Track market-moving stories before they get noisy

Seth Klarman’s Baupost Group rarely shows its cards, so when the latest 13F filing (holdings as of March 31, 2026, filed May 14, 2026) disclosed his five largest long common-stock positions, the disclosure read like a treasure map. One of them, an industrial distributor most retail investors have never heard of, posted YoY earnings growth of 48.1% while quietly becoming a pure-play on the AI data-center buildout. If Klarman is buying value where nobody is looking, this is the list to reverse-engineer before the next 13F resets the game.

1. Wesco International: The Surprise Data-Center Kingmaker Klarman built his career on mispriced compounders hiding in plain sight, and Wesco International (NYSE:WCC | WCC Price Prediction) is exactly that. The electrical and communications distributor sells the picks and shovels of the AI infrastructure boom, from switchgear to fiber to the copper that connects hyperscaler racks. When Goldman, PineBridge, and Neuberger all frame 2026 as an AI capex-driven multiyear infrastructure cycle spanning data centers, power, and grid upgrades, Wesco sits on the receiving end of every purchase order.

Q1 2026 confirmed the thesis violently. Data center sales of $1.4 billion were up approximately 70% YoY, now representing 24% of total revenue, while backlog jumped 22% to a new record and adjusted diluted EPS climbed 52.5% YoY to $3.37. Management raised full-year 2026 adjusted EPS guidance to $15.00 to $17.00.

Our model tags WCC a BUY with 20.1% upside to a base case of $393.94, backed by 82% bullish analyst sentiment and a confidence level of 0.9. Shares are already up 65.23% over the past year. Klarman had a reason to size this position first. The reason gets bigger when the next name enters the room.

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2. Amazon: The Heavyweight That Still Has Room to Run The obvious anchor. Amazon (NASDAQ:AMZN) is Klarman’s largest disclosed common-stock holding and the highest-conviction way to own the same AI capex cycle Wesco sells into. AWS is the customer that funds the buildout, and Andy Jassy just told the market “AWS is growing 28% (our fastest growth in 15 quarters)… our chips business topped a $20 billion revenue run rate.” That is a hyperscaler compounding faster on a bigger base, exactly what mega-cap bulls need to justify the multiple.

Q1 2026 was a five-peat: EPS of $2.78 vs $1.73 estimate, a 60.69% beat and the fifth consecutive EPS beat, on revenue of $181.52B, up 16.6% YoY. Advertising ran to $17.24B, up 24%, and management guided Q2 sales to $194 to $199B. Meanwhile, prediction markets assign a 98.5% probability that Amazon’s 2026 capex exceeds $170B, with meaningful mass above $200B. That is the demand signal for every downstream infrastructure name on this list.

Our read is BUY with 31.18% upside to $324.47 and a 94% bullish analyst consensus (62 buy or strong buy ratings, 0 sells). Shares are up 8.26% YTD at $247.38. Klarman’s next position swings hard in the opposite direction: value, not growth, and bleeding on the front page.

3. Elevance Health: The Contrarian Managed-Care Bet This is the Klarman trade in its purest form. Elevance Health (NYSE:ELV) is dumped, hated, and pricing in a permanent margin impairment that the company itself is telling investors will reverse. The July 15 earnings report landed with a thud: benefit expense ratio of 89.7%, up 80 basis points, Health Benefits operating gain compressed to $896M from $1.56B YoY, and the stock got hit for -11.31% over one week.

Klarman buys numbers. CEO Gail Boudreaux told investors, “We are raising our 2026 adjusted EPS guidance to at least $27.00… reinforce our confidence in returning to at least 12% adjusted EPS growth in 2027.” Elevance carries $5.3B of remaining buyback authorization and raised operating cash flow guidance to at least $6.0B. On a forward EPS of $32.39, that is an implied P/E of 13.

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Our conviction: BUY with 42.87% upside to a base case of $529.66, backed by zero sell ratings across 22 analysts and a beta of 0.68 that keeps a lid on drawdown volatility. This is the position Klarman would rationally add to on weakness. The fourth name plays a different game entirely: predictable cash and quiet compounding.

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4. Restaurant Brands International: The Cash-Flow Compounder Every Klarman portfolio needs a boring cash machine. Restaurant Brands International (NYSE:QSR) is that name. Franchised royalty streams from Burger King, Tim Hortons, Popeyes, and Firehouse Subs throw off cash regardless of the macro cycle, and the Reclaim the Flame turnaround at Burger King US is finally showing up in comps.

Q1 2026 delivered Burger King US comparable sales of +5.8% vs -1.1% prior year, a 20th consecutive quarter of positive Tim Hortons comps at +1.6%, and free cash flow of $169M, up 212.96%. Management is targeting 8%+ organic adjusted operating income growth for FY2026 and has $500M of share repurchases planned alongside a $0.65 quarterly dividend.

Here is the read: our model tags QSR a HOLD with only 3.45% base case upside to $77.73, because shares are already up 15.1% YTD and are approaching fair value. The beta of 0.53 and 64% analyst bullish sentiment mean this position is doing exactly what Klarman needs it to do: protect capital while the swing positions work. The payoff at #5 is where the real optionality lives.

5. Union Pacific: The Transcontinental Payoff The catalyst nobody else on this list has. Union Pacific (NYSE:UNP) is in the regulatory process to acquire Norfolk Southern and create the first transcontinental railroad in US history. CEO Jim Vena laid it out: “As we advance through the regulatory process to create America’s first transcontinental railroad, we have a solid foundation for another year of industry-leading results.” If the deal clears, the combined entity locks in a coast-to-coast freight moat that nobody can replicate.

The operating base is already elite. Q1 2026 posted an adjusted operating ratio of 59.9%, improved 80 basis points, terminal dwell of 19.7 hours (best-ever, up 11%), and adjusted diluted EPS of $2.93 vs $2.86 estimate. Prediction markets are pricing in a 68% probability UNP beats quarterly earnings at the upcoming July 23 report.

Shares have already moved: up 30.8% YTD and 32.46% over one year to $300.59. Our model reads BUY with 9.52% upside to $329.22, but that base case explicitly excludes merger synergies. The 65% bullish analyst consensus hasn’t fully priced in the transcontinental optionality yet. That is the payoff Klarman is holding.

