Wesco International stock drops over 7%, Q4 earnings miss expectations but revenue exceeds expectations

LootboxPhobia · 2026-02-10T14:48:50+00:00

Wesco International's Q4 earnings fell short of expectations, with earnings of $3.40 per share and revenue of $6.1 billion. Although the Communications and Security Solutions segment performed well, challenges in the Utilities segment impacted profitability. The company projects a FY2026 earnings per share of $14.50 to $16.50 and plans to increase dividends.

LootboxPhobia

2026-02-10 14:48:50

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Pittsburgh - On Tuesday, Wesco International (NYSE:WCC) reported fourth-quarter earnings that significantly missed analyst expectations, despite revenue exceeding forecasts.

The company’s stock in the business distribution sector fell 7.50% in pre-market trading following the earnings release.

The Pittsburgh-based company reported adjusted fourth-quarter earnings of $3.40 per share, below the consensus analyst estimate of $3.89 by $0.49. Revenue was $6.1 billion, slightly above the $6.03 billion consensus, representing a 10% year-over-year increase. Organic sales grew 9% compared to the same period last year.

Wesco’s adjusted fourth-quarter earnings per share fell short of expectations, despite strong performances in its Communications and Security Solutions (CSS) and Electrical & Electronic Solutions (EES) segments, which were offset by ongoing challenges in the Utility and Broadband Solutions (UBS) segment, facing profit margin pressures from public electric utility customers.

The company also mentioned non-operational items affecting profitability, including updated tax positions.

“We closed 2025 on a positive note, once again surpassing market performance with our leading portfolio of products, services, and solutions,” said Chairman, President, and CEO John Engel. “Record sales of $23.5 billion grew 8% year-over-year, with double-digit growth in the second half.”

The company’s data center sales were particularly strong, reaching $1.2 billion in the fourth quarter, up approximately 30% year-over-year. The company’s total backlog increased 19% year-over-year, emphasizing that it is benefiting from long-term growth trends, including AI-driven data centers and increased power generation.

For fiscal 2026, Wesco provided guidance of adjusted earnings per share between $14.50 and $16.50, compared to the analyst consensus of $16.42. The company also announced plans to increase its annual common stock dividend by more than 10% to $2.00 per share.

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