WESCO International Inc. reported first‑quarter 2026 results that surpassed analyst expectations, with net sales of $6.080 billion, up 13.8% year‑over‑year, and diluted earnings per share of $3.11. Adjusted EPS rose to $3.37, a 52.5% increase from the same period in 2025, beating the consensus estimate of $2.88 by $0.49, or 17%.
The company’s margin story reflected disciplined cost management and a favorable sales mix. Adjusted EBITDA margin expanded 60 basis points to 6.4% from 5.8% in the prior year, driven by a 20‑basis‑point lift in gross margin and a 40‑basis‑point improvement in SG&A operating leverage. These gains offset modest increases in commodity and labor costs, allowing WESCO to maintain profitability while scaling revenue.
Segment performance highlighted the data‑center business as the primary growth engine. Data‑center sales climbed 70% year‑over‑year to $1.4 billion, representing 24% of total sales, and contributed significantly to the overall revenue lift. Other segments—Electrical and Electronic Solutions (EES) and Communications and Security Solutions (CSS)—also posted organic growth of 7% and 22% respectively, underscoring a broad‑based expansion across the company’s portfolio.
Management raised its full‑year 2026 guidance, projecting adjusted EPS of $15.00 to $17.00 versus the prior estimate of $14.50 to $16.50, and revenue guidance of $24.800 billion to $25.600 billion versus the previous $24.686 billion to $25.392 billion range. The upward revision reflects confidence in sustained demand for data‑center and utility solutions, as well as the company’s ability to convert backlog growth—recorded at 22%—into revenue.
While celebrating the strong results, the company acknowledged macro‑economic volatility. CEO John Engel noted that the organization remains mindful of broader market conditions, yet emphasized that the combination of pricing power, operational leverage, and a robust backlog positions WESCO to navigate potential headwinds. The company also highlighted a successful $1.5 billion bond refinancing that is expected to generate more than $20 million in annualized interest expense savings, further strengthening its balance sheet.
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