Vertiv Builds Expected Inflation Into Quotes as Order Growth Accelerates Globally
Key Facts
Vertiv CFO Craig Chamberlain said the company includes expected inflation and commodity price changes in customer quotes as its order pipeline accelerates across North America and globally. Speaking at the Baird Global Industrial Conference, he said the pricing approach aims to cover the inflation the company expects and protect its margins, while customers continue to assess price alongside quality and service. He added that Vertiv does not believe it is losing market share and does not necessarily see customers pulling back. His comments reflect how the company is managing prices against expected costs, not confirmation that customers are accepting every price increase. The conference is being held in Chicago from November 10 to 12, 2026.
Chamberlain said the pricing process incorporates in advance the inflation or price changes the company expects, while the CEO said the expected pace of growth in the business pipeline had increased, as had its size. The CEO said the expansion extended beyond North America to global markets. Demand, management said, includes AI and traditional cloud computing, broadening the sources of growth feeding the order pipeline. He said, "The pace of growth in our pipeline has increased, and the pipeline itself has grown." Management links the pipeline's expansion to the need to increase production capacity while maintaining quality and manufacturing efficiency.
The pricing comments follow strong order growth in the third quarter of 2026, when Vertiv said organic orders increased by more than 100% year over year. Results showed sales growth across all three regions: 75% in the Americas, 50% in Asia Pacific, and 23% in Europe, the Middle East and Africa. Adjusted operating margin rose to 25.2%, up 290 basis points from the year-earlier period. The company attributed the margin improvement to operating leverage from higher sales and manufacturing productivity, partly offset by sales mix and growth investments. These indicators provide context for management's statement that pricing is intended to absorb expected inflation and protect margins as the business expands.
Vertiv had recorded order growth of about 252% year over year and 117% quarter over quarter in the fourth quarter of 2025, with an orders-to-sales ratio of about 2.9 times. Backlog at the end of that quarter reached about $15 billion, up nearly $7.8 billion, or 109%, from the same period a year earlier and 57% from the previous quarter. The company said at the time that global pipeline growth spanned its product technologies and regions, attributing it mainly to continued expansion in investment in AI and data center infrastructure. It also said in its annual results presentation that pricing exceeded inflation in 2025 and expected that trend to continue through 2026. That background shows the current pricing discussion is taking place amid a cycle of expanding demand and investment, while management remains tasked with balancing costs, margins and the ability to meet demand.
Vertiv said demand visibility, continued investment in production capacity and disciplined execution gave it confidence to raise its full-year sales outlook by $650 million. The company raised the midpoint of its fiscal 2026 sales forecast to $14.65 billion, with expected organic sales growth of 38%. For the fourth quarter of 2026, it expects revenue of between $4.313 billion and $4.513 billion and organic growth of between 49% and 51%. The company said it continues to expand production capacity and invest in next-generation technologies to meet demand. VRT shares closed at $194.22 on November 10, 2026, the latest closing price in the data provided.