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The Klarman Playbook, Reassembled Read the five together and the strategy snaps into focus: Wesco and Amazon are the AI capex barbell, Elevance is the bruised value reversal, QSR is the cash-flow ballast, and Union Pacific is the catalyst-driven kicker. Four of the five carry BUY conviction with double-digit or better base case upside from current levels. The next 13F drops in mid-August and will reset the board. Investors waiting for the filing to confirm what the numbers already say are trading position sizing for hindsight.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Amazon didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

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Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Wesco International (WCC - Free Report) WESCO International, Inc. is one of the largest players in the highly fragmented distribution market for electrical construction products in North America.

WCC is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 20.56; value investors should take notice.

For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $15.94 per share. WCC boasts an average earnings surprise of +3.2%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, WCC should be on investors' short list.

On July 07, 2026, WESCO International Inc (WCC) shares fell 3.1%, bringing the current price to $307.21. This decline is notable as it occurs within a 52-week t

On July 02, 2026, WESCO International Inc (WCC) shares fell 4.0% today, closing at $307.89. The stock has experienced significant volatility, with a 52-week hig

, /PRNewswire/ -- Wesco hosted its annual Day of Caring events for employees at locations around the globe, reinforcing the company's commitment to giving back to the communities where employees live and work.

John Tieri, Fire Fighter/EMT Beecher Fire Protection Department and Wesco Account Executive, Electronic and Electrical Solutions Wesco's Day of Caring events provide employees with opportunities to connect with local nonprofit organizations, participate in volunteer activities, and learn more about ways to give back through the company's Wesco Cares program. These efforts include matching gifts, paid volunteer time off, and support for organizations such as the American Red Cross, Habitat for Humanity, and other community partners focused on humanitarian aid, affordable housing and education.

This year's global activities, held in June, included both in-person and virtual volunteer opportunities, as well as events across major Wesco locations, bringing employees together in support of local communities.

During the Day of Caring, Wesco also announced John C. Tieri, Account Executive, Electrical and Electronic Solutions, based in Carol Stream, Illinois, as the recipient of the 2026 Wesco Cares Champion of the Year Award.

The Wesco Cares Champion of the Year Award recognizes employees who demonstrate a strong commitment to making a positive impact beyond the workplace through volunteerism and community engagement.

As a volunteer firefighter and Emergency Medical Technician (EMT), John C. Tieri dedicates significant personal time to serving his community, meeting the same training and certification requirements as full-time first responders while balancing his role at Wesco.

His service includes responding to emergencies, supporting his local fire district, and stepping in during critical situations when additional support is needed. According to his Fire Chief, John is an "exemplary firefighter/EMT and an outstanding person" who consistently goes above and beyond without seeking recognition.

As part of the recognition, John C. Tieri will receive a $2,500 award to donate to an eligible organization of his choice through the Wesco Cares giving platform.

"We are proud to recognize John as our 2026 Wesco Cares Champion of the Year," said Chris Wolf, Executive Vice President, Chief Human Resources Officer and Wesco Cares Executive Sponsor. "His dedication to serving others, both in his community and at Wesco, reflects the spirit of giving back that defines our culture."

Wesco Cares supports employee-led giving and volunteerism through programs that empower employees to contribute their time, talent, and resources to causes that matter most to them. Through these efforts, Wesco continues to make a meaningful impact in communities around the world.

To learn more about Wesco's community impact, visit Wesco in the community.

About Wesco

Wesco International (NYSE: WCC) builds, connects, powers and protects the world. Headquartered in Pittsburgh, Pennsylvania, Wesco is a FORTUNE 500® company with approximately $24 billion in annual sales in 2025 and a leading provider of business-to-business distribution, logistics services and supply chain solutions. Wesco offers a best-in-class product and services portfolio of Electrical and Electronic Solutions, Communications and Security Solutions, and Utility and Broadband Solutions. The Company employs approximately 21,000 people, partners with the industry's premier suppliers, and serves thousands of customers around the world. With millions of products, end-to-end supply chain services, and significant digital capabilities, Wesco provides innovative solutions to meet customer needs across commercial and industrial businesses, technology companies, telecommunications providers, and utilities. Wesco operates more than 700 sites, including distribution centers, fulfillment centers, and sales offices in approximately 50 countries, providing a local presence for customers and a global network to serve multi-location businesses and global corporations.

Contact Information:

Corporate Communications
Jennifer Sniderman
Vice President, Corporate Communications
717-579-6603

SOURCE Wesco International

Wesco International (WCC - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on April 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis maker of electrical and industrial maintenance supplies and construction materials is expected to post quarterly earnings of $2.88 per share in its upcoming report, which represents a year-over-year change of +30.3%.

Revenues are expected to be $5.88 billion, up 10% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Wesco International?For Wesco International, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -3.69%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Wesco International will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Wesco International would post earnings of $3.82 per share when it actually produced earnings of $3.40, delivering a surprise of -10.99%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Wesco International doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Record first quarter reported net sales of $6.1 billion, up 14% YOY Organic sales up 12% YOY Data center sales of $1.4 billion, up ~70% YOY Record total company backlog, up 22% YOY First quarter operating margin of 4.8%, up 30 basis points YOY; adjusted EBITDA margin of 6.4%, up 60 basis points YOY First quarter diluted EPS of $3.11; adjusted diluted EPS of $3.37, up 52.5% YOY First quarter operating cash flow of $221 million, up $193 million YOY; free cash flow of $213 million or 128% of adjusted net income Raising 2026 outlook reflecting an exceptional start to the year , /PRNewswire/ -- Wesco International (NYSE: WCC), a leading provider of business-to-business distribution, logistics services and supply chain solutions, announces its results for the first quarter of 2026.

"We delivered an exceptional start to 2026, building on last year's market outperformance and accelerating business momentum. Sales, backlog, operating margin, adjusted earnings per share, and free cash flow all increased versus the prior year and exceeded our expectations. Record sales of $6.1 billion were up 14% marking our third quarter in a row of double-digit sales growth. Data center sales of $1.4 billion were up approximately 70% and now represent 24% of our total Wesco sales. Backlog was up 22%, to a new record level, reflecting the benefits of secular growth trends and continued effectiveness of our cross-selling program. Profit growth and margin improvement were also excellent, driven by gross margin expansion and strong operating cost leverage. As a result, we delivered adjusted EBITDA margin expansion of 60 basis points, adjusted EBITDA growth of 25%, and adjusted EPS growth of over 50% versus the prior year. Free cash flow generation, at 128% of adjusted net income, was also very strong. The power of our customer value proposition, global capabilities, and leading portfolio of products, services and solutions is clear as we continue to outperform the market," said John Engel, Chairman, President, and CEO.

