Cybersecurity business surpasses $3 billion in sales as distributor accelerates transition to recurring, higher-margin revenue streams
Westcon-Comstor has reported strong financial results for the fiscal year ended February 28, 2026, delivering growth in revenue, profitability, and margins as the company continues its strategic shift toward software, services, and recurring business models.
The global technology distributor recorded gross sales of $5.74 billion in FY26, representing a 9.6% increase over the previous year’s $5.24 billion. Gross profit rose 13.1% year-on-year to $499.2 million, while gross margin improved from 23.5% to 25.8%, reflecting increased contributions from higher-value software and services offerings.
The company also reported a 15% increase in adjusted EBITDA, reaching $172.4 million, with EBITDA margin expanding to 8.9%.
A major driver of growth was the distributor’s cybersecurity business, which generated $3.02 billion in gross sales, up 12.4% from FY25. Cybersecurity now accounts for 52% of Westcon-Comstor’s total gross sales, highlighting continued demand for advanced security solutions and managed services across Europe, the Middle East and Africa (MEA), and Asia-Pacific (APAC).
“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.” — David Grant, Chief Executive Officer, Westcon-Comstor
The company’s transformation toward recurring revenue streams continued to gain momentum. Non-hardware sales, including software and services, increased to 71% of total gross sales, compared with 68% a year earlier. Recurring revenue rose 12.8% to $3.89 billion, representing 68% of overall sales and providing greater business predictability and resilience.
David Grant, Chief Executive Officer of Westcon-Comstor, said the company’s performance reflected strong execution against both financial and strategic objectives.
“FY26 was another year of strong execution, with progress across our key financial and strategic priorities. We have delivered sustained growth in gross sales while significantly increasing profitability and expanding margins,” Grant said.
The company believes its software and services-led strategy will help partners navigate ongoing volatility in hardware markets while creating more scalable and repeatable revenue opportunities.
Commenting on regional performance, Rakesh Parbhoo, Executive Vice President, Middle East and Africa at Westcon-Comstor, highlighted strong momentum across the MEA market, driven by increasing investments in cloud, cybersecurity, AI, and new consumption models.
He noted that the region’s strong adoption of software and services is creating opportunities for partners to build recurring revenue streams while supporting customers throughout the technology lifecycle.
Callum McGregor, Chief Financial Officer and Chief Operating Officer at Westcon-Comstor, said the company enters FY27 with strong fundamentals, a healthy business pipeline, and a future-ready operating model positioned to capitalize on growth opportunities in AI, automation, cloud services, and cybersecurity.
The results underscore the growing importance of value-added distribution as organizations increasingly seek integrated technology solutions, lifecycle support, and recurring service-based engagements in an evolving digital economy.
