WESCO’s fourth quarter saw a muted market response, as the company's non-GAAP earnings per share fell short of Wall Street’s expectations despite sales growth in line with analyst forecasts. Management attributed the positive revenue trend to exceptional performance in its data center solutions business, which reported approximately 30% year-over-year growth, as well as solid results from communications, security, and electrical solutions. However, CEO John Engel acknowledged that ongoing sales and margin pressures in the utility and broadband segment, particularly with public power customers, remained a significant challenge. Engel also noted, "We saw a clear inflection back to growth with our investor-owned utilities in the second quarter of last year."

Is now the time to buy WCC? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From WESCO’s Q4 Earnings Call

• David Manthey (Baird) asked about the exclusion of supplier price increases from guidance and if incremental pricing would improve margins. CFO David Schulz explained that price benefits are only included once realized, noting recent increases have not fully translated into results.
• Sam Darkatsh (Raymond James) pressed on the timing and consistency of data center growth in 2026. Schulz responded that project activity should remain stable quarter to quarter, with January growth trends matching Q4’s strong performance.
• Guy Drummond Hardwick (Barclays) questioned order book trends across segments excluding data centers. CEO John Engel said all business units grew backlog in Q4, highlighting positive momentum in electrical and electronic solutions with a new segment leader.
• Deane Dray (RBC Capital Markets) sought clarity on persistent public power weakness within UBS and its connection to investor-owned utility trends. Engel described ongoing inventory and competitive challenges in public power, but pointed to a strong outlook for investor-owned utilities and grid services.
• Tommy Moll (Stephens) inquired about the sustainability of data center sales run rates and potential for further step changes. Engel rejected the notion of a peak, citing a rising demand curve for AI-driven data centers and greater customer visibility into future opportunities.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be watching (1) the pace of adoption and margin impact from WESCO’s digital transformation rollout, (2) the performance of grid services and data center segments as indicators of secular demand strength, and (3) signs of recovery in public power sales and margins. Execution on working capital initiatives and continued share gains in data center infrastructure will also serve as key milestones.

WESCO currently trades at $307.10, up from $301.69 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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