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Wesco International (WCC)
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Wesco International (WCC) AI Stock Analysis

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WCC

Wesco International

(NYSE:WCC)

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Outperform 74 (OpenAI - 4o)
Rating:74Outperform
Price Target:
$293.00
▲(12.15% Upside)
Wesco International's strong earnings call performance and technical momentum are key strengths, driving the overall score. However, financial performance concerns, particularly around profitability and leverage, along with moderate valuation, temper the overall outlook.
Positive Factors
Revenue Growth
Consistent revenue growth across key segments like CSS and EES demonstrates Wesco's ability to capture market opportunities and expand its customer base, indicating a strong market position and potential for sustained growth.
Data Center Expansion
Significant growth in data center sales highlights Wesco's strategic focus on high-demand sectors, positioning the company well to benefit from trends in digital infrastructure and AI-driven data centers.
Leadership Change
The appointment of a new executive with extensive leadership experience is expected to enhance strategic execution in the EES unit, potentially driving growth in electrification and automation sectors.
Negative Factors
Gross Margin Pressure
Declining gross margins indicate potential challenges in maintaining pricing power and cost efficiency, which could impact profitability if not addressed through strategic cost management.
Utility Segment Challenges
Continued challenges in the utility segment suggest potential headwinds in achieving growth targets, as slower recovery in public power could affect overall sales momentum.
UBS Sales Decline
Declining UBS sales highlight vulnerabilities in certain market segments, indicating the need for strategic adjustments to mitigate utility market headwinds and sustain growth.

Wesco International (WCC) vs. SPDR S&P 500 ETF (SPY)

Wesco International Business Overview & Revenue Model

Company DescriptionWesco International, Inc. (WCC) is a leading provider of electrical, industrial, and communications products and services, serving a diverse range of sectors including construction, utilities, manufacturing, and telecommunications. The company operates through various segments, including electrical and electronic materials, and offers a broad portfolio of products such as lighting, wiring, safety equipment, and automation solutions. With a strong focus on supply chain management and value-added services, Wesco supports its customers in optimizing their operations and enhancing efficiency.
How the Company Makes MoneyWesco International generates revenue primarily through the sale of electrical and industrial products, as well as providing related services. The company's revenue model is based on a combination of direct sales to customers, distribution partnerships, and supply chain solutions. Key revenue streams include the sale of electrical components and systems, lighting solutions, safety and security products, and automation technologies. Additionally, Wesco benefits from long-term contracts with large customers in various industries, which provide a stable source of income. Strategic partnerships with manufacturers and suppliers also enhance its product offerings and contribute to its earnings by enabling Wesco to offer competitive pricing and comprehensive solutions to its clients.

Wesco International Earnings Call Summary

Earnings Call Date:Oct 30, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 17, 2026
Earnings Call Sentiment Positive
WESCO reported strong sales growth across its segments, particularly in data centers, and improved earnings per share. However, challenges remain in the utility segment and reduced free cash flow outlook. Despite these challenges, the company's positive outlook and raised guidance suggest overall strong performance.
Q3-2025 Updates
Positive Updates
Record Sales Growth
WESCO achieved an all-time record for quarterly sales at $6.2 billion, with organic sales growth of 12% in Q3, marking the fourth consecutive quarter of accelerating momentum.
Data Center Segment Surge
Data center sales set another quarterly record at $1.2 billion, up 60% year-over-year, representing 19% of total company sales. Trailing 12-month data center sales are now close to $4 billion.
Improved Earnings per Share
Adjusted EPS grew 9.5% year-over-year and 16% sequentially, driven by improved operating performance.
Raised Full Year Outlook
WESCO raised its full-year outlook for organic sales growth to 8-9%, adjusted EBITDA, and adjusted EPS, reflecting increased business momentum.
Negative Updates
Reduced Free Cash Flow Outlook
The full-year free cash flow outlook was reduced due to increased working capital requirements associated with rising demand and sales growth rates.
Utility Segment Challenges
Public power softness continues, with competitive pressures leading to lower gross margins within public power markets.
Gross Margin Contraction
Gross margin contracted 80 basis points to 21.3% year-over-year, reflecting consistent project and product mix dynamics.
Company Guidance
During WESCO's 2025 Third Quarter Earnings Call, the company highlighted significant growth across various metrics, showcasing strong performance and an enhanced outlook for the year. They reported record quarterly sales of $6.2 billion, marking a 12% increase in organic sales compared to the previous year. This growth was driven by 18% organic growth in Communications and Security Solutions, 12% in Electrical and Electronic Solutions, and a return to growth in Utility and Broadband Solutions. Total data center sales set another record at $1.2 billion, up 60% year-over-year, comprising 19% of total Q3 sales. The company raised its full-year outlook for organic sales growth, adjusted EBITDA, and adjusted EPS while lowering its free cash flow outlook due to increased working capital demands. WESCO anticipates continued strong performance in 2026, driven by secular growth trends in digitalization, electrification, and supply chain resiliency.

