WESCO Raises 2026 Sales Outlook to $27 Billion After Record Quarterly Growth
Key Facts
WESCO raised its 2026 reported sales outlook to a range of $26.8–$27.0 billion after reporting record third-quarter results on October 29. The new range compares with a previous outlook of $25.9–$26.3 billion announced in July. The company also raised its full-year organic sales growth outlook to 13%–14%. It forecast adjusted diluted earnings per share of $18.00 to $18.50, up from July's range of $16.00–$17.50. The target update followed quarterly sales of $7.2264 billion, compared with $6.1991 billion a year earlier, an increase of 16.6% year over year.
Third-quarter growth extended beyond reported sales: organic sales rose 16.6%, compared with growth of 12.1% in the same period a year earlier. The company attributed the improvement to higher volumes across its three segments, along with a positive pricing effect. Data center sales reached $1.8 billion, up about 55% year over year. In the rest of the business, excluding data centers, sales grew 7%. Chief Executive John Engel said demand was also strong outside data centers, pointing to growth across the company's portfolio.
Backlog reached a new record, rising about 80% compared with the end of the third quarter of 2025, and WESCO said each of its three segments also set new records. In July, the company reported a record backlog that was up nearly 60% year over year, alongside second-quarter sales of $6.7 billion, an increase of 13%. The comparison shows backlog growth accelerating between the end of the second and third quarters, alongside higher organic sales in the latest quarter. Engel said sales, backlog, operating profit and earnings per share posted double-digit year-over-year increases and reached record levels that exceeded management's expectations. The chief executive linked the raised outlook to customers' multiyear commitments.
Third-quarter operating profit rose to $450.8 million from $345.4 million a year earlier, while diluted earnings per share increased to $5.43 from $3.79. Adjusted diluted earnings per share rose to $5.77, compared with $3.92 in the third quarter of 2025. Adjusted EBITDA margin was 7.8%, versus 6.8% a year earlier, an increase of 100 basis points. The company attributed the margin improvement to sales and gross margin growth, as well as better absorption of operating costs. The results figures show earnings and margins rising alongside revenue expansion.
Alongside its sales and earnings-per-share outlook, WESCO set a 2026 adjusted EBITDA margin range of 7.1% to 7.3%. It also forecast free cash flow of $300 million to $600 million. These targets complete the company's annual outlook, combining sales, earnings, margin and cash flow growth. July targets put reported sales at $25.9–$26.3 billion and adjusted diluted earnings per share at $16.00–$17.50. The update announced in October moved the ranges to $26.8–$27.0 billion and $18.00–$18.50, respectively.
Shares reacted to the results and updated outlook, with WESCO stock rising 6.17% to $368.63 in premarket trading on October 29, according to Investing.com coverage, which said results beat analysts' estimates. The company's conference call to discuss third-quarter results was scheduled for 10 a.m. Eastern time that day. Engel said the company was optimistic about continuing to outperform its markets through the end of 2026 and into 2027. He added that WESCO aims to deliver value to its customers, suppliers and shareholders during that period. The updated annual outlook accompanies the chief executive's view of the following year.