Wesco Raises 2026 Outlook After Record Third Quarter as Data Center Sales Climb 55%

Wesco International raised its full-year 2026 outlook again on Thursday after record third-quarter sales of $7.2 billion, with data center sales up about 55% and total backlog up about 80%, according to its earnings release filed with an 8-K.

The Pittsburgh-based distribution, logistics services and supply chain solutions provider now expects 2026 sales of $26.8 billion to $27.0 billion, up from $25.9 billion to $26.3 billion in July. It lifted its adjusted EPS forecast to $18.00 to $18.50 from $16.00 to $17.50, and now sees an adjusted EBITDA margin of about 7.2%, up from 6.9% to 7.1%.

Organic sales growth is now expected at 13% to 14%, up from 9% to 11%. The free cash flow outlook was unchanged at $300 million to $600 million.

Record quarter

Net sales rose 16.6% to $7.23 billion from $6.20 billion a year earlier, with organic growth of 16.6%, and grew 8.4% from the second quarter. Data center sales reached $1.8 billion, while non-data center sales rose 7%.

Adjusted EPS jumped 47.2% to a record $5.77 from $3.92, and GAAP EPS rose 43.3% to $5.43 from $3.79. Net income attributable to common stockholders increased 42.8% to $267.8 million.

Adjusted EBITDA climbed 32.7% to $561.5 million, and the margin widened 100 basis points to 7.8%. Gross margin improved to 21.7% from 21.3%.

"Once again, sales, backlog, operating profit, and earnings per share all increased double digits versus the prior year and achieved records that exceeded our expectations," Chairman, President and CEO John Engel said in the release.

Growth across all three units

Engel said backlog reached a new record at each of Wesco's three business units and is being fueled by multi-year customer commitments.

In the earnings presentation filed with the same 8-K, Wesco said organic sales rose 21% in Communication and Security Solutions, 18% in Electrical and Electronic Solutions and 7% in Utility and Broadband Solutions. Electrical and Electronic Solutions sales reached $2.77 billion, with adjusted EBITDA up 31% to $259 million.

The company also said October preliminary sales per workday were up by a high-teens percentage.

Cash flow turns positive

Operating cash flow was $193.9 million, compared with cash used of $82.7 million a year earlier, and free cash flow was $184.2 million versus negative $89.3 million. The company said the swing reflected higher accounts payable and customer advance payments, partly offset by inventory growth for large projects.

Financial leverage fell to 2.8 times from 3.4 times at the end of 2025. Cash and cash equivalents stood at $842.5 million at Sept. 30.

By the numbers

• $7.23 billion: record third-quarter net sales, up 16.6%
• About 55%: growth in data center sales, to $1.8 billion
• About 80%: increase in total backlog
• $5.77: record adjusted EPS, up 47.2%
• $18.00 to $18.50: raised 2026 adjusted EPS outlook
• 2.8 times: financial leverage, down from 3.4 times

Sources

1. Wesco International Form 8-K with third-quarter 2026 earnings release and presentation (Exhibits 99.1 and 99.2), filed Oct. 29, 2026 (accession 0000929008-26-000029)

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