Wesco International Reports Record Third Quarter 2026 Results
WESCO INTERNATIONAL INC (WCC) filed an SEC Form 8-K — Results of Operations and Financial Condition. NEWS RELEASE WESCO International, Inc. / 225 West Station Square Drive, Suite 700 / Pittsburgh, PA 15219 Wesco International Reports Record Third Quarter 2026 Results • Record third quarter reported net sales of $7.2 billion, up 17% YOY and up 8% sequentially – Organic sales up 1
How this was made
The 30-second read
Why it matters
The record quarter and raised outlook suggest stronger demand across its segments, likely supporting the stock price.
Market read
First‑report earnings with raised guidance for a mid‑cap industrial distributor; high relevance for traders.
What to watch
Potential headwinds from rising input costs or slower data‑center spending could temper growth.
Wesco International Reports Record Third Quarter 2026 Results
Third-quarter net sales increased 16.6%, operating profit increased 30.5%, adjusted EBITDA increased 32.7%, and adjusted diluted EPS increased 47.2%. Gross margin, adjusted EBITDA margin, operating cash flow, free cash flow and backlog also increased, while financial leverage declined to 2.8.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net salesGAAP | $7.23B | 8.4% | 16.6% |
| Q3 2026 organic sales growthnon-GAAP | 16.6% | 8.5% | – |
| Q3 2026 gross profitnon-GAAP | $1.57B | – | 18.9% |
| Q3 2026 gross marginnon-GAAP | 21.7% | – | 40 basis points |
| Q3 2026 selling, general and administrative expensesGAAP | $1.06B | – | 15.1% |
| Q3 2026 adjusted selling, general and administrative expensesnon-GAAP | $1.04B | – | 13.5% |
| Q3 2026 adjusted selling, general and administrative expenses as percentage of net salesnon-GAAP | 14.4% | – | – |
| Q3 2026 income from operationsGAAP | $450.8M | – | 30.5% |
| Q3 2026 operating marginGAAP | 6.2% | – | 60 basis points |
| Q3 2026 adjusted income from operationsnon-GAAP | $475.6M | – | – |
| Q3 2026 adjusted income from operations marginnon-GAAP | 6.6% | – | – |
| Q3 2026 adjusted EBITDAnon-GAAP | $561.5M | – | 32.7% |
| Q3 2026 adjusted EBITDA marginnon-GAAP | 7.8% | 50 basis points | 100 basis points |
| Q3 2026 net income attributable to common stockholdersGAAP | $267.8M | – | 42.8% |
| Q3 2026 earnings per diluted shareGAAP | $5.43 | – | 43.3% |
| Q3 2026 adjusted net income attributable to common stockholdersnon-GAAP | $284.4M | – | 46.7% |
| Q3 2026 adjusted earnings per diluted sharenon-GAAP | $5.77 | – | 47.2% |
| Q3 2026 effective tax rateGAAP | 24.4% | – | 90 basis points |
| Q3 2026 operating cash flowGAAP | $193.9M | – | 334.5% |
| Q3 2026 free cash flownon-GAAP | $184.2M | – | 306.3% |
| Nine months 2026 net salesGAAP | $19.97B | – | 14.5% |
| Nine months 2026 organic sales growthnon-GAAP | 13.9% | – | – |
| Nine months 2026 gross profitnon-GAAP | $4.31B | – | 17.0% |
| Nine months 2026 gross marginnon-GAAP | 21.6% | – | 50 basis points |
| Nine months 2026 selling, general and administrative expensesGAAP | $3.03B | – | 15.3% |
| Nine months 2026 adjusted selling, general and administrative expensesnon-GAAP | $2.97B | – | 13.8% |
| Nine months 2026 income from operationsGAAP | $1.13B | – | 24.0% |
| Nine months 2026 operating marginGAAP | 5.6% | – | – |
| Nine months 2026 adjusted EBITDAnon-GAAP | $1.44B | – | 27.5% |
| Nine months 2026 adjusted EBITDA marginnon-GAAP | 7.2% | – | 70 basis points |
| Nine months 2026 net income attributable to common stockholdersGAAP | $630.6M | – | 31.2% |
| Nine months 2026 earnings per diluted shareGAAP | $12.77 | – | 31.5% |
| Nine months 2026 adjusted net income attributable to common stockholdersnon-GAAP | $676.8M | – | 43.7% |
| Nine months 2026 adjusted earnings per diluted sharenon-GAAP | $13.70 | – | 44.1% |
| Nine months 2026 effective tax rateGAAP | 23.3% | – | (110) basis points |
