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Grainger

Grainger (GWW) Q2 2026 Earnings

Reported Aug 4, 2026 at 8:03 AM ET · SEC Source

Q2 26 EPS

$12.01

BEAT +6.26%

Est. $11.30

Q2 26 Revenue

$5.02B

BEAT +1.33%

Est. $4.96B

vs S&P Since Q2 26

-7.2%

TRAILING MARKET

GWW -6.7% vs S&P +0.5%

Market Reaction

Did GWW Beat Earnings? Q2 2026 Results

W.W. Grainger delivered a strong second quarter for fiscal 2026, posting results that cleared Wall Street's expectations on both the top and bottom lines and prompted the industrial distributor to raise its full-year outlook. Diluted EPS of $12.01 be… Read more W.W. Grainger delivered a strong second quarter for fiscal 2026, posting results that cleared Wall Street's expectations on both the top and bottom lines and prompted the industrial distributor to raise its full-year outlook. Diluted EPS of $12.01 beat the consensus estimate of $11.30 by 6.26% and marked a 20.5% gain from the prior-year quarter's $9.97, while net sales of $5.02 billion edged ahead of the $4.96 billion consensus by 1.33% and grew 10.3% year over year. The single most material driver behind the profit outperformance was gross margin expansion of 100 basis points to 39.5%, aided by $43.00 million in IEEPA tariff refunds on directly imported products that reduced cost of goods sold, alongside benefits from the company's exit of the U.K. Market completed in late 2025. Operating earnings climbed 19.0% to $807.00 million. Looking ahead, Grainger lifted its full-year net sales guidance to $19.40 billion–$19.70 billion and raised its diluted adjusted EPS range to $45.50–$47.25, reflecting continued confidence in demand trends heading into the second half.

Key Takeaways

  • • Volume growth and tariff-driven price inflation in High-Touch Solutions - N.A.
  • • Strong performance at both MonotaRO and Zoro driving Endless Assortment growth
  • • IEEPA tariff refunds of $43 million reducing cost of goods sold
  • • Benefit from U.K. market exit (Cromwell divestiture and Zoro U.K. closure)
  • • Gross margin expansion in both segments
  • • Sales leverage improvement in Endless Assortment
  • • Fewer shares outstanding contributing to EPS growth

GWW Forward Guidance & Outlook

Grainger raised its full-year 2026 guidance. Net sales are now expected to be $19.4–$19.7 billion (up from $19.2–$19.6 billion), with sales growth of 8.4%–10.0% and daily organic constant currency sales growth of 11.5%–13.0%. Gross profit margin is expected at 39.3%–39.6%, operating margin at 15.8%–16.2%, and diluted adjusted EPS of $45.50–$47.25 (up from $44.25–$46.25). Operating cash flow is guided at $2.25–$2.4 billion, CapEx at $0.575–$0.65 billion, and share buybacks at $0.975–$1.05 billion. The effective tax rate is expected at approximately 25.0%. Segment operating margin guidance was raised to 17.2%–17.6% for High-Touch Solutions - N.A. and 10.4%–10.8% for Endless Assortment.

24/7 Wall St

GWW YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

“Despite ongoing geopolitical uncertainty, we executed well during the second quarter and delivered exceptional service to customers. Sales remained strong and core operating profitability was in line with expectations.”

— D.G. Macpherson, Q2 2026 Earnings Press Release

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