Mr. Engel concluded, "We are very pleased with our first quarter results and continued positive business momentum to start the year. While uncertainty in the macro-economic environment may present challenges, we're focused on continued strong execution and outperformance under all market conditions. We are raising our full-year 2026 outlook reflecting our exceptional start to the year. As the market leader, and with positive momentum building, I'm confident that Wesco will continue to outperform our markets and deliver superior value to our customers and shareholders in 2026 and beyond."

Key Financial Highlights

Three Months Ended March 31

($ in millions except per share data)

2026
Reported

2025
Reported

Change vs prior
year

GAAP Results

Net sales

$6,080.1

$5,343.7

13.8 %

Selling, general, and administrative expenses

$947.6

$836.3

13.3 %

Operating profit

$293.5

$240.9

21.8 %

Net income attributable to common stockholders

$153.8

$104.0

47.9 %

Earnings per diluted share

$3.11

$2.10

48.1 %

Operating cash flow

$221.4

$28.0

690.7 %

Effective tax rate

21.8 %

23.4 %

(160) basis points

($ in millions except per share data)

2026
Adjusted

2025
Adjusted

Change vs prior
year

Non-GAAP Results*

Organic sales growth

12.3 %

5.6 %

N/A

Gross profit

$1,291.8

$1,125.6

14.8 %

Gross margin

21.2 %

21.1 %

20 basis points

Adjusted selling, general, and administrative expenses

$930.1

$829.0

12.2 %

Adjusted EBITDA

$388.8

$310.7

25.1 %

Adjusted EBITDA margin

6.4 %

5.8 %

60 basis points

Adjusted net income attributable to common stockholders

$166.8

$109.6

52.2 %

Adjusted earnings per diluted share

$3.37

$2.21

52.5 %

Free cash flow

$213.4

$9.4

2,170.2 %

*

Amounts may not foot or recalculate due to rounding.

Net Sales

On an organic basis, which removes differences in foreign exchange rates, sales for the first quarter of 2026 grew by 12.3%. The increase in organic sales reflects volume growth in all three segments (CSS, EES and UBS), as well as a favorable impact from changes in price. We had record backlog at the end of the first quarter of 2026, up by 22% compared to the end of the first quarter of 2025. Gross Profit and Gross Margin

The increase in gross margin for the first quarter of 2026 reflects improved gross margin in the EES segment partially offset by a decline in the UBS segment. Selling, General, and Administrative ("SG&A") Expenses

The increase in SG&A expenses for the first quarter of 2026 is primarily driven by higher salaries and an increase in commissions and incentives due to higher sales and profit. SG&A expenses for the first quarter of 2026 include $17.5 million of digital transformation costs, compared to $7.3 million of digital transformation and restructuring costs for the first quarter of 2025. Adjusted for these costs, SG&A expenses were 15.3% and 15.5% of net sales for the first quarter of 2026 and 2025, respectively, reflecting positive operating cost leverage on the sales growth. Adjusted EBITDA and Adjusted EBITDA Margin

The increase in adjusted EBITDA for the first quarter of 2026 primarily reflects higher sales, lower cost of goods sold as a percentage of sales, and lower SG&A expenses as a percentage of sales, as described above. Effective Tax Rate

The lower effective tax rate for the first quarter of 2026 is largely driven by higher discrete income tax benefits relating to the exercise and vesting of stock-based awards. Adjusted Earnings Per Diluted Share

The increase in adjusted earnings per diluted share in the first quarter of 2026 primarily reflects higher sales, lower cost of goods sold as a percentage of sales, and lower SG&A expenses as a percentage of sales, as described above. Additionally, the prior year period included $14.4 million of preferred stock dividends. The preferred stock was retired in the second quarter of 2025. Operating Cash Flow

Net cash provided by operating activities for the first quarter of 2026 totaled $221.4 million compared to $28.0 million in the first quarter of 2025. The $193.4 million increase is driven by a $105.7 million impact from changes in accounts payable, due to the increase in inventory purchases, as well as the timing of inventory purchases and payments to suppliers as compared to the prior year. Additionally an increase in net income as adjusted for certain non-cash items also contributed to the increase in operating cash flows. Webcast and Teleconference Access

Wesco will conduct a webcast and teleconference to discuss the first quarter of 2026 earnings as described in this News Release on Thursday, April 30, 2026, at 10:00 a.m. E.T. The call will be broadcast live over the internet and can be accessed from the Investor Relations page of the Company's website at https://investors.wesco.com. The call will be archived on this internet site for seven days.

Wesco International (NYSE: WCC) builds, connects, powers and protects the world. Headquartered in Pittsburgh, Pennsylvania, Wesco is a FORTUNE 500® company with approximately $24 billion in annual sales in 2025 and a leading provider of business-to-business distribution, logistics services and supply chain solutions. Wesco offers a best-in-class product and services portfolio of Electrical and Electronic Solutions, Communications and Security Solutions, and Utility and Broadband Solutions. The Company employs approximately 21,000 people, partners with the industry's premier suppliers, and serves thousands of customers around the world. With millions of products, end-to-end supply chain services, and significant digital capabilities, Wesco provides innovative solutions to meet customer needs across commercial and industrial businesses, technology companies, telecommunications providers, and utilities. Wesco operates more than 700 sites, including distribution centers, fulfillment centers, and sales offices in approximately 50 countries, providing a local presence for customers and a global network to serve multi-location businesses and global corporations.

Forward-Looking Statements

All statements made herein that are not historical facts should be considered as "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. These statements include, but are not limited to, statements regarding business strategy, growth strategy, competitive strengths, productivity and profitability enhancement, competition, new product and service introductions, and liquidity and capital resources. Such statements can generally be identified by the use of words such as "anticipate," "plan," "believe," "estimate," "intend," "expect," "project," and similar words, phrases or expressions or future or conditional verbs such as "could," "may," "should," "will," and "would," although not all forward-looking statements contain such words. These forward-looking statements are based on current expectations and beliefs of Wesco's management, as well as assumptions made by, and information currently available to, Wesco's management, current market trends and market conditions and involve risks and uncertainties, many of which are outside of Wesco's and Wesco's management's control, and which may cause actual results to differ materially from those contained in forward-looking statements. Accordingly, you should not place undue reliance on such statements.

