Westcon-Comstor has announced strong financial results for FY26, with gross sales rising 9.6% to $5.74 billion. The global distributor saw gross profit climb 13.1% to $499.2 million, underpinned by a strategic pivot toward software, services, and cybersecurity. Cybersecurity now represents 52% of total sales, while recurring revenue accounts for 68% of business, helping the company mitigate hardware pricing volatility and improve overall margins.
Gross sales increased 9.6% year-on-year to US $5.74 billion (FY25: $5.24bn), while gross profit rose 13.1% to $499.2 million (FY25: $441.2m). Gross margin improved to 25.8% (FY25: 23.5%), reflecting momentum in higher-value areas.
Adjusted EBITDA grew 15% to $172.4m (FY25: $149.9m), with adjusted EBITDA margin rising to 8.9% (FY25: 8.0%).
The results reflect sustained progress against Westcon-Comstor’s strategic priorities, including continued expansion of its cybersecurity business.
Cybersecurity gross sales increased 12.4% to $3.02bn (FY25: $2.68bn), accounting for 52% of total gross sales (FY25: 51%). Cybersecurity growth was driven by sustained demand for advanced, multivendor security solutions and the company’s ability to support channel partners in increasingly complex customer environments across its three operating regions of Europe, the Middle East and Africa (MEA) and Asia-Pacific (APAC).
Meanwhile the distributor’s shift to software and services is helping to reduce exposure to structural pricing volatility in hardware markets for both it and its ecosystem of channel partners.
Non-hardware gross sales, including software and services, rose to 71% of total gross sales (FY25: 68%), while recurring gross sales increased 12.8% to $3.89bn (FY25: $3.45bn).
Recurring business now represents 68% of total gross sales (FY25: 66%), further strengthening consistency, predictability and repeatability.
These trends reflect the evolving role of value-added distribution, as partners and vendors increasingly look for support in enabling solution lifecycle selling and scaling services-led business models.
“FY26 was another year of strong execution, with progress across our key financial and strategic priorities,” said David Grant, CEO at Westcon-Comstor. “We have delivered sustained growth in gross sales while significantly increasing profitability and expanding margins. Our continued shift towards lifecycle selling, software and services is strengthening the resilience of our business and aligning us to areas of the market with more predictable demand. Distribution can play a central role in helping partners navigate the volatility we’re seeing in hardware pricing, providing the insight, intelligence and agility to manage risk and maintain momentum. Looking to the future we see huge opportunities in AI and automation, along with platform and marketplace-led motions, as we enable partners to turn capability into packaged, scalable offerings that drive repeatable revenue.”
“Our performance in FY26 demonstrates the continued success and resilience of our business, and our ability to sustain growth despite a challenging macroeconomic backdrop,” said Callum McGregor, Chief Financial Officer and Chief Operating Officer at Westcon-Comstor. “Profitability has grown ahead of gross sales, supported by improved mix and disciplined execution. At the same time, we have further increased the proportion of recurring and non-hardware gross sales, strengthening predictability and positioning us for continued growth. With strong fundamentals, a healthy pipeline and a future-ready business model, we are well placed to build on this momentum in FY27 and beyond.”
“The Middle East and Africa continues to be one of the most dynamic regions in the global tech ecosystem. Across MEA we’re seeing bold investment, fast-moving innovation agendas and a real appetite to adopt new consumption models, from software and cloud services through to security and AI-enabled solutions,” said Rakesh Parbhoo, Executive Vice President, Middle East and Africa at Westcon-Comstor. “Our strong FY26 performance in MEA reflects how closely we’re working with partners and vendors on the ground: helping them build capability, move faster and take a lifecycle view of customer needs rather than treating each deal as a one-off. As our mix shifts further towards software and services, we’re in a strong position to support more repeatable, scalable outcomes for partners. That’s one of many reasons why we’re optimistic about the prospects for our business and the channel across the region.”
