Wesco International reported a rise in Q3 revenue, powered by growth in AI-driven data center projects and a rebound in its utility business.
The momentum prompted the Pittsburgh-based electrical and industrial distributor to lift its full-year guidance. For its fiscal Q3 ending Sept. 30, Wesco sales climbed 12.9% to $6.2 billion. That’s up from $5.49 billion a year earlier.
Organic sales, excluding currency and acquisition effects, increased 12.1%. Net income came in at $187.5 million, flat with $189.9 million a year ago.
AI infrastructure remained the centerpiece of that acceleration. Data center revenue hit an all-time high of $1.2 billion. That’s up roughly 60% from a year earlier and represents about 19% of company sales.
The Communications and Security Solutions segment supplies networking, fiber and security systems for so-called “white-space” data center environments. It grew 18% organically. The Electrical and Electronic Solutions unit, which focuses on “gray-space” power and automation systems, posted 12% growth.
“We delivered very strong results in the third quarter and again outperformed the market with our leading portfolio of products, services and solutions,” said John Engel, Wesco’s chairman, president, and CEO. “Sales growth accelerated this year, with organic sales up 6% in the first quarter, 7% in the second quarter and 12% in the third quarter.”
AI and Wesco sales in Q3
Utility and Broadband Solutions returned to expansion after several quarters of decline. It rose 3% year over year as investor-owned utilities boosted spending and broadband projects accelerated.
“Our utility business also continued to show signs of improvement with increased investor-owned utility sales growth in the third quarter,” Engel said.
The company’s push into digital transformation is also gathering speed. Engel said Wesco remains “firmly focused on executing our cross-selling initiatives and enterprise-wide margin improvement program” while advancing its “technology-driven business transformation.”
All three business units are now running early versions of the company’s new digital platform. Wesco designed it to streamline pricing, procurement and project management across global operations. Broader deployment is slated to scale in 2026.
For the first nine months of 2025, total sales rose 6.9% to $17.44 billion, while net income slipped 5.6% to $480.6 million, reflecting heavier working-capital investments tied to record demand. Management called the temporary cash-flow drag a “high-quality problem,” noting that accounts receivable increased alongside record monthly sales in September.
Citing long-term tailwinds in AI infrastructure, electrification, automation and reshoring, Wesco raised its full-year forecast for organic sales growth to 8%–9%, up from 5%–7%. The company also expects adjusted earnings per share between $13.10 and $13.60, slightly above its previous range.
Engel said Wesco’s combination of digital capabilities and end-market exposure positions it for sustained expansion.
“We are building on positive momentum as we prepare for continued market-leading growth in 2026,” he said, pointing to “the enduring secular growth trends of digitalization, including AI-driven data centers and automation, and electrification that includes increased power generation and reliability.”
The company expects those trends to keep fueling demand into 2026, when data-center spending, grid modernization, and automation projects are all projected to remain strong drivers of Wesco’s business.
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