Westcon-Comstor delivers FY26 growth as shift to software and services accelerates

Global technology distributor Westcon-Comstor has reported that its adjusted EBITDA for its financial year ending 28 February 2026 (FY26) grew 15% to $172.4 million, compared with $149.9 million in FY25.

Adjusted EBITDA margin also rose to 8.9%, compared to 8% in FY25.

Other topline figures include a 9.6 percent increase in gross sales to $US5.74 billion (A$7.9 billio), with gross profit sitting at $US499.2 million (A$695 million), up 13.1 percent on the previous year.

Gross margin also climbed from 23.5 percent in FY25 to 25.8 percent in FY26.

Cybersecurity gross sales increased 12.4% to just over US$3 billion, accounting for 52% of total gross sales.

The company said 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 EMEA and APAC".

Westcon also said its 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, while recurring gross sales increased 12.8% to US$3.89 billion.

“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."

Last month, Westcon announced it has joined Microsoft’s Marketplace resale enabled offers  program, a move designed to let its channel partners and vendors accelerate and scale marketplace-led growth by combining hyperscaler reach with its value-added services.