W.W. Grainger Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.27%.
Did GWW Beat Earnings? Q3 2025 Results
W.W. Grainger delivered a beat on both the top and bottom lines in Q3 2025, with adjusted diluted EPS of $10.21 clearing the $9.95 consensus estimate by 2.58% and revenue of $4.66 billion edging past expectations by 0.30% on 6.1% year-over-year growth. The headline story, however, was a $196 million asset impairment charge tied to Grainger's planned exit from the U.K. market via the divestiture of its Cromwell business, which dragged reported operating earnings down 25.5% and sent the effective tax rate spiking to 34.7%; strip out that non-cash hit and adjusted operating earnings grew 3.1% to $707 million. Strength in the Endless Assortment segment, where sales surged 18.2%, powered by MonotaRO and Zoro, helped offset margin pressure in the core North American business from tariff-related cost inflation. Looking ahead, Grainger narrowed its full-year adjusted diluted EPS guidance to $39.00 to $39.75 and trimmed its net sales outlook to $17.80 to $18.00 billion, reflecting a more cautious macro view while absorbing known tariff impacts.
- High-Touch Solutions - N.A. growth driven by volume growth and improving price contribution as tariff costs are passed through
- Endless Assortment segment growth driven by strong performance at both MonotaRO and Zoro
- Adjusted EPS growth driven by sales growth and fewer shares outstanding
- Gross profit margin declined 60 basis points due to tariff-related inflation causing unfavorable price/cost timing and LIFO inventory valuation headwinds in High-Touch Solutions
- Endless Assortment gross profit margin improved 60 basis points
“We delivered results in-line with our expectations for the quarter, reinforcing the value and differentiated experience Grainger consistently creates for our customers.”
Grainger CEO, on the earnings call
Forward Guidance & Outlook
Grainger narrowed its full-year 2025 guidance. Net sales are now expected in the range of $17.8 billion to $18.0 billion (previously $17.9–$18.2 billion), with sales growth of 3.9%–4.7% and daily, organic constant currency sales growth of 4.4%–5.1%. Gross profit margin is guided at 38.9%–39.1% (previously 38.6%–38.9%). Adjusted operating margin is expected at 15.0%–15.2% (previously 14.7%–15.1%). Adjusted diluted EPS guidance was narrowed to $39.00–$39.75 (previously $38.50–$40.25). Operating cash flow is expected at $2.10–$2.20 billion, CapEx at $0.625–$0.675 billion, and share buybacks at $1.05–$1.15 billion. The effective tax rate is expected at approximately 23.8%. Segment adjusted operating margins are guided at 16.9%–17.0% for High-Touch Solutions - N.A. and 9.2%–9.5% for Endless Assortment. The guidance includes certain known tariff impacts.
GWW YoY Financials
Figures from SEC filings and company reports. Not investment advice.