WESCO International (NYSE:WCC) Issues Earnings Results

Key Points

• WESCO delivered record second-quarter results: Revenue rose 13% year over year to approximately $6.7 billion, while adjusted EPS increased 35% to $4.57, beating the $3.98 consensus estimate. Adjusted EBITDA margin expanded to 7.3%.
• Demand remains strong in data centers and infrastructure: Data-center sales grew roughly 45% to $1.5 billion, and backlog increased about 60% year over year, supported by AI infrastructure and a multiyear grid-services award from a hyperscale customer.
• Management raised its 2026 outlook to adjusted EPS of $16.00–$17.50 and revenue of $25.9–$26.3 billion. However, free-cash-flow guidance was reduced to $300–$600 million because higher sales require additional working-capital investment, while public-power competition may pressure UBS margins.

WESCO International (NYSE:WCC - Get Free Report) posted its quarterly earnings results on Thursday. The technology company reported $4.57 earnings per share for the quarter, beating the consensus estimate of $3.98 by $0.59, Zacks reports. The business had revenue of $6.67 billion for the quarter, compared to the consensus estimate of $6.44 billion. WESCO International had a return on equity of 13.82% and a net margin of 2.79%.The company's quarterly revenue was up 13.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $3.83 EPS. WESCO International updated its FY 2026 guidance to 16.000-17.500 EPS.

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

• Record second-quarter results: Sales rose 13% to $6.7 billion, adjusted EBITDA increased 24% to $487 million, and adjusted EPS grew 35% to a record $4.57. Adjusted EBITDA margin expanded 60 basis points to 7.3%.
• Growth was broad-based beyond data centers, with mid-single-digit sales growth excluding data centers. Data center sales increased approximately 45% to $1.5 billion, while EES and UBS also benefited from infrastructure, industrial, OEM, utility, and broadband demand.
• Record backlog rose 60% year over year, including increases of approximately 95% in CSS, 30% in EES, and 80% in UBS. A multiyear grid-services award from a hyperscale customer expands UBS into data-center power infrastructure and is expected to be margin accretive.
• WESCO raised its full-year outlook, now expecting 9%-11% organic sales growth, 10%-12% reported sales growth, a 6.9%-7.1% adjusted EBITDA margin, and adjusted EPS of $16-$17.50. Third-quarter sales are expected to grow at a low-double-digit rate year over year.
• Free cash flow guidance is now $300 million-$600 million as higher sales require additional working-capital investment. Management expects third-quarter EBITDA margin to decline slightly sequentially because of project mix, while public-power competitive dynamics continue to pressure UBS margins.

WESCO International Stock Performance

WCC stock traded up $35.07 during trading on Thursday, hitting $344.43. 1,207,947 shares of the company traded hands, compared to its average volume of 623,082. The stock's 50-day simple moving average is $343.56 and its 200 day simple moving average is $313.83. The company has a debt-to-equity ratio of 1.13, a current ratio of 2.12 and a quick ratio of 1.22. The company has a market cap of $16.78 billion, a PE ratio of 24.48, a P/E/G ratio of 2.07 and a beta of 1.54. WESCO International has a 1 year low of $197.96 and a 1 year high of $377.90.

WESCO International Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Friday, June 12th were issued a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Friday, June 12th. WESCO International's dividend payout ratio (DPR) is 14.21%.

