Vertiv's customer prepayments doubled in six months, $1.8bn → $3.6bn — $1.82bn of the $1.87bn of first-half operating cash flow was money received in advance
Q2 2026 10-Q: revenue $3,274m (+24%), net income $498m (+54%). Current deferred revenue rose from $1,815m at December 31 to $3,634m at June 30; on the cash-flow statement the increase is +$1,823m (+$172m a year earlier). Inventory +73% ($1.46bn → $2.52bn), three acquisitions for $332m in Q2, higher capex
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Vertiv Form 10-Q for Q2 2026: statement of operations, balance sheet (deferred revenue, inventories), cash-flow statement (change in deferred revenue), revenue note (deferred-revenue opening/closing balances and amounts recognized), business-combination note (three Q2 acquisitions), MD&A on operating cash flow (working capital, deferred revenue) and investing (acquisitions, capex), IEEPA tariff refund claims
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Vertiv Holdings (VRT), which makes power, cooling and rack equipment for data centers, reported revenue of $3,274.3m for the second quarter of 2026, up 24% from a year earlier, and net income of $497.8m. The largest item on the cash-flow statement in the 10-Q filed on July 29 is not net income but the increase in deferred revenue: money customers paid before receiving equipment rose $1,822.7m in the first half.
What happened
Vertiv Holdings (VRT) makes power, cooling and rack equipment for data centers and trades as an AI-infrastructure stock.
Its Q2 2026 quarterly report (10-Q) shows revenue of $3,274.3m, up 24% from $2,638.1m a year earlier, operating income of $637.9m and net income of $497.8m (+54%). First-half net income was $887.9m.
Current deferred revenue on the balance sheet went from $1,814.7m at December 31 to $3,633.7m at June 30 — double in six months. On the first-half cash-flow statement the increase in deferred revenue is +$1,822.7m (+$171.5m a year earlier), equal to 98% of first-half operating cash flow of $1,866.6m. The company says working capital "provided $678.8 … primarily driven by deferred revenue".
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It signals demand — customers paying early to secure production slots — and it brings cash in first. But prepayments are a liability; when equipment ships they turn into revenue and the cash effect disappears. This article reports the share of cash flow that came from prepayments and its relationship to inventory and acquisitions; the criteria for judging it are in the subscriber section.
Why is operating cash flow twice net income?
First-half net income of $887.9m plus $292.4m of non-cash items and $678.8m from working capital (mainly deferred revenue) equals $1,866.6m. The $1,822.7m increase in deferred revenue exceeded the roughly $1bn outflow into inventory.
What did the company acquire?
Three acquisitions in Q2 for total consideration of $331.8m ($278.1m cash, $28.5m contingent consideration, $29.9m other); the 10-Q does not name them individually. In August 2025 it acquired Great Lakes (racks and cabinets) for $203.5m.
Where can I verify these numbers?
On SEC EDGAR: Vertiv's Q2 2026 Form 10-Q (accession 0001628280-26-050609), the balance sheet, cash-flow statement, the deferred-revenue table in the revenue note, the business-combination note and the liquidity section of MD&A.
How aiSwingX™ wrote this
We read the filing on SEC EDGAR in full — statements, notes, MD&A. Press releases and news are not used as sources.
Every figure is reconciled to its location in the filing and to XBRL data. One mismatch means no publication.
An editor reviews before publication; any later change is recorded in the revision history.
Vertiv Form 10-Q for Q2 2026: statement of operations, balance sheet (deferred revenue, inventories), cash-flow statement (change in deferred revenue), revenue note (deferred-revenue opening/closing balances and amounts recognized), business-combination note (three Q2 acquisitions), MD&A on operating cash flow (working capital, deferred revenue) and investing (acquisitions, capex), IEEPA tariff refund claims · SEC EDGAR · This article is not investment advice. Disclaimer
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