Grainger (GWW) Q3 2025 Earnings
How Did GWW Stock React to Q3 2025 Earnings?
S&P 500 over the same 30 days: +0.27%.
Did GWW Beat Earnings? Q3 2025 Results
Yes. Grainger reported Q3 2025 earnings of $10.21 a share on Oct 31, 2025, beating the $9.95 consensus estimate by 2.6%. Revenue was $4.7B against a $4.6B estimate.
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
What Was Grainger's Outlook in Q3 2025?
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
| Metric | Q3 2025 | Q3 2024 | Year over year |
|---|---|---|---|
| Revenue | $4.7B | $4.4B | +6.1% |
| Gross Profit | $1.8B | $1.7B | +4.5% |
| Operating Income | $511.0M | $686.0M | −25.5% |
| Net Income | $294.0M | $486.0M | −39.5% |
Figures from SEC filings and company reports. Not investment advice.