Important factors that could cause actual results or events to differ materially from those presented or implied in the forward-looking statements include, among others, the failure to achieve the anticipated benefits of, and other risks associated with, acquisitions, joint ventures, divestitures and other corporate transactions; the inability to successfully integrate acquired businesses; the impact of increased interest rates or borrowing costs; fluctuations in currency exchange rates; evolving impacts from tariffs or other trade tensions between the U.S. and other countries (including implementation of new tariffs and retaliatory measures); failure to adequately protect Wesco's intellectual property or successfully defend against infringement claims; the inability to successfully deploy new technologies, digital products and information systems or to otherwise adapt to emerging technologies in the marketplace, such as those incorporating artificial intelligence (AI); risks relating to our use or reliance on AI; failure to execute on our efforts and programs related to environmental, social and governance (ESG) matters; unanticipated expenditures or other adverse developments related to compliance with new or stricter government policies, laws or regulations, including those relating to data privacy, cybersecurity, competition, sustainability and environmental protection; the inability to successfully develop, manage or implement new technology initiatives or business strategies, including with respect to the expansion of e-commerce or AI capabilities and other digital solutions and digitalization initiatives; disruption of information technology systems or operations; natural disasters (including as a result of climate change), health epidemics, pandemics and other outbreaks; supply chain disruptions; geopolitical conflicts and issues, such as the ongoing Middle East and Russia/Ukraine conflicts; the impact of changing and expanding export controls, sanctions, and data localization rules; the failure to manage the increased risks and impacts of cyber incidents or data breaches; and exacerbation of key materials shortages, inflationary cost pressures, material cost increases, demand volatility, and logistics and capacity constraints, any of which may have a material adverse effect on the Company's business, results of operations and financial condition. All such factors are difficult to predict and are beyond the Company's control. Additional factors that could cause results to differ materially from those described above can be found in Wesco's most recent Annual Report on Form 10-K and other periodic reports filed with the U.S. Securities and Exchange Commission.

Contact Information

Investor Relations

Corporate Communications

Scott Gaffner

Senior Vice President, Investor Relations

[email protected]  

Jennifer Sniderman

Vice President, Corporate Communications

717-579-6603

http://www.wesco.com 

WESCO INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in millions, except per share amounts)

(Unaudited)

Three Months Ended

March 31, 2026

March 31, 2025

Net sales

$           6,080.1

$          5,343.7

Cost of goods sold (excluding depreciation and amortization)

4,788.3

78.8 %

4,218.1

78.9 %

Selling, general and administrative expenses

947.6

15.6 %

836.3

15.7 %

Depreciation and amortization

50.7

48.4

Income from operations

293.5

4.8 %

240.9

4.5 %

Interest expense, net

96.7

86.3

Other (income) expense, net

(0.4)

0.2

Income before income taxes

197.2

3.2 %

154.4

2.9 %

Provision for income taxes

43.1

36.1

Net income

154.1

2.5 %

118.3

2.2 %

Less: Net income attributable to noncontrolling interests

0.3

(0.1)

Net income attributable to WESCO International, Inc.

153.8

2.5 %

118.4

2.2 %

Less: Preferred stock dividends

—

14.4

Net income attributable to common stockholders

$              153.8

2.5 %

$             104.0

1.9 %

Earnings per diluted share attributable to common stockholders

$                3.11

$               2.10

Weighted-average common shares outstanding and common
     share equivalents used in computing earnings per diluted
     common share

49.5

49.6

WESCO INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollar amounts in millions)

(Unaudited)

As of

March 31,
2026

December 31,
2025

Assets

Current assets:

Cash and cash equivalents

$          696.6

$           604.8

Trade accounts receivable, net

4,273.1

4,069.6

Inventories

4,213.1

4,008.8

Other current assets

770.8

773.0

    Total current assets

9,953.6

9,456.2

Goodwill and intangible assets

5,077.5

5,112.6

Other assets

1,933.6

1,926.1

    Total assets

$      16,964.7

$      16,494.9

Liabilities and Equity

Current liabilities:

Accounts payable

$        3,470.5

$        3,030.5

Short-term debt and current portion of long-term debt, net

22.8

25.0

Other current liabilities

1,194.9

1,241.3

    Total current liabilities

4,688.2

4,296.8

Long-term debt, net

5,738.1

5,756.4

Other noncurrent liabilities

1,440.5

1,415.3

    Total liabilities

11,866.8

11,468.5

Equity:

    Total equity

5,097.9

5,026.4

    Total liabilities and equity

$      16,964.7

$      16,494.9

WESCO INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollar amounts in millions)

(Unaudited)

Three Months Ended

March 31,
2026

March 31,
2025

Operating activities:

Net income

$          154.1

$          118.3

Add back (deduct):

Depreciation and amortization

50.7

48.4

Change in trade receivables, net

(216.1)

(188.7)

Change in inventories

(215.2)

(227.4)

Change in accounts payable

449.5

343.8

Other, net

(1.6)

(66.4)

Net cash provided by operating activities

221.4

28.0

Investing activities:

Capital expenditures

(23.4)

(20.4)

Acquisition payments, net of cash acquired

—

(35.2)

Other, net

3.5

1.2

Net cash used in investing activities

(19.9)

(54.4)

Financing activities:

Debt (repayments) borrowings, net(1)

(11.0)

99.7

Payments for taxes related to net-share settlement of equity awards

(22.0)

(18.0)

Repurchases of common stock

(25.0)

(25.0)

Payment of common stock dividends

(24.4)

(22.1)

Payment of preferred stock dividends

—

(14.4)

Other, net

(25.8)

(17.9)

Net cash (used in) provided by financing activities

(108.2)

2.3

Effect of exchange rate changes on cash and cash equivalents

(1.5)

3.1

Net change in cash and cash equivalents

91.8

(21.0)

Cash and cash equivalents at the beginning of the period

604.8

702.6

Cash and cash equivalents at the end of the period

$          696.6

$          681.6

(1)

The three months ended March 31, 2026 includes the issuance of the Company's $650 million aggregate principal amount of 5.250% Senior Notes due 2031 (the "2031 Notes") and $850 million aggregate principal amount of 5.500% Senior Notes due 2034 (the "2034 Notes"). The three months ended March 31, 2025 includes the issuance of the Company's $800 million aggregate principal amount of 6.375% senior notes due 2033 (the "2033 Notes").