| Nine months 2026 operating cash flowGAAP | $469M | – | 783.2% |
| Nine months 2026 free cash flownon-GAAP | $429.9M | – | 6,413.6% |
| Financial leverage ratio as of September 30, 2026non-GAAP | 2.8 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| EES Q3 2026Organic sales growth was 17.8% year over year and 10.7% sequentially. | $2.77B | 10.4% | 17.5% |
| CSS Q3 2026Organic sales growth was 21.4% year over year and 9.4% sequentially. | $2.93B | 9.4% | 21.7% |
| UBS Q3 2026Organic sales growth was 6.6% year over year and 3.3% sequentially. | $1.52B | 3.2% | 6.4% |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Nine months ended September 30, 2026 repurchases of common stock: $(75.0)
- Nine months ended September 30, 2026 payment of common stock dividends: $(73.1)
What drove it
- Third-quarter organic sales growth reflected volume growth in all three segments, as well as a favorable impact from changes in price.
- Data center sales were $1.8 billion, up ~55% YOY. Non-data center sales were up 7% YOY.
- The gross-margin increase reflected improved gross margin in the EES and CSS segments.
- Third-quarter adjusted EBITDA and adjusted EBITDA margin increased on higher sales, increased gross margin and improved operating cost leverage.
- Record backlog at the end of the third quarter of 2026 was up by approximately 80% compared to the end of the third quarter of 2025.
- Operating cash flow increased through accounts payable, changes in other current and noncurrent liabilities, and increased net income as adjusted for certain non-cash items.
Concerns
- Third-quarter SG&A expenses included $24.8 million of digital transformation costs, compared to $8.8 million of digital transformation and restructuring costs for the third quarter of 2025.
- Third-quarter operating cash flow was partially offset by a $169.3 million impact from inventories, a $93.6 million impact from other current and noncurrent assets, and a $90.0 million impact from trade accounts receivable.
- For the first nine months, adjusted earnings per diluted share was partially offset by a $47.4 million increase in the adjusted provision for income taxes and a $22.5 million increase in interest expense.
- Long-term debt, net was $5,982.8 as of September 30, 2026, compared with $5,756.4 as of December 31, 2025.
What to watch
- Conversion of the record backlog, which was up by approximately 80% year over year.
- Sustained demand outside data centers, where sales were up 7% YOY.
- Gross-margin performance in EES and CSS and operating cost leverage as sales growth continues.
- Working-capital movements in trade receivables, inventories, accounts payable, supplier prepayments and deferred revenue.
- The company stated that it is raising its full-year 2026 outlook, but no quantitative outlook figures were included in the filing text.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026: $842.5; December 31, 2025: $604.8.
- Trade accounts receivable, net as of September 30, 2026: $5,050.2; December 31, 2025: $4,069.6.
- Inventories as of September 30, 2026: $4,687.1; December 31, 2025: $4,008.8.
- Short-term debt and current portion of long-term debt, net as of September 30, 2026: $24.8; December 31, 2025: $25.0.
- Long-term debt, net as of September 30, 2026: $5,982.8; December 31, 2025: $5,756.4.
- Total debt as of September 30, 2026: $6,058.2; December 31, 2025: $5,829.4.
- Total debt, net of cash as of September 30, 2026: $5,215.7; December 31, 2025: $5,224.6.
- Nine months ended September 30, 2026 capital expenditures: $(80.7); September 30, 2025: $(55.4).
- Nine months ended September 30, 2026 acquisition payments, net of cash acquired: $(127.7); September 30, 2025: $(36.0).
- Nine months ended September 30, 2026 net cash used in financing activities: $(22.0); September 30, 2025: $(94.2).
