Wesco's Q3: AI Data Centers Drive Double-Digit Growth-and a Higher Outlook
Wesco International put up a strong Q3, with sales up 12.9% to $6.2 billion and organic growth at 12.1%. Data center demand did the heavy lifting, while utilities returned to growth. The company raised full-year guidance on the back of that momentum.
Net income held steady at $187.5 million, roughly flat year over year. Management signaled confidence through 2026, citing durable trends in AI infrastructure, electrification, automation and reshoring.
The numbers that matter
- Total sales: $6.2B, up 12.9% from $5.49B.
- Organic sales: up 12.1%.
- Net income: $187.5M vs. $189.9M (flat).
- Data center revenue: $1.2B, up ~60%; now ~19% of total sales.
- Communications & Security Solutions (white-space): +18% organic.
- Electrical & Electronic Solutions (gray-space): +12% growth.
- Utility & Broadband Solutions: +3% after several soft quarters.
- First nine months of 2025: sales up 6.9% to $17.44B; net income down 5.6% to $480.6M due to working-capital investments supporting record demand.
- Updated 2025 outlook: organic growth 8%-9% (from 5%-7%); adjusted EPS $13.10-$13.60.
Where the demand is coming from
AI infrastructure is the engine. "White-space" builds (networking, fiber, security systems) are moving fast through Communications and Security Solutions. "Gray-space" projects (power, automation, backup) are scaling in Electrical and Electronic Solutions.
Utilities are spending again, especially investor-owned utilities, and broadband projects are accelerating. That's restoring growth in a segment that had been under pressure.
Why this matters for sales teams
- Prioritize AI data center accounts: Hyperscalers, colocation providers, and contractors building white-space and gray-space. Bundle fiber, networking, cabling, power, automation, and security.
- Lead with availability and time-to-install: Speed, allocations, and dependable delivery win deals in high-velocity builds.
- Attach services early: Project design support, staging, kitting, and site logistics increase win rates and margin.
- Cross-sell across units: One project needs both white-space and gray-space. Sell the whole stack to raise deal size and reduce vendor sprawl for the customer.
- Revisit utility and broadband pipelines: Investor-owned utility budgets are loosening. Map upcoming grid hardening, resiliency, and broadband expansion work.
- Use guidance as proof: The raised outlook helps justify multiyear agreements and reserved capacity with key accounts.
Digital execution is accelerating
Wesco is rolling out a new digital platform across all three business units to streamline pricing, procurement, and project management. Early versions are live; broader scale is planned for 2026.
For sellers, that means faster quotes, clearer BOM control, and better project tracking. Bring multi-division proposals together and commit to response-time SLAs-speed wins in this market.
Outlook and timeline
Management is leaning into long-term demand across data centers, grid modernization, and factory automation. The message is clear: budgets are there, and projects are stacking through 2026.
Use this window to lock in strategic agreements, forecast inventory with customers, and secure preferred status on upcoming builds.
Quick actions for your next quarter
- Build a target list of top 25 AI/data center projects. Create a two-offer play: a fast-ship core kit and an expanded bundle with services.
- Partner with operations to secure fiber, cabling, UPS, switchgear, and security allocations for priority accounts.
- Map investor-owned utility opportunities and align proposals to their 2025-2026 spend on reliability and modernization.
- Refresh your talk track: uptime, speed-to-deploy, and total installed cost. Back it with Wesco's updated guidance and segment growth data.
- Set QBRs with your top contractors and integrators; plan multi-quarter demand and lock in pricing bands.
Want the source and sector context? Check Wesco Investor Relations and the U.S. DOE's view on grid modernization priorities.
Level up your sales conversations around AI infrastructure: explore practical, job-focused training here: AI courses by job.
Your membership also unlocks:
