Wesco Reports Strong Q1 2026 Financial Results; Data centers now represent 24% of total company revenue.

Wesco posted record first-quarter sales and strong profit growth.  The distributor reported $6.1 billion in revenue, up 14% year over year. The company also raised its full-year outlook after an exceptional start to 2026. The stock opened about 21% higher and has settled back to a 15% gain. 

Data Center Growth Drives Wesco Revenue Surge

Wesco delivered organic sales growth of 12%, supported by demand across all segments. The standout performer was data center infrastructure. Sales in that category reached $1.4 billion, up about 70% year over year.

Data centers now represent 24% of total company revenue. This shift reflects ongoing investment in AI, cloud computing, and digital infrastructure. For the lighting and electrical sector, this trend continues to drive demand for power distribution, connectivity, and controls.

Profitability and Margins Show Steady Improvement

Wesco improved margins while growing revenue. Operating profit rose 21.8% to $293.5 million. Operating margin increased to 4.8%, up 30 basis points.

Adjusted EBITDA reached $388.8 million, up 25%. The adjusted EBITDA margin expanded to 6.4%, a 60-basis-point improvement. These gains came from better gross margins and strong cost control.

Selling, general, and administrative expenses increased due to higher compensation and commissions. However, SG&A as a percentage of sales improved slightly, showing solid operating leverage.

Earnings and Cash Flow Highlight Strong Execution

Earnings growth was a key highlight. Diluted EPS reached $3.11, up 48% year over year. Adjusted EPS came in at $3.37, rising 52.5%.

Cash flow improved sharply. Operating cash flow totaled $221 million, compared to $28 million last year. Free cash flow reached $213 million, or 128% of adjusted net income.

The increase was driven by higher earnings and favorable working capital timing. Inventory purchases and supplier payments also supported the improvement.

Record Backlog Supports Positive Outlook

Wesco reported a record backlog, up 22% year over year. Demand remained strong across Electrical and Electronic Solutions, Communications and Security Solutions, and Utility and Broadband Solutions.

John Engel pointed to strong execution and cross-selling as key drivers. Leadership also cited long-term growth trends supporting demand.

The company raised its 2026 outlook, signaling confidence in continued momentum. While macro uncertainty remains, Wesco expects to outperform its markets.

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