W.W. Grainger Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −2.49%.
Did GWW Beat Earnings? Q4 2025 Results
W.W. Grainger delivered a mixed fourth quarter for fiscal 2025, posting solid top-line growth while falling just short on the bottom line amid a handful of unexpected cost pressures. Revenue climbed 4.5% year over year to $4.42 billion, edging past the $4.40 billion consensus estimate, but diluted EPS of $9.44 came in fractionally below the $9.46 forecast, a miss of just 0.21%, as an unfavorable effective tax rate of 22.8% compared to 20.1% in the year-ago period weighed on profitability. Operating margin contracted 70 basis points to 14.3%, hurt by elevated healthcare costs and softer growth in the High-Touch Solutions North America segment, though the Endless Assortment segment provided a meaningful offset with 14.3% reported sales growth. The company's <a href="https://247wallst.com/investing/2025/12/08/grainger-generates-five-dollars-of-cash-for-every-dollar-paid-to-shareholders/">strong cash generation capacity</a> remained evident, with $2.02 billion in full-year operating cash flow. Looking ahead, Grainger guided 2026 adjusted EPS to $42.25 to $44.75, with revenue expected to reach $18.70 to $19.10 billion and operating margin expanding to 15.4% to 15.9%.
- Continued growth across most customer end markets in High-Touch Solutions - N.A.
- Strong performance at both MonotaRO and Zoro driving Endless Assortment segment growth
- Daily, organic constant currency sales growth of 4.6% in Q4 2025
- Fewer shares outstanding partially offsetting EPS headwinds
“In 2025, we executed well, delivering exceptional service and a best-in-class experience for our customers across both our High-Touch Solutions and Endless Assortment segments. Despite a challenging macro environment, we drove profitable share gain, made strong progress with our strategic initiatives, and operated with resiliency. I'm very proud of the Grainger team and believe we are poised to drive strong performance moving forward.”
Grainger CEO, on the earnings call
Forward Guidance & Outlook
For 2026, Grainger guides net sales of $18.7–$19.1 billion (4.2%–6.7% reported growth; 6.5%–9.0% daily, organic constant currency growth), gross profit margin of 39.2%–39.5%, operating margin of 15.4%–15.9%, diluted EPS of $42.25–$44.75, operating cash flow of $2.125–$2.325 billion, capital expenditures of $0.55–$0.65 billion, share buybacks of $0.95–$1.05 billion, and an effective tax rate of ~25.0%. Segment operating margins are guided at 16.9%–17.4% for High-Touch Solutions - N.A. and 10.0%–10.5% for Endless Assortment. All guidance is on an adjusted basis.
GWW YoY Financials
Figures from SEC filings and company reports. Not investment advice.