Wesco International (NYSE:WCC) posted fourth-quarter results on Tuesday that disappointed on earnings, overshadowing a modest revenue beat and triggering a sharp sell-off in the stock. Shares of the industrial distributor fell about 7.5% in pre-market trading following the release.
The Pittsburgh-based group reported adjusted earnings of $3.40 per share for the quarter, well below the analyst consensus of $3.89. Revenue, however, reached $6.1 billion, topping expectations of $6.03 billion and representing a 10% increase year on year. On an organic basis, sales rose 9% compared with the same period last year.
The earnings miss was driven by mixed segment performance. Strength in Communications & Security Solutions (CSS) and Electrical & Electronic Solutions (EES) was offset by continued weakness in Utility & Broadband Solutions (UBS), where margins were pressured, particularly in public power markets. Wesco also pointed to non-operating factors, including revised tax positions, as an additional drag on profitability.
“We closed out 2025 with positive momentum and again outperformed the market with our leading portfolio of products, services and solutions,” said John Engel, Chairman, President and CEO. “Record sales of $23.5 billion were up 8% and increased by double-digits in the second half.”
Demand tied to data centers stood out as a bright spot, with sales in the segment climbing about 30% year on year to $1.2 billion in the fourth quarter. The company said total backlog increased 19% from a year earlier, reflecting exposure to longer-term growth themes such as AI-driven data center expansion and rising power generation needs.
Looking ahead, Wesco issued fiscal 2026 guidance for adjusted earnings per share in the range of $14.50 to $16.50, compared with an analyst consensus of $16.42. The company also announced plans to lift its annual common dividend by more than 10% to $2.00 per share.