Wesco Q2 revenue beats on data center sales

Overview

• US distribution and supply chain firm's Q2 revenue rose 13%, beating analyst expectations

• Adjusted diluted EPS for Q2 climbed 35%, beating analyst expectations

• Company raised 2026 outlook after strong first half and accelerating momentum

Outlook

• Wesco is significantly raising its full-year 2026 outlook

• Company cites record backlog and multi-year customer commitments as drivers of positive outlook

• Wesco expects continued strong demand in data centers and infrastructure projects

Result Drivers

• DATA CENTER SALES - Data center sales rose about 45% year-on-year, fueling overall sales growth

• BROAD-BASED VOLUME GROWTH - Volume growth in all three segments (CSS, EES, UBS) contributed to higher organic sales

• RECORD BACKLOG - Company backlog increased about 60% year-on-year, supported by multi-year customer commitments and infrastructure demand

Company press release: ID:nPn1Th081a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electrical components equipment peer group is "buy"

• Wall Street's median 12-month price target for Wesco International Inc is $400.00, about 29.3% above its July 29 closing price of $309.36

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads

• July 27 - France's Rexel H1 sales rise, EBITA margin improves on volume and price gains

• July 28 - Electrical equipment maker Hubbell lifts profit forecast amid demand from data centers

• July 29 - Modine Q1 revenue rises on data centers, commercial HVAC strength

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)