Why This Matters to Distributors: Wesco’s results show continued demand for data center products alongside broader growth in electrical, communications and utility markets. Its rising volume of unfilled orders underscores the opportunities for distributors that can support large infrastructure projects with products, logistics and technical services.
Wesco International’s third-quarter sales increased 16.6% and earnings rose 42.8% as data center spending accelerated and product demand increased across all three of its businesses.
The Pittsburgh-based distributor reported that sales reached $7.23 billion for the quarter ended Sept. 30, compared with $6.20 billion a year earlier. Net income increased to $267.8 million from $187.5 million.
For the first nine months of 2026, sales rose 14.5% to $19.97 billion from $17.44 billion. Net income increased 31.2% to $630.6 million from $480.6 million.
Data center sales led the quarterly growth, rising 55% to $1.8 billion. Sales outside that market increased 7%, while the company’s backlog (orders received but not yet filled) grew approximately 80% from a year earlier.
“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,” said John Engel, chairman, president, and CEO. “Customer demand is strong across the rest of our diversified portfolio and end markets, with sales up high single-digits excluding data centers.”
Wesco said higher product volumes and selling prices contributed to growth across its electrical and electronic, communications and security, and utility and broadband businesses. Excluding acquisitions and currency changes, sales increased 16.6% in the quarter and 13.9% for the first nine months.
Third-quarter sales also rose 8.4% from the second quarter. Each of the company’s three businesses ended in September with a record backlog, reflecting continued customer investment in major projects.
“Our customers continue to invest in major capital and infrastructure projects,” Engel said.
Engel said multi-year customer commitments helped drive the increase in unfilled orders. Those commitments span communications, security, electrical, utility and power markets.
Earnings grew faster than sales despite higher employee compensation and spending on technology initiatives. Selling and administrative expenses increased 15.1% to $1.06 billion in the quarter and 15.3% to $3.03 billion for the first nine months, primarily because of higher commissions, incentives, salaries, and benefits.
Costs associated with digital transformation initiatives totaled $24.8 million in the quarter, compared with $8.8 million in digital transformation and restructuring costs a year earlier. Nine-month digital transformation costs increased to $65.5 million from $24.1 million.
Wesco raised its full-year outlook, citing stronger sales, earnings, and orders. Engel said the company’s growing backlog and continued customer investment supported its expectations for the remainder of 2026 and into 2027.
Wesco distributes electrical, communications, security, utility, and related products and provides logistics and supply chain services. The company employs approximately 21,000 people and operates more than 700 locations in about 50 countries.
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