Grainger (GWW) Q2 2025 Earnings
How Did GWW Stock React to Q2 2025 Earnings?
S&P 500 over the same 30 days: +3.54%.
Did GWW Beat Earnings? Q2 2025 Results
No. Grainger reported Q2 2025 earnings of $9.97 a share on Aug 1, 2025, missing the $10.07 consensus estimate by 1.0%. Revenue was $4.6B against a $4.5B estimate.
W.W. Grainger delivered a mixed second quarter, with revenue clearing the bar while earnings fell just short, sending shares sharply lower as investors focused on margin deterioration and a trimmed profit outlook. Net sales rose 5.6% year-over-year to $4.55 billion, edging past the $4.53 billion consensus by 0.59%, but diluted EPS of $9.97 missed the $10.07 estimate by 1.03%, as tariff-related inflation drove unfavorable price/cost timing and LIFO inventory valuation headwinds that compressed consolidated gross profit margin by 80 basis points to 38.5%. The High-Touch Solutions North America segment bore the brunt of those pressures, while the Endless Assortment segment offered a meaningful offset with 19.7% reported sales growth. Looking ahead, Grainger reduced its full-year adjusted diluted EPS guidance to $38.50-$40.25 from a prior range of $39.00-$41.50, and trimmed its gross margin outlook to 38.6%-38.9%, signaling that tariff headwinds are far from resolved, with management pointing to a more meaningful margin recovery not arriving until 2026.
- Growth across all geographies in High-Touch Solutions - N.A.
- Strong performance at both MonotaRO and Zoro driving Endless Assortment growth of 19.7%
- Fewer shares outstanding contributing to diluted EPS growth
- Strong expense leverage in Endless Assortment partially offsetting gross margin pressure
“Our team remains focused on our customers, fostering deep relationships, providing exceptional service and driving innovation through differentiated capabilities.”
Grainger CEO, on the earnings call
What Was Grainger's Outlook in Q2 2025?
Grainger updated its full-year 2025 guidance to reflect anticipated headwinds from tariff impacts. Key updated ranges include: Net sales of $17.9–$18.2 billion (up from $17.6–$18.1 billion); sales growth of 4.4%–5.9%; daily, constant currency sales growth of 4.5%–6.0%; gross profit margin of 38.6%–38.9% (down from 39.1%–39.4%); operating margin of 14.7%–15.1% (down from 15.1%–15.5%); adjusted diluted EPS of $38.50–$40.25 (down from $39.00–$41.50); operating cash flow of $2.05–$2.25 billion; CapEx of $0.55–$0.65 billion (up from $0.45–$0.55 billion); share buybacks of $1.05–$1.15 billion (down from $1.15–$1.25 billion); effective tax rate of ~23.8%. Segment operating margin guidance: High-Touch Solutions - N.A. at 16.5%–16.9% (down from 17.0%–17.4%); Endless Assortment at 9.2%–9.6% (up from 8.5%–9.0%).
GWW YoY Financials
| Metric | Q2 2025 | Q2 2024 | Year over year |
|---|---|---|---|
| Revenue | $4.6B | $4.3B | +5.6% |
| Gross Profit | $1.8B | $1.7B | +3.6% |
| Operating Income | $678.0M | $649.0M | +4.5% |
| Net Income | $482.0M | $470.0M | +2.6% |
Figures from SEC filings and company reports. Not investment advice.