NON-GAAP FINANCIAL MEASURES

In addition to the results provided in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP") above, this earnings release includes certain non-GAAP financial measures. These financial measures include organic sales growth, gross profit,  gross margin, earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA, adjusted EBITDA margin, financial leverage, free cash flow, adjusted selling, general and administrative expenses, adjusted income from operations, adjusted operating margin, adjusted other non-operating (income) expense, adjusted provision for income taxes, adjusted income before income taxes, adjusted net income, adjusted net income attributable to WESCO International, Inc., adjusted net income attributable to common stockholders, and adjusted earnings per diluted share. The Company believes that these non-GAAP measures are useful to investors as they provide a better understanding of our financial condition and results of operations on a comparable basis. Additionally, certain non-GAAP measures either focus on or exclude items impacting comparability of results such as digital transformation costs, restructuring costs, cloud computing arrangement amortization, and the related income tax effects, allowing investors to more easily compare the Company's financial performance from period to period. Management does not use these non-GAAP financial measures for any purpose other than the reasons stated above.

WESCO INTERNATIONAL, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in millions, except per share amounts and ratios)

(Unaudited)

Organic Sales Growth by Segment:

Three Months Ended

Growth/(Decline)

March 31, 2026

March 31, 2025

Reported
Sales

Acquisition

Foreign
Exchange

Workday

Organic
Sales

EES

$         2,244.2

$         2,065.3

8.7 %

— %

1.7 %

— %

7.0 %

CSS

2,478.9

2,000.3

23.9 %

— %

2.0 %

— %

21.9 %

UBS

1,357.0

1,278.1

6.2 %

— %

0.4 %

— %

5.8 %

Total net sales

$         6,080.1

$         5,343.7

13.8 %

— %

1.5 %

— %

12.3 %

Organic Sales Growth by Segment - Sequential:

Three Months Ended

Growth/(Decline)

March 31, 2026

December 31,
2025

Reported
Sales 

Acquisition

Foreign
Exchange

Workday

Organic
Sales

EES

$         2,244.2

$         2,272.9

(1.3) %

— %

0.5 %

(1.6) %

(0.2) %

CSS

2,478.9

2,424.7

2.2 %

— %

0.4 %

(1.6) %

3.4 %

UBS

1,357.0

1,371.0

(1.0) %

— %

0.2 %

(1.6) %

0.4 %

Total net sales

$         6,080.1

$         6,068.6

0.2 %

— %

0.4 %

(1.6) %

1.4 %

Note: Organic sales growth is a non-GAAP financial measure of sales performance. Organic sales growth is calculated by deducting the percentage impact from acquisitions and divestitures for one year following the respective transaction, fluctuations in foreign exchange rates and number of workdays from the reported percentage change in consolidated net sales. Workday impact represents the change in the number of operating days period-over-period after adjusting for weekends and public holidays in the United States; There was no change in the number of workdays in the first quarter of 2026 compared to the first quarter of 2025. The first quarter of 2026 had one less workday than the fourth quarter of 2025.

Three Months Ended

Gross Profit:

March 31,
2026

March 31,
2025

Net sales

$       6,080.1

$       5,343.7

Cost of goods sold (excluding depreciation and amortization)

4,788.3

4,218.1

Gross profit

$       1,291.8

$       1,125.6

Gross margin

21.2 %

21.1 %

Note: Gross profit is a financial measure commonly used in the distribution industry. Gross profit is calculated by deducting cost of goods sold, excluding depreciation and amortization, from net sales. Gross margin is calculated by dividing gross profit by net sales.

WESCO INTERNATIONAL, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in millions, except per share amounts and ratios)

(Unaudited)

Three Months Ended

March 31, 2026

March 31, 2025

Adjusted SG&A Expenses:

SG&A expenses

$          947.6

$          836.3

Digital transformation costs(1)

(17.5)

(6.2)

Restructuring costs(2)

—

(1.1)

Adjusted SG&A expenses

$          930.1

$          829.0

Percentage of Net sales

15.3 %

15.5 %

Adjusted Income from Operations:

Income from operations

$          293.5

$          240.9

Digital transformation costs(1)

17.5

6.2

Restructuring costs(2)

—

1.1

Adjusted income from operations

$          311.0

$          248.2

Adjusted income from operations margin %

5.1 %

4.6 %

Adjusted Other (Income) Expense, net:

Other (income) expense, net

$             (0.4)

$              0.2

Loss on termination of business arrangement(3)

—

(0.3)

Adjusted other income, net

$             (0.4)

$             (0.1)

Adjusted Provision for Income Taxes:

Provision for income taxes

$            43.1

$            36.1

Income tax effect of adjustments to income from
     operations and other expense (income), net(4)

4.5

2.0

Adjusted provision for income taxes

$            47.6

$            38.1

Adjusted Net Income Attributable to Common
     Stockholders:

Net income attributable to common stockholders

$          153.8

$          104.0

Digital transformation costs(1)

17.5

6.2

Restructuring costs(2)

—

1.1

Loss on termination of business arrangement(3)

—

0.3

Income tax effect of adjustments to income from
     operations and other expense (income), net(4)

(4.5)

(2.0)

Adjusted net income attributable to common
     stockholders

$          166.8

$          109.6

(1)

Digital transformation costs include costs associated with certain digital transformation initiatives.

(2)

Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan.

(3)

Loss on termination of business arrangement represents the loss recognized as a result of management's decision to terminate a business arrangement with a third party.

(4)

The adjustments to income from operations and other (income) expense, net have been tax effected at rates of 25.8% and 26.4% for the three months ended March 31, 2026 and 2025, respectively.

WESCO INTERNATIONAL, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in millions, except per share amounts and ratios)

(Unaudited)

Three Months Ended

Adjusted Earnings per Diluted Share:

March 31,
2026

March 31,
2025

Adjusted income from operations

$        311.0

$        248.2

Interest expense, net

96.7

86.3

Adjusted other income, net

(0.4)

(0.1)

Adjusted income before income taxes

214.7

162.0

Adjusted provision for income taxes

47.6

38.1

Adjusted net income

167.1

123.9

Net income (loss) attributable to noncontrolling interests

0.3

(0.1)

Adjusted net income attributable to WESCO International, Inc.