Wesco International Financial Statement Overview

Summary
Wesco International demonstrates strong financial health with robust profitability, efficient cash flow management, and a conservative leverage position. Despite a slight dip in net income growth, the company maintains solid operational metrics and a healthy balance sheet, positioning it well for future stability and growth.
Income Statement
75
Positive
Wesco International demonstrates strong profitability with a solid gross profit margin of 10.69% and a net profit margin of 2.98% for TTM (Trailing-Twelve-Months). The company shows impressive revenue growth over recent years, with a slight dip in net income. EBIT and EBITDA margins remain robust, supporting operational efficiency.
Balance Sheet
70
Positive
The balance sheet reflects a healthy equity position with a debt-to-equity ratio of 0.01 for TTM, indicating low leverage, which reduces financial risk. The equity ratio of 29.35% is stable, though a slight decline in stockholders' equity suggests potential areas for improvement. Return on equity is moderate at 13.94%, reflecting adequate returns to shareholders.
Cash Flow
60
Neutral
Wesco's cash flow statement is strong, with a positive free cash flow growth rate and a high free cash flow to net income ratio of 0.93 for TTM, indicating efficient cash generation. The operating cash flow to net income ratio is also favorable at 1.08, highlighting robust operational cash generation capability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue22.93B21.82B22.39B21.42B18.22B12.33B
Gross Profit4.78B4.71B4.84B4.66B3.79B2.33B
EBITDA1.40B1.50B1.56B1.61B1.05B468.64M
Net Income645.80M717.60M765.50M860.50M465.40M100.56M
Balance Sheet
Total Assets16.55B15.06B15.06B14.81B12.62B11.88B
Cash, Cash Equivalents and Short-Term Investments571.90M702.60M524.10M527.30M212.58M449.13M
Total Debt6.51B5.68B5.96B5.93B5.13B5.31B
Total Liabilities11.71B10.10B10.03B10.36B8.84B8.54B
Stockholders Equity4.84B4.97B5.04B4.45B3.78B3.34B
Cash Flow
Free Cash Flow250.00M1.01B400.90M-88.37M12.39M487.26M
Operating Cash Flow329.70M1.10B493.20M11.04M67.14M543.93M
Investing Cash Flow-309.70M40.40M-89.60M-283.57M2.54M-3.74B
Financing Cash Flow-148.20M-928.30M-403.90M584.03M-310.78M3.48B

Wesco International Technical Analysis

Technical Analysis Sentiment
Positive
Last Price261.25
Price Trends
50DMA
219.44
Positive
100DMA
209.27
Positive
200DMA
188.93
Positive
Market Momentum
MACD
9.09
Negative
RSI
75.15
Negative
STOCH
91.19
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WCC, the sentiment is Positive. The current price of 261.25 is above the 20-day moving average (MA) of 224.74, above the 50-day MA of 219.44, and above the 200-day MA of 188.93, indicating a bullish trend. The MACD of 9.09 indicates Negative momentum. The RSI at 75.15 is Negative, neither overbought nor oversold. The STOCH value of 91.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WCC.

Wesco International Risk Analysis

Wesco International disclosed 30 risk factors in its most recent earnings report. Wesco International reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Wesco International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$12.71B20.5013.06%0.68%5.28%1.97%
$9.56B24.3622.10%0.68%4.03%5.93%
$46.83B27.3448.98%0.90%4.83%-3.60%
£48.88B26.7432.29%1.34%3.80%9.26%
$47.12B38.4832.74%2.13%6.92%5.98%
$4.73B23.7814.34%4.01%-1.35%-22.24%
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WCC
Wesco International
261.25
78.41
42.88%
AIT
Applied Industrial Technologies
253.33
22.25
9.63%
FAST
Fastenal Company
41.04
2.94
7.72%
MSM
MSC Industrial
84.79
7.55
9.77%
GWW
WW Grainger
966.32
-120.34
-11.07%
FERG
Ferguson PLC
247.56
52.84
27.14%

Wesco International Corporate Events

Wesco International Reports Strong Q3 2025 Performance
Oct 31, 2025

Wesco International, a Fortune 500 company headquartered in Pittsburgh, Pennsylvania, is a leading provider of business-to-business distribution, logistics services, and supply chain solutions, offering a comprehensive portfolio of products and services across various sectors including electrical and electronic solutions, communications and security solutions, and utility and broadband solutions.

