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WESCO reported Q2 FY2026 revenue of $6.7 billion, up 13.0% from $5.9 billion in Q2 FY2025. WESCO reported adjusted EPS, as the consensus counts it, of $4.57 against consensus adjusted EPS of $3.96, placing adjusted EPS 15.4% above the consensus. The company reported revenue, as the consensus counts it, of $6.7 billion versus consensus revenue of $6.4 billion, or 4.17% above the consensus.
WESCO’s filing attributed sales growth to volume across CSS, EES and UBS, with pricing also contributing. The filing reported gross margin of 21.8%, compared with 21.1% a year earlier, while operating margin was 5.73%, compared with 5.46%. WESCO reported diluted EPS of $4.23, compared with $3.83 in Q2 FY2025. The filing said higher sales and a lower cost of goods sold as a percentage of sales were partly offset by higher SG&A expenses. WESCO reported free cash flow of $25.5 million, compared with $86.0 million a year earlier.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $6.7 billion | $5.9 billion | 13.0% |
| Diluted EPS | $4.23 | $3.83 | 10.4% |
| Gross margin | 21.8% | 21.1% | 0.8 percentage points |
| Operating margin | 5.73% | 5.46% | 0.3 percentage points |
| Free cash flow | $25.5 million | $86.0 million | −70.3% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $4.57 | $3.96 | Beat by 15.4% |
| Revenue | $6.7 billion | $6.4 billion | Beat by 4.17% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
John Engel said the quarter’s sales growth was broad-based across the three business units, with data centers remaining a key driver and sales outside data centers also growing. He said customer investment in infrastructure projects supported demand across the portfolio, while CSS, EES and UBS each recorded backlog growth.
Neil Dev attributed the company’s sales growth to volume and pricing, and said gross-margin improvement and operating leverage on higher sales supported profitability. Dev said CSS benefited from continuing data-center demand, while EES had construction, industrial and OEM activity and UBS saw improving utility and broadband demand trends.
Engel said CSS margin improvement reflected the company’s ability to add products and services as data-center projects move from initial design into implementation, construction and deployment. He said UBS’s public-power competitive dynamics remained a near-term margin headwind, but grid-services work carries margins accretive to UBS. Engel also said the company’s grid-services offering had expanded beyond utilities to support a data-center end user directly.
On investment, Engel said the acquisition of Newark Engineering added cooling, thermal-management, design, installation and after-sales capabilities for data-center customers. Dev said WESCO was pursuing initiatives around customer payment terms, receivables and inventory as it supports growth and works to improve working-capital intensity.
Analysts asked Engel about the sustainability of growth beyond data centers, CSS profitability, UBS grid-services customers and EES demand outside data centers. Engel pointed to the diversified portfolio, backlog and infrastructure-related activity, while Dev said the timing of large projects could be difficult to determine and project mix could vary. Dev said WESCO expected third-quarter margin to be slightly lower sequentially because of anticipated business mix.
Guidance
WESCO said it raised its full-year outlook for sales, adjusted EBITDA and adjusted EPS, and it raised sales-growth outlooks for CSS, EES and UBS. The company also updated its free-cash-flow outlook. Detailed management guidance is not available in the provided facts.