166.8

124.0

Preferred stock dividends

—

14.4

Adjusted net income attributable to common stockholders

$        166.8

$        109.6

Diluted shares

49.5

49.6

Adjusted earnings per diluted share

$          3.37

$          2.21

Note: For the three months ended March 31, 2026, SG&A expenses, income from operations, provision for income taxes, net income attributable to common stockholders and earnings per diluted share have been adjusted to exclude digital transformation costs and the related income tax effects. For the three months ended March 31, 2025, SG&A expenses, income from operations, other non-operating (income) expense, provision for income taxes, net income attributable to common stockholders and earnings per diluted share have been adjusted to exclude digital transformation costs, restructuring costs, the loss on termination of business arrangement, and the related income tax effects. These non-GAAP financial measures provide a better understanding of our financial results on a comparable basis.

WESCO INTERNATIONAL, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in millions, except per share amounts and ratios)

(Unaudited)

Three Months Ended March 31, 2026

EBITDA and Adjusted EBITDA by Segment:

EES

CSS

UBS

Corporate

Total

Net income attributable to common stockholders

$      164.1

$      188.3

$      121.7

$    (320.3)

$      153.8

Net income (loss) attributable to noncontrolling interests

0.1

0.4

—

(0.2)

0.3

Provision for income taxes(1)

—

—

—

43.1

43.1

Interest expense, net(1)

—

—

—

96.7

96.7

Depreciation and amortization

13.2

19.8

8.5

9.2

50.7

EBITDA

$      177.4

$      208.5

$      130.2

$    (171.5)

$      344.6

Other expense (income), net

6.8

13.1

(0.4)

(19.9)

(0.4)

Stock-based compensation expense

0.8

1.6

0.9

12.8

16.1

Digital transformation costs(2)

—

—

—

17.5

17.5

Cloud computing arrangement amortization(3)

—

—

—

11.0

11.0

Adjusted EBITDA

$      185.0

$      223.2

$      130.7

$    (150.1)

$      388.8

Adjusted EBITDA margin %

8.2 %

9.0 %

9.6 %

6.4 %

(1)  The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the Corporate tax and
      treasury functions.

(2)  Digital transformation costs include costs associated with certain digital transformation initiatives.

(3)  Cloud computing arrangement amortization consists of expense recognized in selling, general and administrative expenses for capitalized
      implementation costs for cloud computing arrangements to support our digital transformation initiatives.

Three Months Ended March 31, 2025

EBITDA and Adjusted EBITDA by Segment:

EES

CSS

UBS

Corporate

Total

Net income attributable to common stockholders

$      125.1

$      127.2

$      130.3

$    (278.6)

$      104.0

Net (loss) income attributable to noncontrolling interests

(0.1)

0.1

—

(0.1)

(0.1)

Preferred stock dividends

—

—

—

14.4

14.4

Provision for income taxes(1)

—

—

—

36.1

36.1

Interest expense, net(1)

—

—

—

86.3

86.3

Depreciation and amortization

12.2

19.0

7.8

9.4

48.4

EBITDA

$      137.2

$      146.3

$      138.1

$    (132.5)

$      289.1

Other expense (income), net

4.4

10.9

(0.2)

(14.9)

0.2

Stock-based compensation expense

1.0

1.3

0.4

7.5

10.2

Digital transformation costs(2)

—

—

—

6.2

6.2

Cloud computing arrangement amortization(3)

—

—

—

3.9

3.9

Restructuring costs(4)

—

—

—

1.1

1.1

Adjusted EBITDA

$      142.6

$      158.5

$      138.3

$    (128.7)

$      310.7

Adjusted EBITDA margin %

6.9 %

7.9 %

10.8 %

5.8 %

(1)  The reportable segments do not incur income taxes and interest expense as these costs are centrally controlled through the corporate tax and
      treasury functions.

(2)  Digital transformation costs include costs associated with certain digital transformation initiatives.

(3)  Cloud computing arrangement amortization consists of expense recognized in selling, general and administrative expenses for capitalized
      implementation costs for cloud computing arrangements to support our digital transformation initiatives.

(4)  Restructuring costs include severance costs incurred pursuant to an ongoing restructuring plan.

Note: EBITDA, adjusted EBITDA and adjusted EBITDA margin % are non-GAAP financial measures that provide indicators of the Company's performance and its ability to meet debt service requirements. For the three months ended March 31, 2026, adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization before other non-operating expenses (income), non-cash stock-based compensation expense, digital transformation costs, and cloud computing arrangement amortization. For the three months ended March 31, 2025, adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization before other non-operating expenses (income), non-cash stock-based compensation expense, digital transformation costs, cloud computing arrangement amortization, and restructuring costs.

WESCO INTERNATIONAL, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in millions, except per share amounts and ratios)

(Unaudited)

Twelve Months Ended

Financial Leverage:

March 31,
2026

December 31,
2025

Net income attributable to common stockholders

$            695.6

$            645.8

Net income attributable to noncontrolling interests

2.6

2.3

Gain on redemption of Series A Preferred Stock

(32.9)

(32.9)

Preferred stock dividends

12.9

27.3

Provision for income taxes

220.4

213.4

Interest expense, net

397.2

386.7

Depreciation and amortization

199.9

197.6

EBITDA

$         1,495.7

$         1,440.2

Other income, net

(10.1)

(9.6)

Stock-based compensation expense

46.4

40.5

Digital transformation costs(1)

46.5

35.2

Cloud computing arrangement amortization(2)

37.3

30.2

Restructuring costs(3)

(1.1)

—

Adjusted EBITDA

$         1,614.7

$         1,536.5

As of

March 31,
2026

December 31,
2025

Short-term debt and current portion of long-term debt, net

$              22.8

$              25.0

Long-term debt, net

5,738.1

5,756.4

Debt issuance costs and debt discount(4)

63.6

48.0

Total debt

5,824.5

5,829.4

Less: Cash and cash equivalents

696.6

604.8

Total debt, net of cash

$         5,127.9

$         5,224.6

Financial leverage ratio

3.2

3.4

(1)

Digital transformation costs include costs associated with certain digital transformation initiatives.

(2)

Cloud computing arrangement amortization consists of expense recognized in selling, general and administrative expenses for capitalized implementation costs for cloud computing arrangements to support our digital transformation initiatives.

(3)

Reduction to restructuring costs represents the reversal of certain severance costs previously incurred pursuant to an ongoing restructuring plan.

(4)

Debt is presented in the Condensed Consolidated Balance Sheets net of debt issuance and debt discount costs.

Note: Financial leverage ratio is a non-GAAP measure of the use of debt. Financial leverage ratio is calculated by dividing total debt, excluding debt issuance costs, and debt discount, net of cash, by adjusted EBITDA. EBITDA is defined as the trailing twelve months earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as the trailing twelve months EBITDA before other non-operating expense (income), non-cash stock-based compensation expense, digital transformation costs, cloud computing arrangement amortization, and restructuring costs.

