W.W. Grainger Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.75%.
Did GWW Beat Earnings? Q1 2026 Results
W.W. Grainger delivered a standout first quarter of 2026, posting results that cleared Wall Street's expectations by a wide margin and sending shares up more than 7% in the aftermath. Diluted EPS of $11.65 beat the consensus estimate of $10.21 by 14.08%, while net sales of $4.74 billion grew 10.1% year over year and came in 3.63% ahead of forecasts. The primary engine behind the beat was a combination of robust operating leverage and accelerating momentum in the Endless Assortment segment, where reported sales surged 19.6% on contributions from both MonotaRO in Japan and Zoro in the U.S., while company-wide gross margin expanded 30 basis points to 40.0% and operating margin improved 110 basis points to 16.7%. Cash generation was equally compelling, with operating cash flow rising to $739 million. Confidence in the trajectory prompted management to raise full-year 2026 adjusted diluted EPS guidance to $44.25 to $46.25 and lift the net sales outlook to $19.20 billion to $19.60 billion, while also approving a 10% increase to the quarterly dividend.
- Volume growth and price inflation from tariff cost pass-through in High-Touch Solutions - N.A.
- Strong performance at both MonotaRO and Zoro driving Endless Assortment growth
- Gross margin expansion from favorable product mix and freight in High-Touch Solutions - N.A.
- Margin improvement at Zoro boosting Endless Assortment gross profit margin by 40 bps
- Sales leverage improvement in both segments
- Benefit from exit of U.K. market (Cromwell divestiture and Zoro U.K. closure)
- Fewer shares outstanding contributing to EPS growth
“We delivered great results in the first quarter driven by strong execution across both segments. Despite ongoing uncertainty with tariffs and the broader geopolitical climate, we're seeing positive signs with the demand environment and are increasing our 2026 guidance to reflect the strong start and continued momentum.”
Grainger CEO, on the earnings call
Forward Guidance & Outlook
Grainger raised its full-year 2026 guidance. Net sales are now expected at $19.2 billion to $19.6 billion (previously $18.7 billion to $19.1 billion), with sales growth of 6.7% to 9.1% and daily, organic constant currency sales growth of 9.5% to 12.0%. Gross profit margin is expected at 39.2% to 39.5%. Operating margin guidance was raised to 15.6% to 16.0% (from 15.4% to 15.9%). Adjusted diluted EPS is now expected at $44.25 to $46.25 (previously $42.25 to $44.75). Operating cash flow guidance increased to $2.2 billion to $2.4 billion. CapEx remains at $0.55 billion to $0.65 billion and share buybacks at $0.95 billion to $1.05 billion. Segment operating margin guidance: High-Touch Solutions - N.A. at 17.0% to 17.4% and Endless Assortment at 10.2% to 10.6%. Effective tax rate expected at approximately 25.0%.
GWW YoY Financials
Figures from SEC filings and company reports. Not investment advice.