Analysis
Wesco reported a record third quarter, with GAAP net sales of $7,226.4, up 16.6% from $6,199.1, and up 8.4% sequentially from $6,665.1. Organic sales growth was 16.6%, with volume growth in EES, CSS and UBS plus a favorable impact from price. Data center sales were $1.8 billion, up ~55% YOY, while non-data center sales were up 7% YOY. CSS posted the fastest reported sales growth among the segments at 21.7%, followed by EES at 17.5% and UBS at 6.4%.
Profitability expanded faster than sales. Operating profit increased 30.5% to $450.8 and operating margin increased 60 basis points to 6.2%. Non-GAAP gross margin increased 40 basis points to 21.7%, reflecting improvement in EES and CSS. Adjusted EBITDA rose 32.7% to $561.5, while adjusted EBITDA margin expanded 100 basis points to 7.8% and increased 50 basis points sequentially. Adjusted SG&A expense as a percentage of net sales declined to 14.4% from 14.7%, although reported SG&A included $24.8 million of digital transformation costs.
Earnings growth outpaced operating-profit growth. GAAP diluted EPS was $5.43, up 43.3%, and adjusted diluted EPS was $5.77, up 47.2%. The company attributed the adjusted EPS increase to higher adjusted EBITDA, partially offset by a $32.8 million increase in the adjusted provision for income taxes. The effective tax rate rose to 24.4% from 23.5%, largely due to a higher annual effective tax rate resulting from higher non-deductible compensation expense.
Cash generation improved materially, with third-quarter operating cash flow of $193.9 versus net cash used in operating activities of $82.7 in the prior-year quarter, and free cash flow of $184.2 versus $(89.3). Accounts payable and deferred-revenue-related liabilities supported the increase, partly offset by higher inventories, supplier prepayments and trade accounts receivable. Cash and cash equivalents were $842.5 at September 30, 2026. Financial leverage declined to 2.8 from 3.4 at December 31, 2025, while the company repurchased $75.0 of common stock and paid $73.1 of common dividends during the first nine months.
Management cited a record total company backlog that was up by approximately 80% year over year, with record backlog for each business unit. The company stated that it is raising its full-year 2026 outlook on record sales, profitability and backlog, but the filing text did not provide the quantitative outlook ranges needed to assess the guide. The primary reported execution measures for the fourth quarter are backlog conversion, sales growth outside data centers, gross-margin progress in EES and CSS, and working-capital cash flow.
Management, verbatim
We are very pleased with our record third quarter results and carry positive business momentum into the fourth quarter. 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.
John Engel, Chairman, President, and CEO
The past five consecutive quarters of double-digit sales growth demonstrate Wesco’s higher growth profile which extends well beyond our important data center positioning.
John Engel, Chairman, President, and CEO
As a result, we are again significantly raising our full-year 2026 outlook reflecting our confidence in our continued strong execution.
John Engel, Chairman, President, and CEO
Not in the filing
stated, not guessed- Quantitative full-year 2026 guidance for revenue, gross margin, operating expenses, tax rate, adjusted EBITDA, earnings per diluted share, free cash flow or other metrics was not provided in the filing text.
- Previous outlook was not provided, so no comparison of actual results with prior guidance is available.
- Q3 2026 prior-quarter GAAP operating profit, GAAP net income attributable to common stockholders, GAAP diluted EPS, operating cash flow, free cash flow, gross profit, gross margin, SG&A expenses and effective tax rate were not provided on their respective metric rows.
- Q3 2026 segment-specific revenue drivers beyond the reported organic growth information were not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Wesco International (NYSE: WCC) is a leading B2B distributor and logistics provider.
Ticker impact
Wesco International reported record Q3 2026 results with net sales of $7.2B and raised its full-year outlook.
likely upward pressure as the market prices in the raised guidance
Record sales, higher margins and a higher backlog signal strong demand; the company explicitly raised its 2026 outlook, which should attract buying.
Market effects
Boosts outlook for B2B distribution and logistics sector.
Positive for U.S. industrial and supply‑chain stocks.
May influence global distributors tracking data‑center demand.
Counterpoint
If the raised outlook is already priced in, the stock could face a short‑term pullback.
Key entities
- ExecutiveJohn Engel
Chairman, President and CEO of Wesco International.