WESCO INTERNATIONAL, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in millions, except per share amounts and ratios)

(Unaudited)

Three Months Ended

Free Cash Flow:

March 31,
2026

March 31,
2025

Cash flow provided by operations

$         221.4

$          28.0

Less: Capital expenditures

(23.4)

(20.4)

Add: Other adjustments

15.4

1.8

Free cash flow

$         213.4

$           9.4

  Percentage of Adjusted net income

127.7 %

7.6 %

Note: Free cash flow is a non-GAAP financial measure of liquidity. Capital expenditures are deducted from operating cash flow to determine free cash flow. Free cash flow is available to fund investing and financing activities. For the three months ended March 31, 2026 and 2025, the Company paid for certain costs related to digital transformation and restructuring. Such expenditures have been added back to operating cash flow to determine free cash flow for such periods. Our calculation of free cash flow may not be comparable to similar measures used by other companies.

SOURCE Wesco International

For the quarter ended March 2026, Wesco International (WCC - Free Report) reported revenue of $6.08 billion, up 13.8% over the same period last year. EPS came in at $3.37, compared to $2.21 in the year-ago quarter.

The reported revenue represents a surprise of +3.43% over the Zacks Consensus Estimate of $5.88 billion. With the consensus EPS estimate being $2.88, the EPS surprise was +17.18%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Wesco International performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Sales- EES (Electrical & Electronic Solutions): $2.24 billion versus $2.25 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +8.7% change.Net Sales- UBS (Utility & Broadband Solutions): $1.36 billion versus the three-analyst average estimate of $1.33 billion. The reported number represents a year-over-year change of +6.2%.Net Sales- CSS (Communications & Security Solutions): $2.48 billion versus $2.3 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +23.9% change.Adjusted EBITDA- Corporate: $-150.1 million versus the three-analyst average estimate of $-135.1 million.Adjusted EBITDA- UBS (Utility & Broadband Solutions): $130.7 million versus the three-analyst average estimate of $128.94 million.Adjusted EBITDA- CSS (Communications & Security Solutions): $223.2 million versus the three-analyst average estimate of $193.99 million.Adjusted EBITDA- EES (Electrical & Electronic Solutions): $185 million compared to the $169.15 million average estimate based on three analysts.View all Key Company Metrics for Wesco International here>>>

Shares of Wesco International have returned +8.1% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

On May 11, 2026, WESCO International Inc WCC shares rose 3.1% today, bringing the current price to $366.30. Over the past year, the stock has experienced significant volatility, trading between a 52-week low of $160.70 and a high of $368.90.

GF Value™ verdict: Current price is $366.30 vs GF Value™ of $202.44, indicating the stock is 80.9% overvalued.GF Score™: 86/100 (Strong), suggesting a solid overall company score based on key financial metrics.Most notable signal: Insider activity shows significant selling with $61.0M sold compared to $0.4M bought in the last 3 months. Is WCC Overvalued or Undervalued? The current market price of WESCO International Inc WCC is $366.30, significantly higher than the GF Value™ estimate of $202.44. This indicates that the stock is 80.9% overvalued, according to GuruFocus' proprietary valuation methodology. The GF Valuation label categorizes WCC as "Significantly Overvalued," which poses a risk for potential investors, as the current price does not reflect the underlying intrinsic value based on historical trading multiples, past business growth, and future performance estimates.

The substantial gap between the market price and the estimated fair value suggests that investors may be paying a premium that is not justified by the company's fundamentals. This overvaluation could lead to a price correction if the market reassesses WCC's true worth in the coming periods. Investors should exercise caution and consider the potential risks associated with such a significant overvaluation.

How Does WCC's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)26.0x13.2x Forward P/E22.9xN/A The current P/E ratio of 26.0x is 97% above WCC's 5-year median P/E of 13.2x, indicating that the stock is trading well above its historical valuation levels. The forward P/E of 22.9x also suggests that future earnings may not justify the current stock price, aligning with the GF Value™ verdict of being significantly overvalued. This P/E analysis further reinforces the concerns regarding the sustainability of WCC's current price level.

What Does WCC's GF Score™ Tell Us? MetricRating GF Score™86 Financial Strength5/10 Profitability8/10 Growth9/10 Valuation3/10 Momentum10/10 WCC's GF Score™ of 86/100 indicates a strong overall performance, particularly in the areas of Growth (9/10) and Momentum (10/10). However, the company's Financial Strength (5/10) and Valuation (3/10) scores highlight weaknesses that may be concerning for potential investors. The relatively high profitability rank (8/10) suggests that WCC is capable of generating strong earnings, but the low valuation score indicates that the stock is currently expensive compared to its intrinsic value.

What Are Insiders Doing with WCC Stock? Recent insider activity at WESCO International Inc has shown a notable pattern, with insiders selling $61.0M worth of shares while only purchasing $0.4M in the last three months. This significant selling compared to minimal buying may signal a lack of confidence in the stock's current valuation or future performance from those with inside knowledge of the company. Such a trend could indicate that insiders believe the stock is overvalued at its current price level.

What This Means for Investors Based on the analysis of GF Value™, WESCO International Inc WCC is currently overvalued. The significant difference between the current market price and the estimated fair value suggests that potential risks may outweigh the benefits at this time.

For the complete analysis, visit the WESCO International Inc WCC stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is WCC's GF Score™?

WCC's GF Score™ is 86/100, indicating a strong overall performance based on key financial metrics.

Is WCC overvalued or undervalued?

WCC is considered significantly overvalued, with a current price of $366.30 compared to a GF Value™ of $202.44.

What is WCC's P/E ratio?

WCC's P/E (TTM) is 26.0x, which is 97% above its 5-year median P/E of 13.2x, indicating it is trading at a premium compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."

Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase, investors find themselves invested in shares that have limited to no upside or even a downside. So, betting on a stock just by looking at the traditional momentum parameters could be risky at times.

A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.

There are several stocks that currently pass through the screen and Wesco International (WCC - Free Report) is one of them. Here are the key reasons why this stock is a great candidate.

Investors' growing interest in a stock is reflected in its recent price increase. A price change of 16.8% over the past four weeks positions the stock of this maker of electrical and industrial maintenance supplies and construction materials well in this regard.

