.19 | -0.04 | 0.34 | -1.07 | -1.19 | 0.06 | 0.00 | -0.00 |
| EPS Growth % | 111.48% | 166.41% | 7.56% | 3248.15% | -111.12% | 131.78% | 10.08% | -2141.17% | - | - | - |
| EPS (Basic) | - | 3.49 | 1.32 | 1.21 | -0.04 | 0.34 | -1.07 | -1.19 | 0.06 | 0.00 | -0.00 |
| Diluted Shares Outstanding | 392.75M | 390.65M | 386.33M | 386.23M | 378.22M | 355.54M | 307.08M | 118.26M | 86.25M | 86.25M | 69M |
| Basic Shares Outstanding | 384.56M | 381.71M | 376.42M | 380.14M | 376.73M | 355.54M | 307.08M | 118.26M | 86.25M | 86.25M | 69M |
| Dividend Payout Ratio | - | 5% | 8.51% | 2.06% | 4.96% | 3.18% | - | - | - | - | - |
Quick answers to the most common questions about buying VRT stock.
For fiscal year 2025, Vertiv Holdings Co (VRT) reported total revenue of $10.23B. This represents a 159.4% increase compared to $3.94B in 2016.
Vertiv Holdings Co (VRT) is profitable, generating $1.33B in net income for the fiscal year ending 2025 with a net profit margin of 13.0%.
Vertiv Holdings Co (VRT) reported an operating income of $1.90B, resulting in an operating profit margin of 18.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Vertiv Holdings Co (VRT) generated $3.51B in gross profit for the year, representing a gross profit margin of 34.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Hyperscaler concentration and supply chain
Metrics are mathematically derived from official filings.
AI-Driven Revenue Acceleration
Vertiv's revenue growth accelerated to 24.1% year-over-year in 2026Q2, up from 12.6% in 2024Q2, reflecting sustained hyperscaler demand for liquid cooling and power infrastructure, as reported in the latest quarterly filings.
The sequential revenue step-up from $2.6B in 2026Q1 to $3.3B in 2026Q2, a 27% quarter-over-quarter jump, suggests a sharp acceleration in order conversion, likely tied to AI data center buildouts. Growth durability appears supported by a record backlog, though investors should monitor whether this pace is sustainable given potential customer concentration among a few cloud giants.
Gross Margin Expansion on Mix Shift
Gross margin improved from 31.5% in 2024Q1 to 37.7% in 2026Q2, a 620 basis point expansion, as per financial statements, indicating a favorable shift toward higher-margin liquid cooling and services.
The margin uplift appears driven by pricing power and product mix, with liquid cooling systems commanding premium pricing. However, the sustainability of this expansion warrants scrutiny, as input cost volatility in copper and steel could pressure margins if price escalation clauses are insufficient.
Operating Leverage Driving Margin Upside
Operating margin expanded from 12.4% in 2024Q1 to 19.5% in 2026Q2, with operating income growing 41% sequentially in 2026Q2, as reported, indicating strong operating leverage as SG&A scales slower than revenue.
SG&A as a percentage of revenue declined from roughly 19% in 2024Q1 to 15% in 2026Q2, reflecting disciplined cost control and fixed-cost absorption. The 2026Q2 operating margin of 19.5% is near the peak of the last ten quarters, suggesting that the company is efficiently converting incremental revenue into profit, though investors should watch for potential re-investment in R&D or sales capacity.
Earnings Quality Bolstered by Tax and SBC
Net margin jumped to 15.2% in 2026Q2 from 6.3% in 2024Q4, partly due to a low effective tax rate, while stock-based compensation remained modest at $13.8M, as per income statement data.
The effective tax rate appears to have normalized, boosting net income, but the 2024Q4 net margin of 6.3% was depressed by a tax-related charge. SBC is minimal relative to net income (less than 3%), indicating that reported EPS is not significantly diluted by equity compensation. However, the EPS miss in the latest quarter against raised guidance suggests that non-operating items or timing may have affected reported earnings, warranting closer examination.
R&D Investment Signals Strategic Shift
R&D spending, which was negligible in several quarters, surged to $209.7M in 2025Q3 and $352.1M in 2024Q4, as per filings, indicating a strategic pivot toward liquid cooling and high-density power innovation.
The intermittent R&D reporting likely reflects reclassification or project-based spending, but the elevated levels in 2024Q4 and 2025Q3 suggest significant investment in next-generation thermal management. This investment may pressure near-term margins but appears necessary to maintain a competitive edge in the rapidly evolving AI infrastructure market. Investors should monitor whether R&D intensity remains elevated and translates into sustained product differentiation.
2025Q1: The Turning Point
The inflection occurred in 2025Q1, when revenue growth accelerated to 24.2% and operating margin jumped to 14.2% from 12.4% in 2024Q1, as reported, marking the onset of AI-driven demand.
This quarter saw a significant step-up in both revenue and profitability, coinciding with the ramp in hyperscaler capital expenditures for AI data centers. The subsequent quarters have maintained this momentum, with operating margins consistently above 17%, suggesting that the business has entered a higher growth and margin regime. The lasting impact is a structural shift toward liquid cooling, which may sustain the improved profitability profile.
Sustainability of AI-Driven Growth Questioned
Despite 24% revenue growth in 2026Q2, the EPS miss against raised guidance raises concerns about execution and margin sustainability, as per the latest earnings report, potentially signaling supply chain constraints or customer mix shifts.
Short-sellers might argue that the growth is concentrated among a few hyperscalers, making revenue vulnerable to capex pauses. Additionally, the gross margin expansion to 37.7% may be temporary if input costs rise or competition intensifies. The low debt-to-equity ratio of 0.86% appears anomalous for the industry and may indicate a recent recapitalization, but it also suggests financial flexibility. Investors should monitor backlog conversion and customer concentration as key risk indicators.