Grainger Q3 2026: EPS Beats Estimates, Guidance Raised Again

Grainger posted adjusted earnings per share of $12.54 for the third quarter of 2026, beating the consensus estimate of $11.66. Revenue of $5.18 billion also came in above expectations, growing 11.3% from the same period a year ago. Both figures extended a streak of beats that stretches back through most of the past two years.

Adjusted operating margin widened 90 basis points to 16.1%, powered by sales leverage across both of Grainger's main segments. The High-Touch Solutions North America segment grew sales 13.8%, while the Endless Assortment segment, home to Zoro and MonotaRO, grew 11.9% and also expanded its gross margin. Adjusted operating earnings rose 18.2% year over year.

On the back of those results, management lifted its full-year 2026 adjusted EPS guidance to a range of $47.00 to $48.00, up from the prior range of $45.50 to $47.25. Net sales guidance was also raised, to $19.8 to $20.0 billion from the previous $19.4 to $19.7 billion range. CEO D.G. Macpherson described the quarter as reflecting "consistent execution and an improving demand environment" and said the company remains "on track for an exceptional year."

Adjusted EPS of $12.54 excludes $0.12 per share in transaction costs tied to the acquisition of technology assets from Adroit Worldwide Media, against GAAP diluted EPS of $12.42. The prior-year comparison was also distorted by a $196 million loss from Grainger's exit of the U.K. market, which makes the year-over-year GAAP swing look larger than the underlying business improvement.

Full-year share repurchases are now expected to land between $0.975 billion and $1.025 billion, with operating cash flow guidance of $2.35 to $2.45 billion. Grainger spent $278 million on treasury stock purchases in Q3 alone, keeping the buyback pace firmly within that corridor. Risks flagged by management include tariffs, foreign currency effects on MonotaRO, and an interim CFO leadership situation.