While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. WCC meets this criterion too, as the stock gained 20.4% over the past 12 weeks.

Moreover, the momentum for WCC is fast paced, as the stock currently has a beta of 1.54. This indicates that the stock moves 54% higher than the market in either direction.

Given this price performance, it is no surprise that WCC has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.

In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped WCC earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Most importantly, despite possessing fast-paced momentum features, WCC is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. WCC is currently trading at 0.73 times its sales. In other words, investors need to pay only 73 cents for each dollar of sales.

So, WCC appears to have plenty of room to run, and that too at a fast pace.

In addition to WCC, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.

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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Wesco International (WCC - Free Report) WESCO International, Inc. is one of the largest players in the highly fragmented distribution market for electrical construction products in North America.

WCC is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Computer and Technology stock. WCC has a Momentum Style Score of B, and shares are up 20.9% over the past four weeks.

Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.35 to $15.90 per share. WCC also boasts an average earnings surprise of +3.2%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, WCC should be on investors' short list.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Wesco International (WCC - Free Report) WESCO International, Inc. is one of the largest players in the highly fragmented distribution market for electrical construction products in North America.

WCC is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 21.88; value investors should take notice.

For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.35 to $15.90 per share. WCC boasts an average earnings surprise of +3.2%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, WCC should be on investors' short list.

, /PRNewswire/ -- The Board of Directors of Wesco International (NYSE: WCC) today declared a quarterly cash dividend on all of the issued and outstanding shares of common stock, in an amount equal to $0.50 per share. The dividend is payable on June 30, 2026 to the holders of record of the common stock at the close of business on June 12, 2026.

About Wesco 

Wesco International (NYSE: WCC) builds, connects, powers and protects the world. Headquartered in Pittsburgh, Pennsylvania, Wesco is a FORTUNE 500® company with approximately $24 billion in annual sales in 2025 and a leading provider of business-to-business distribution, logistics services and supply chain solutions. Wesco offers a best-in-class product and services portfolio of Electrical and Electronic Solutions, Communications and Security Solutions, and Utility and Broadband Solutions. The Company employs approximately 21,000 people, partners with the industry's premier suppliers, and serves thousands of customers around the world. With millions of products, end-to-end supply chain services, and significant digital capabilities, Wesco provides innovative solutions to meet customer needs across commercial and industrial businesses, technology companies, telecommunications providers, and utilities. Wesco operates more than 700 sites, including distribution centers, fulfillment centers, and sales offices in approximately 50 countries, providing a local presence for customers and a global network to serve multi-location businesses and global corporations.

Contact Information

Investor Relations

Scott Gaffner, CFA
Senior Vice President, Investor Relations
[email protected]

Corporate Communications

Jennifer Sniderman
Vice President, Corporate Communications
[email protected]

SOURCE Wesco International

, /PRNewswire/ -- Wesco International (NYSE: WCC), a leading provider of business-to-business distribution, logistics services, and supply chain solutions, today announced it has entered into a definitive agreement to acquire Newark Engineering Group ("Newark"), a Singapore-based provider of engineered cooling solutions and lifecycle services for data centers.

The acquisition expands Wesco's capabilities in data center cooling and lifecycle services and strengthens its presence in the fast-growing Southeast Asia region.

Newark specializes in the design, supply, installation, commissioning and maintenance of advanced thermal management systems that are mission-critical to data center performance and reliability. The company serves customers across Southeast Asia, including Singapore, Malaysia, and Indonesia, delivering integrated solutions across the full data center lifecycle—from design and installation to ongoing maintenance and optimization.

Under the terms of the agreement, Wesco will acquire 100% of Newark for a cash-free, debt-free purchase price of 175 million Singapore dollars (approximately $136 million USD).

"Newark provides integrated, turnkey cooling solutions, with strong partnerships and a blue-chip customer base that includes global technology and Fortune 500 companies," said John Engel, Chairman, President, and Chief Executive Officer of Wesco.

Mr. Engel continued, "This acquisition expands our participation in the data center value chain, particularly in engineered cooling and lifecycle services, and provides a strong growth platform in Southeast Asia. It's a service-led business with attractive margins, and we see a clear path to above-market growth by leveraging Wesco's global customer relationships and expanding solutions portfolio. We expect this acquisition to enhance our growth profile, support margin expansion, and generate attractive returns within the first year."

The combination creates meaningful commercial opportunities by bringing together Newark's established regional customer relationships with Wesco's global account coverage. Wesco expects to expand access to hyperscale, enterprise, and colocation data center customers while increasing share of wallet through cross-selling electrical, communications, and supply chain solutions across Newark's installed base.

Newark generated approximately USD$60 million in revenue in 2025 and is EBITDA margin accretive to the Wesco portfolio with a purchase multiple below Wesco's current trading multiple.

"Partnering with Wesco will accelerate our growth and expand our ability to serve data center customers across Southeast Asia," said Fanny Lee, Managing Director of Newark Engineering Group. "Wesco's global platform and complementary capabilities will allow us to broaden our solutions portfolio, access new customers, and scale the business."

The transaction is expected to close in the third quarter of 2026, subject to customary regulatory approvals and closing conditions.

About Newark Engineering Group

Headquartered in Singapore with offices in Malaysia and Indonesia, Newark Engineering Group is a provider of mission-critical cooling and thermal management solutions, delivering integrated customized HVAC solutions spanning design support, equipment supply, installation, commissioning and lifecycle services for data centers and other mission-critical infrastructure across Southeast Asia.

About Wesco International

Wesco International (NYSE: WCC) builds, connects, powers and protects the world. Headquartered in Pittsburgh, Pennsylvania, Wesco is a FORTUNE 500® company with approximately $24 billion in annual sales in 2025 and a leading provider of business-to-business distribution, logistics services and supply chain solutions. Wesco offers a best-in-class portfolio of electrical, communications, and utility solutions, serving customers across commercial, industrial, data center, and infrastructure markets.

Wesco Contact Information:

Scott Gaffner
Senior Vice President, Investor Relations
[email protected]

Jennifer Sniderman
Vice President, Corporate Communications
[email protected]

SOURCE Wesco International

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Wesco International (WCC - Free Report) WESCO International, Inc. is one of the largest players in the highly fragmented distribution market for electrical construction products in North America.

WCC is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 21.02; value investors should take notice.

Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.35 to $15.90 per share. WCC also boasts an average earnings surprise of +3.2%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, WCC should be on investors' short list.