Vertiv shares crash 14% in pre-market after Q2 revenue misses estimates

Vertiv shares fell about 14% in premarket trading on Wednesday after the company’s second-quarter revenue missed Wall Street estimates. The data centre equipment maker reported net sales of $3.27 billion, up 24% from a year earlier. But analysts were expecting $3.38 billion. That small miss was enough to hurt the stock because Vertiv had already risen about 67% this year through Tuesday’s close.

The company did better on profit. Adjusted earnings rose to $1.52 a share, above analysts’ estimate of $1.43. Net income increased to $497.8 million, or $1.27 a share, from $324.2 million, or 83 cents a share, a year earlier.

Vertiv said revenue was affected by “minor timing shifts.” The company blamed temporary supply chain congestion and the way large projects are being executed in phases. As AI data centre projects become bigger and more complex, some revenue can move from one quarter to another.


CEO Giordano Albertazzi said the quarter reflected years of investment in technology, capacity and customer relationships.

The results show both the strength and risk of the AI infrastructure boom. Demand for Vertiv’s power and cooling systems remains strong as companies build more AI data centres. But these projects are large and complex, which can make quarterly revenue uneven.

Even though Vertiv raised its full-year guidance, investors were looking for a cleaner beat after the stock’s sharp rally this year. The revenue miss and comments on project timing raised concerns.

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Vertiv now expects full-year net sales of $13.8 billion to $14.2 billion, with the midpoint at about $14 billion. It also expects adjusted earnings of $6.65 to $6.75 a share for the year. For the third quarter, the company expects adjusted earnings of $1.77 to $1.83 a share.

Operating profit rose 44% to $637.9 million. Adjusted operating profit increased 51% to $738.4 million. Adjusted operating margin improved to 22.6% from 18.5% a year earlier, helped by productivity gains, better execution and pricing.

Cash flow was also strong. Operating cash flow more than tripled to $1.10 billion, while adjusted free cash flow rose 234% to $925 million. The company ended the quarter with $5.6 billion of liquidity and a net cash position.

Vertiv supplies power management, thermal management and cooling systems used in data centres, including high-density AI computing facilities. The company said customer demand remains strong globally and that it is expanding capacity to capture more growth.

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