Business Operations and StrategyFinancial Disclosures
Wesco International Reports Record Q3 2025 Sales Growth
Positive
Oct 30, 2025

Wesco International reported record third-quarter 2025 net sales of $6.2 billion, marking a 12.9% year-over-year increase. The company experienced significant growth in organic sales, particularly in the data center sector, which saw a 60% rise. The company’s operating margin improved, and it raised its full-year outlook for sales growth, adjusted EBITDA, and adjusted EPS. Despite a reduction in its free cash flow outlook due to increased working capital, Wesco remains focused on cross-selling initiatives and margin improvement, positioning itself for continued growth in 2026.

The most recent analyst rating on (WCC) stock is a Hold with a $222.00 price target. To see the full list of analyst forecasts on Wesco International stock, see the WCC Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Wesco International Announces Release Agreement with Mr. Squires
Neutral
Sep 12, 2025

On September 10, 2025, Wesco International entered into a Release agreement with Mr. Squires, which will be effective on September 18, 2025, unless revoked by Mr. Squires before that date. The agreement includes a general release of claims, non-competition, non-solicitation, non-disparagement, and confidentiality provisions, along with severance and tax equalization benefits related to equity grants during Mr. Squires’ expatriate assignment.

The most recent analyst rating on (WCC) stock is a Buy with a $255.00 price target. To see the full list of analyst forecasts on Wesco International stock, see the WCC Stock Forecast page.

Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Wesco International Appoints New Executive for EES Unit
Positive
Aug 26, 2025

Wesco International announced the appointment of Daniel Castillo as Executive Vice President and General Manager of its Electrical and Electronic Solutions (EES) unit, effective September 1, 2025. Castillo, who brings extensive leadership experience from companies like Brinks, JELD-WEN, and Cree Lighting, will succeed Nelson Squires, who is retiring on September 30, 2025. This leadership change comes as Wesco’s EES unit reports a 6% year-over-year sales increase in the second quarter, driven by growth in OEM, Construction, and Industrial sectors, and is poised to capitalize on trends in electrification, AI-driven data centers, automation, IoT, and reshoring to North America.

The most recent analyst rating on (WCC) stock is a Buy with a $241.00 price target. To see the full list of analyst forecasts on Wesco International stock, see the WCC Stock Forecast page.

Wesco International Reports Strong Q2 Growth Amid Challenges
Aug 2, 2025

Wesco International’s latest earnings call painted a generally positive picture, with the company reporting strong sales growth and record performance in its data center segment. The call also highlighted improved profitability and a strengthened balance sheet, although challenges in the UBS segment and pressures on gross margins were noted. The overall sentiment was optimistic, supported by an increase in full-year guidance, reflecting confidence in sustained growth.

Wesco International Reports Strong Q2 2025 Growth
Aug 1, 2025

Wesco International, a Fortune 500 company based in Pittsburgh, is a prominent provider of business-to-business distribution, logistics services, and supply chain solutions across various sectors including electrical and electronic solutions, communications and security solutions, and utility and broadband solutions.

Business Operations and StrategyFinancial Disclosures
Wesco International Reports Strong Q2 2025 Sales Growth
Positive
Jul 31, 2025

Wesco International reported a 7.7% year-over-year increase in net sales for the second quarter of 2025, with organic sales rising by 7.2%. The company saw significant growth in its data center sales, which surpassed $1 billion, marking a 65% increase from the previous year. The redemption of preferred stock in June improved cash flow and earnings per share, while the company raised its full-year organic sales growth outlook based on positive momentum. Wesco’s backlog increased both year-over-year and sequentially across all business units, and the company remains focused on executing cross-selling initiatives and margin improvement programs.

The most recent analyst rating on (WCC) stock is a Buy with a $190.00 price target. To see the full list of analyst forecasts on Wesco International stock, see the WCC Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 04, 2025