WESCO International (NYSE:WCC – Get Free Report) released its quarterly earnings results on Thursday. The technology company reported $5.77 earnings per share for the quarter, topping the consensus estimate of $4.69 by $1.08, FiscalAI reports. The firm had revenue of $7.23 billion during the quarter, compared to the consensus estimate of $6.87 billion. WESCO International had a net margin of 3.04% and a return on equity of 16.27%. The company’s revenue for the quarter was up 16.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $3.92 EPS.
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 Down 6.3%
NYSE:WCC traded down $23.23 during trading hours on Friday, hitting $343.48. The company’s stock had a trading volume of 557,389 shares, compared to its average volume of 740,646. WESCO International has a 52-week low of $240.55 and a 52-week high of $388.64. The company has a current ratio of 2.01, a quick ratio of 1.23 and a debt-to-equity ratio of 1.10. The stock has a market capitalization of $16.74 billion, a P/E ratio of 21.32, a price-to-earnings-growth ratio of 2.01 and a beta of 1.54. The stock has a fifty day moving average of $350.61 and a 200-day moving average of $327.01.
WESCO International Dividend Announcement
The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Friday, September 11th were issued a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Friday, September 11th. WESCO International’s dividend payout ratio is 12.41%.
WESCO International News Summary
Here are the key news stories impacting WESCO International this week:
- Positive Sentiment: RBC raised its price target to $450 and reiterated an “outperform” rating, implying approximately 31% upside from the referenced price. The higher target reflects increased confidence in WESCO’s earnings and growth prospects.
- Positive Sentiment: WESCO posted record third-quarter results. Revenue rose 16.6% year over year to $7.23 billion, while adjusted diluted EPS reached a record $5.77, well above the $4.69 consensus estimate. Reported diluted EPS was $5.43, compared with $3.92 a year earlier. WESCO International Reports Record Third Quarter 2026 Results
- Positive Sentiment: Data-center demand was a major growth driver. Data-center sales increased approximately 55% to $1.8 billion, while total backlog expanded about 80% year over year. This supports expectations for continued demand tied to data-center infrastructure and related supply-chain spending. Wesco International Tops Q3 2026 Estimates on Data Center Surge
- Positive Sentiment: Profitability and cash generation improved. Operating margin increased to 6.2%, adjusted EBITDA margin reached 7.8%, operating cash flow was $194 million, and financial leverage declined to 2.8 times from 3.4 times at 2025 year-end.
- Positive Sentiment: Management raised full-year 2026 earnings guidance and issued fourth-quarter guidance, citing record sales, profitability and backlog. The improved outlook reinforces the company’s positive operating momentum. Wesco Raises 2026 Guidance
Analyst Upgrades and Downgrades
WCC has been the subject of several research reports. Stephens upgraded WESCO International from an “equal weight” rating to an “overweight” rating and boosted their price objective for the stock from $350.00 to $400.00 in a research note on Tuesday, July 14th. Wall Street Zen raised shares of WESCO International from a “hold” rating to a “buy” rating in a research note on Saturday, October 24th. Barclays lifted their price target on shares of WESCO International from $390.00 to $437.00 and gave the company an “overweight” rating in a research report on Monday, October 12th. Weiss Ratings lowered WESCO International from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, October 23rd. Finally, Royal Bank Of Canada increased their price objective on WESCO International from $435.00 to $450.00 and gave the company an “outperform” rating in a research note on Friday. Seven equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat, WESCO International currently has an average rating of “Moderate Buy” and a consensus price target of $405.33.
Check Out Our Latest Report on WCC
Insiders Place Their Bets
In other WESCO International news, EVP Daniel J. Castillo bought 960 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The stock was purchased at an average price of $365.89 per share, for a total transaction of $351,254.40. Following the completion of the purchase, the executive vice president directly owned 16,305 shares in the company, valued at $5,965,836.45. This trade represents a 6.26% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Laura K. Thompson sold 270 shares of the business’s stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $368.45, for a total value of $99,481.50. Following the sale, the director owned 10,720 shares of the company’s stock, valued at approximately $3,949,784. The trade was a 2.46% decrease in their position. The SEC filing for this sale provides additional information. 2.60% of the stock is owned by company insiders.
WESCO International Company Profile
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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