WESCO Posts Record Quarterly Sales of $7.2264 Billion and Raises 2026 Outlook
Key Facts
WESCO reported record net sales of $7.2264 billion in the third quarter ended September 30, 2026, up 16.6% year over year and 8% from the second quarter, according to its investor results presentation. Organic sales growth was 16.6%, indicating that the increase was not limited to the effect of the year-over-year comparison. Data center sales rose to $1.8 billion, up about 55% from $1.2 billion a year earlier. The company said its backlog increased about 80% year over year to a record level. The results were accompanied by higher adjusted earnings before interest, taxes, depreciation and amortization, as well as an increase in its financial outlook for the current year.
Adjusted diluted earnings per share reached a record $5.77, up 47% from the year-earlier period, while diluted earnings per share under U.S. generally accepted accounting principles were $5.43. Adjusted earnings before interest, taxes, depreciation and amortization reached $562 million, up 33% year over year. The margin on those earnings expanded by about 100 basis points to 7.8%. On liquidity, the company generated $184 million in free cash flow during the quarter. Its leverage ratio also improved to 2.8 times at quarter-end, compared with 3.4 times at the end of 2025.
Organic sales growth extended across all three business units, although the pace varied. Communications and security sales rose 21%, Electrical and Electronic Solutions increased 18%, and Utility and Broadband sales grew 7%. The company said all three units again recorded record backlogs. Total backlog had grown about 60% year over year in the second quarter, before the increase accelerated to about 80% in the third quarter. The figures highlight the breadth of demand growth across the company's businesses, alongside the strength recorded in data centers.
The third-quarter results followed WESCO's report of $6.7 billion in sales in the second quarter, up 13% year over year. Data center sales then reached $1.5 billion, up about 45% from the prior year, while backlog increased about 60%. Chief Executive John Engel said after those results that the company had recorded four consecutive quarters of double-digit sales growth, driven by data centers. He added that demand remained strong across the rest of the portfolio and in infrastructure projects. In July, the company said its Utility and Broadband unit had won a multi-year network services contract from a large hyperscale data center customer, and Engel said the contract expanded the company's offerings to include power solutions.
WESCO strengthened its presence in data center services with an acquisition completed in July of NewArc Engineering, a Singapore-based company that provides engineered cooling services and data center lifecycle services. The base purchase price, funded at closing, was about $135 million. On its outlook, the company raised its 2026 reported sales growth range to 14%-15%, compared with its July forecast of 10%-12%. It also raised its annual sales estimate to $26.8-$27.0 billion from $25.9-$26.3 billion. The expected adjusted earnings per share range increased to $18.00-$18.50, from $16.00-$17.50.
The company forecast low- to mid-teens reported sales growth in the fourth quarter, with adjusted earnings before interest, taxes, depreciation and amortization margin up about 50 basis points year over year. WESCO shares closed at $347.22 on October 28, after rising from $318.02 on October 23 to $339.11 on October 27. Analyst consensus estimates before the results were announced called for earnings per share of $4.69 and revenue of $6.87 billion for the quarter. The company scheduled its third-quarter results call for October 29, 2026, at 10:00 a.m. Eastern time. It also announced a virtual deep dive on data centers for November 10 at 10 a.m. Eastern time, to showcase the value it offers through its business units.