Vertiv Raises 2026 Sales Outlook by $650 Million as Orders Grow More Than 100%
Key Facts
Vertiv and FedEx raised their 2026 outlooks after revenue and earnings growth in the third quarter, while SK hynix prepared to increase shipments of its latest generations of high-bandwidth memory. Vertiv said organic orders rose more than 100% year over year and that it raised its annual net sales outlook by $650 million. The company reported sales of $4.313 billion, up 61% from the third quarter of 2025. FedEx reported revenue of $22.9 billion in the quarter ended September 30, compared with $20.4 billion a year earlier. The figures reflect two different growth paths: strong infrastructure demand at Vertiv and improved parcel yields and volumes alongside cost reductions at FedEx.
Vertiv set its fiscal 2026 sales range at $14.45 billion to $14.85 billion and forecast adjusted diluted earnings per share of $7.10 to $7.20. Adjusted operating margin rose to 25.2% in the third quarter, up 2.9 percentage points from the same period a year earlier. Sales growth spanned regions, rising 75% in the Americas, 50% in Asia Pacific and 23% in Europe, the Middle East and Africa. The company's chief executive said, "We are in the middle of the largest infrastructure buildout, and it is accelerating." Vertiv linked its higher outlook to strong, visible demand as well as investment in capacity. The indicators suggest operating capacity is expanding alongside growth in orders and sales.
Vertiv expects fourth-quarter sales of $4.313 billion to $4.513 billion, with organic sales growth of 49% to 51% compared with the same quarter of 2025. The company's shares jumped about 15.1% in premarket trading on October 28 after it announced its results and outlook. They then closed at $242.94 that day. The share move followed results showing geographically broad growth and an improved operating margin, alongside a higher fiscal-year outlook. Capacity expansion remains part of the company's response to what it described as strong, visible demand.
At FedEx, adjusted diluted earnings per share rose to $3.74 in the third quarter, from $2.93 in the comparable period. The company raised its adjusted earnings-per-share outlook for calendar 2026 to a range of $18.00–$18.60, compared with a prior range of $16.90 to $18.10. It also raised its full-year revenue growth forecast to about 12% from about 11%. The company attributed the improved performance to higher parcel yields, increased volumes and continued structural cost reductions. FedEx said these factors were offset by pressure from transportation costs, wages, compensation expenses and changes in global trade policies. The chief executive said the company was committed to "disciplined operational execution to reduce the cost to serve while focusing on profitable growth."
FedEx repurchased about 6.3 million shares worth $2.0 billion between June and September 2026. The company kept its full-year capital spending forecast at $3.9 billion, directing investment toward improving network efficiency and modernizing its fleet, facilities and automation. Its shares closed at $304.58 on October 28. The company identified a next operational step in pricing adjustments, saying it would raise average parcel shipping rates by 5.9% effective January 4, 2027. The planned increase comes alongside efforts to reduce the cost to serve, while transportation and wage costs remain among the factors that weighed on quarterly results.
SK hynix's results disclosure focused on the memory market and its HBM4 generation shipment plan, rather than an annual outlook increase like those announced by Vertiv and FedEx. The company expects HBM4 to surpass HBM3E in shipment volume and revenue in the fourth quarter and to become the mainstream product. It also expects memory demand to continue exceeding supply through 2030. This outlook provides context for the production increase plans outlined in the disclosure, as the company expects its latest products to account for a growing share of shipments and revenue. The disclosures from the three companies thus combine strong quarterly results with forward-looking expectations, with growth driven by infrastructure, parcel shipping and semiconductor memory, respectively.