WESCO International (NYSE:WCC) Posts Earnings Results, Beats Expectations By $1.07 EPS

Key Points

• WESCO exceeded quarterly expectations, reporting $5.77 in adjusted EPS versus the $4.70 consensus and $7.23 billion in revenue versus estimates of $6.87 billion. Revenue rose 16.6% year over year, while adjusted EBITDA increased 33% to $562 million.
• Data centers were a major growth driver, with sales up 55% to $1.8 billion and CSS backlog rising approximately 140%. Growth also broadened across electrical and electronic solutions, utility, construction, industrial, and OEM markets.
• Management sharply raised its 2026 outlook to 13%–14% organic sales growth, $26.8 billion–$27.0 billion in revenue, a 7.2% adjusted EBITDA margin, and $18.00–$18.50 in adjusted EPS.

WESCO International (NYSE:WCC - Get Free Report) posted its quarterly earnings data on Thursday. The technology company reported $5.77 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.70 by $1.07, FiscalAI reports. The company had revenue of $7.23 billion for the quarter, compared to the consensus estimate of $6.87 billion. WESCO International had a net margin of 2.84% and a return on equity of 14.95%. The firm's revenue was up 16.6% compared to the same quarter last year. During the same period last year, the company earned $3.92 earnings per share.

Here are the key takeaways from WESCO International's conference call:

• WESCO reported record third-quarter results, with organic sales up 17% to $7.2 billion, adjusted EBITDA up 33% to $562 million, EBITDA margin expanding 100 basis points to 7.8%, and adjusted EPS up 47% to $5.77.
• Data center demand remains a major growth engine, with sales up 55% year over year to $1.8 billion and CSS backlog up approximately 140%; management said the business is now margin-accretive and increasingly spans hyperscale, multi-tenant, enterprise, private AI, and edge infrastructure.
• Growth is broadening beyond data centers. EES sales rose 18%, driven by OEM, construction, and industrial demand, while UBS sales increased 6%, utility grew at a high-single-digit rate, and backlog reached records across all three business units.
• WESCO significantly raised its 2026 outlook to 13%–14% organic sales growth, approximately $26.8 billion–$27.0 billion in sales, 7.2% adjusted EBITDA margin, and $18.00–$18.50 adjusted EPS; October sales per workday were up in the high teens, though fourth-quarter guidance reflects seasonal factors and continued business investment.
• Free cash flow was $184 million and net leverage improved to 2.8 times from 3.4 times at year-end. Management expects mid- to high-single-digit sales growth and continued margin expansion in 2027, but will provide detailed guidance with fourth-quarter results.

WESCO International Stock Performance

WCC traded up $17.95 during trading on Thursday, hitting $365.17. The stock had a trading volume of 1,483,991 shares, compared to its average volume of 608,297. WESCO International has a one year low of $221.43 and a one year high of $388.64. The company has a debt-to-equity ratio of 1.13, a current ratio of 2.09 and a quick ratio of 1.23. The firm has a market cap of $17.79 billion, a price-to-earnings ratio of 25.24, a P/E/G ratio of 1.90 and a beta of 1.54. The company has a 50 day moving average price of $350.06 and a 200-day moving average price of $326.18.

WESCO International Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Friday, September 11th were issued a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend was Friday, September 11th. WESCO International's dividend payout ratio (DPR) is presently 13.82%.

Insider Transactions at WESCO International

In other WESCO International news, Director Laura K. Thompson sold 270 shares of the firm's stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $368.45, for a total transaction of $99,481.50. Following the transaction, the director owned 10,720 shares in the company, valued at $3,949,784. This trade represents a 2.46% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Akash Khurana sold 3,400 shares of WESCO International stock in a transaction on Monday, August 17th. The shares were sold at an average price of $366.78, for a total value of $1,247,052.00. Following the completion of the transaction, the executive vice president directly owned 27,404 shares of the company's stock, valued at $10,051,239.12. This represents a 11.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 2.60% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have issued reports on WCC. Stephens upgraded shares of WESCO International from an "equal weight" rating to an "overweight" rating and lifted their price target for the company from $350.00 to $400.00 in a research note on Tuesday, July 14th. Wall Street Zen upgraded shares of WESCO International from a "hold" rating to a "buy" rating in a research note on Saturday, October 24th. Barclays raised their price objective on WESCO International from $390.00 to $437.00 and gave the company an "overweight" rating in a report on Monday, October 12th. Royal Bank Of Canada lifted their target price on WESCO International from $430.00 to $435.00 and gave the company an "outperform" rating in a research report on Wednesday, October 14th. Finally, Zacks Research cut WESCO International from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 19th. Seven equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, WESCO International presently has a consensus rating of "Moderate Buy" and an average target price of $402.83.

About WESCO International

WESCO International, Inc is a business-to-business provider of electrical, communications, security, and supply chain solutions. The company distributes products used in electrical and electronic systems, including wire and cable, lighting, circuit protection, automation and control equipment, data communications infrastructure, security products, and other electrical and industrial supplies.

WESCO serves a broad range of customers, including electrical and data communications contractors, industrial companies, original equipment manufacturers, utilities, commercial and institutional businesses, government entities, and telecommunications providers.

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