WESCO Q2 Earnings Surpass Expectations, Revenues Increase Y/Y

WESCO International WCC posted strong second-quarter 2026 results, with adjusted earnings of $4.57 per share rising 35% year over year. The bottom line topped the Zacks Consensus Estimate of $3.96 by 15.4%.

Net sales of $6.67 billion increased 13% from the year-ago quarter. Revenues also surpassed the Zacks Consensus Estimate of $6.4 billion by 4.17%. Organic sales increased 12.6% year over year.

Data center activity remained a key growth engine. Data center sales totaled $1.5 billion in the quarter, up about 45% year over year, and accounted for roughly 22.5% of quarterly sales. The total company backlog rose approximately 60% year over year to a record level.

WESCO International, Inc. Price, Consensus and EPS Surprise

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

WCC's Top-Line Details

The EES Segment (37.7% of net sales): Sales in the segment were $2.51 billion, up 11.2% year over year. Organic sales increased 10.9% year over year.

CSS (40.2%): Sales in the segment were $2.68 billion, up 18.4% year over year. Organic sales rose 17.5% on a year-over-year basis.

UBS (22.1%): Sales in the segment were $1.47 billion, up 7% year over year. Organic sales increased 7% year over year.

WCC's Operating Details

The second-quarter 2026 gross margin was 21.8%, which improved 70 basis points year over year.

The adjusted EBITDA margin of 7.3% improved 60 basis points year over year.

Selling, general, and administrative expenses were $1.02 billion, up 17.3% year over year. As a percentage of revenues, the figure increased 50 bps year over year to 15.3%.

The adjusted operating margin was 6.1%, which improved 50 bps year over year.

WCC's Balance Sheet Remains Strong

As of June 30, 2026, cash and cash equivalents were $808.9 million, up from $696.6 million as of March 31, 2026.

The long-term debt was $5.91 billion at the end of the second quarter compared with $5.74 billion in the prior quarter, reflecting the issuance of new senior notes used to redeem the 2028 Notes.

Net cash provided by operating activities for the second quarter of 2026 totaled $53.7 million. Free cash flow reached $32.3 million.

WCC Raises 2026 Outlook After Strong First Half

Given the exceptional first-half performance and accelerating business momentum, management significantly raised its 2026 outlook. WESCO now expects reported sales of $25.9 to $26.3 billion, organic sales growth of 9% to 11%, adjusted EBITDA margin of 6.9% to 7.1%, and adjusted earnings of $16 to $17.50 per share. Free cash flow guidance was revised to $300 to $600 million from the prior range of $500 to $800 million, reflecting higher working capital needs to support the double-digit sales growth.

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 are AppFolio APPF, Amkor Technology AMKR and Amphenol APH, each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of AppFolio have declined 19.6% year to date. The Zacks Consensus Estimate for APPF’s 2026 earnings is pegged at $6.9 per share, up by 2.2% over the past seven days, indicating an increase of 30.4% year over year.

Shares of Amkor Technology have jumped 8.2% year to date. The Zacks Consensus Estimate for AMKR’s 2026 earnings is pegged at $2.08 per share, unchanged over the past 30 days, indicating a rise of 38.7% year over year.

Amphenol shares have surged 11.3% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.87 per share, up 7 cents over the past 30 days, indicating an increase of 45.8% year over year.

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

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