Electrical supply company WESCO (NYSE:WCC) met Wall Street’s revenue expectations in Q4 CY2025, with sales up 10.3% year on year to $6.07 billion. Its non-GAAP profit of $3.40 per share was 12.6% below analysts’ consensus estimates.
Is now the time to buy WESCO? Find out by accessing our full research report, it’s free.
WESCO (WCC) Q4 CY2025 Highlights:
- Revenue: $6.07 billion vs analyst estimates of $6.04 billion (10.3% year-on-year growth, in line)
- Adjusted EPS: $3.40 vs analyst expectations of $3.89 (12.6% miss)
- Adjusted EBITDA: $408.6 million vs analyst estimates of $420 million (6.7% margin, 2.7% miss)
- Operating Margin: 5.3%, in line with the same quarter last year
- Free Cash Flow Margin: 0.5%, down from 4.9% in the same quarter last year
- Organic Revenue rose 9.2% year on year (miss)
- Market Capitalization: $14.68 billion
"We closed out 2025 with positive momentum and again outperformed the market with our leading portfolio of products, services and solutions. Record sales of $23.5 billion were up 8% and increased by double-digits in the second half. Backlog was up 19% to a record level at year end, highlighting the strength of our business, and providing another proof point that Wesco is benefiting from the secular growth trends of AI-driven data centers, increased power generation, and supply chain re-shoring," said John Engel, Chairman, President and CEO.
Company Overview
Based in Pittsburgh, WESCO (NYSE:WCC) provides electrical, industrial, and communications products and augments them with services such as supply chain management.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, WESCO’s 13.8% annualized revenue growth over the last five years was exceptional. Its growth beat the average industrials company and shows its offerings resonate with customers.
Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. WESCO’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 2.5% over the last two years was well below its five-year trend. 
WESCO also reports organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, WESCO’s organic revenue averaged 4% year-on-year growth. Because this number is better than its two-year revenue growth, we can see that some mixture of divestitures and foreign exchange rates dampened its headline results. 
This quarter, WESCO’s year-on-year revenue growth was 10.3%, and its $6.07 billion of revenue was in line with Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 6.1% over the next 12 months. Although this projection suggests its newer products and services will fuel better top-line performance, it is still below the sector average.
The 1999 book Gorilla Game predicted Microsoft and Apple would dominate tech before it happened. Its thesis? Identify the platform winners early. Today, enterprise software companies embedding generative AI are becoming the new gorillas. a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Operating Margin
Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development.
WESCO’s operating margin might fluctuated slightly over the last 12 months but has remained more or less the same, averaging 5.7% over the last five years. This profitability was paltry for an industrials business and caused by its suboptimal cost structureand low gross margin.
Analyzing the trend in its profitability, WESCO’s operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.
In Q4, WESCO generated an operating margin profit margin of 5.3%, in line with the same quarter last year. This indicates the company’s cost structure has recently been stable.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
WESCO’s EPS grew at an astounding 20.3% compounded annual growth rate over the last five years, higher than its 13.8% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
Diving into WESCO’s quality of earnings can give us a better understanding of its performance. A five-year view shows that WESCO has repurchased its stock, shrinking its share count by 3.3%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. 
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For WESCO, its two-year annual EPS declines of 5.9% mark a reversal from its (seemingly) healthy five-year trend. We hope WESCO can return to earnings growth in the future.
In Q4, WESCO reported adjusted EPS of $3.40, up from $3.16 in the same quarter last year. Despite growing year on year, this print missed analysts’ estimates, but we care more about long-term adjusted EPS growth than short-term movements. Over the next 12 months, Wall Street expects WESCO’s full-year EPS of $12.92 to grow 26.8%.
Key Takeaways from WESCO’s Q4 Results
It was good to see WESCO meet analysts’ revenue expectations this quarter. On the other hand, its EPS missed and its EBITDA fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 6.4% to $282.31 immediately after reporting.
WESCO’s latest earnings report disappointed. One quarter doesn’t define a company’s quality, so let’s explore whether the stock is a buy at the current price. We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
/Apple%20logo%20on%20store%20front%20by%20frantic00%20via%20iStock.jpg)