Insiders Place Their Bets

In other news, EVP Akash Khurana sold 4,000 shares of WESCO International stock in a transaction that occurred on Wednesday, May 6th. The shares were sold at an average price of $359.13, for a total transaction of $1,436,520.00. Following the completion of the transaction, the executive vice president directly owned 30,775 shares of the company's stock, valued at $11,052,225.75. The trade was a 11.50% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO David S. Schulz sold 31,951 shares of the stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $360.44, for a total transaction of $11,516,418.44. Following the sale, the chief financial officer directly owned 77,038 shares in the company, valued at $27,767,576.72. This trade represents a 29.32% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 144,486 shares of company stock worth $51,846,641. Corporate insiders own 2.60% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in WCC. Azimuth Capital Investment Management LLC purchased a new stake in shares of WESCO International during the 4th quarter worth about $17,545,000. California State Teachers Retirement System increased its stake in shares of WESCO International by 0.8% in the 2nd quarter. California State Teachers Retirement System now owns 45,604 shares of the technology company's stock valued at $8,446,000 after purchasing an additional 365 shares in the last quarter. Third Avenue Management LLC raised its holdings in WESCO International by 1.0% in the 4th quarter. Third Avenue Management LLC now owns 20,295 shares of the technology company's stock worth $4,965,000 after purchasing an additional 202 shares during the period. Dean Investment Associates LLC raised its holdings in WESCO International by 1.9% in the 4th quarter. Dean Investment Associates LLC now owns 19,716 shares of the technology company's stock worth $4,823,000 after purchasing an additional 371 shares during the period. Finally, State of Tennessee Department of Treasury boosted its position in WESCO International by 3.9% during the fourth quarter. State of Tennessee Department of Treasury now owns 18,835 shares of the technology company's stock worth $4,608,000 after purchasing an additional 712 shares in the last quarter. Hedge funds and other institutional investors own 93.75% of the company's stock.

WESCO International News Summary

Here are the key news stories impacting WESCO International this week:

• Positive Sentiment: WESCO reported record second-quarter net sales of approximately $6.7 billion, up 13% year over year and 10% sequentially. Organic sales also increased 13%. WESCO International Reports Second Quarter 2026 Results
• Positive Sentiment: Adjusted diluted EPS reached a record $4.57, up about 35% from the prior year and above consensus estimates near $3.96-$3.98. Adjusted EBITDA margin improved to 7.3% from 6.7% a year earlier. WESCO International Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Data-center sales rose roughly 45% to $1.5 billion, while company backlog increased approximately 60% year over year. Investors viewed these trends as evidence of strong demand visibility tied to artificial-intelligence infrastructure and broader capital spending.
• Positive Sentiment: Management raised its 2026 outlook to adjusted EPS of $16.00-$17.50 and revenue of $25.9-$26.3 billion, above consensus revenue expectations of about $25.4 billion. The company also highlighted a multi-year grid-services award from a hyperscale data-center customer and the Newark Engineering acquisition, which expands cooling and lifecycle-service capabilities. WESCO International Raises Outlook After Record Q2 Results
• Neutral Sentiment: Institutional positioning was mixed, with major investors including BlackRock and Wellington adding shares while several other funds reduced holdings. Recent analyst targets have generally remained above the current trading level, but the stock is near its 52-week high.
• Negative Sentiment: Insiders have been net sellers over the past six months, including substantial sales by senior executives. These transactions may reflect compensation or diversification rather than a change in business outlook, but they are a potential cautionary signal.

Analyst Upgrades and Downgrades

WCC has been the subject of several research analyst reports. Royal Bank Of Canada raised their price objective on WESCO International from $411.00 to $421.00 and gave the stock an "outperform" rating in a research note on Thursday, July 16th. KeyCorp upped their target price on WESCO International from $340.00 to $415.00 and gave the company an "overweight" rating in a research report on Friday, May 1st. Stephens raised shares of WESCO International from an "equal weight" rating to an "overweight" rating and raised their price target for the stock from $350.00 to $400.00 in a research report on Tuesday, July 14th. Barclays raised their price target on shares of WESCO International from $313.00 to $375.00 and gave the stock an "overweight" rating in a research report on Monday, May 4th. Finally, Weiss Ratings raised shares of WESCO International from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday, May 4th. One investment analyst has rated the stock with a Strong Buy rating and nine have assigned a Buy rating to the stock. According to data from MarketBeat, the stock has an average rating of "Buy" and a consensus target price of $341.22.

About WESCO International

WESCO International, Inc is a leading global distributor of electrical, industrial, communications and utility products, serving a diverse customer base across maintenance, repair and operations (MRO), original equipment manufacturing (OEM) and construction markets. The company offers a comprehensive portfolio of products ranging from power distribution and automation solutions to data communications, security systems and lighting controls. Through an extensive branch network, WESCO provides critical components and value‐added services that help organizations streamline operations and improve reliability in their facilities and infrastructure.

In addition to its broad product offering, WESCO delivers advanced supply chain management and logistics solutions designed to optimize inventory levels, reduce downtime and lower overall procurement costs.

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