WESCO Q1 Earnings Surpass Expectations, Revenues Increase Y/Y

WESCO International WCC posted a strong first quarter of 2026, with adjusted earnings of $3.37 per share, rising 52.5% year over year. The bottom line topped the Zacks Consensus Estimate by 17.18%.

Net sales of $6.08 billion increased 13.8% from the year-ago quarter. Revenues also surpassed the Zacks Consensus Estimate of $5.88 billion by 3.43%. Organic sales increased 12.3% year over year. 

A key growth engine remained data center activity. Data center sales totaled $1.4 billion in the quarter, up about 70% year over year, and accounted for 24% of quarterly sales. The total company backlog rose 22% year over year to a record level.

WCC’s Top-Line Details

The EES Segment (36.9% of Net Sales): Sales in the segment were $2.24 billion, up 8.7% year over year. Organic sales increased 7% year over year. 

WESCO International, Inc. Price, Consensus and EPS Surprise

WESCO International, Inc. price-consensus-eps-surprise-chart | WESCO International, Inc. Quote

CSS (40.8% of Net Sales): Sales in the segment were $2.47 billion, up 23.9% year over year. Organic sales rose 21.9% on a year-over-year basis.

UBS (22.3% of Net Sales): Sales in the segment were $1.35 billion, up 6.2% year over year. Organic sales increased 5.8% year over year.

WCC’s Operating Details

The first-quarter 2026 gross margin was 21.2%, which improved 20 basis points year over year.

The adjusted EBITDA margin of 6.4% improved 60 basis points year over year.

Selling, general, and administrative expenses were $930.1 million, up 12.2% year over year. As a percentage of revenues, the figure decreased 20 bps year over year to 15.3%.

The adjusted operating margin was 5.1%, which improved 50 bps year over year.

WCC’s Balance Sheet Remains Strong

As of March 31, 2026, cash and cash equivalents were $696.6 million, up from $604.8 million as of Dec. 31, 2025.

The long-term debt was $5.74 billion at the first quarter end compared with $5.76 billion in the prior quarter.

Net cash used in operating activities for the first quarter of 2026 totaled $221.4 million. Free cash flow reached $213.4 million.

WCC Raises 2026 Outlook After Strong Start

Given the strong start to the year, management raised its full-year 2026 outlook. WESCO now expects reported sales of $24.9-$25.6 billion, organic sales growth of 5-8%, adjusted EBITDA margin of 6.6-7%, adjusted earnings of $15-$17 per share, and free cash flow of $500-$800 million.

WCC Zacks Rank & Stocks to Consider

WESCO currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Computer and Technology sector include Analog Devices ADI, Advanced Energy AEIS and Arista Networks ANET, each currently carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Analog Devices have gained 48.3% in the year-to-date period. Analog Devices is set to report the second quarter of fiscal 2026 results on May 20.

Shares of Advanced Energy have surged 83.5% in the year-to-date period. Advanced Energy is slated to report first-quarter 2026 results on May 4.

Arista Networks shares have gained 32% in the year-to-date period. Arista Networks is set to report first-quarter 2026 results on May 5.

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This article originally published on Zacks Investment Research (zacks.com).

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