W.W. Grainger (NYSE:GWW – Get Free Report) announced its earnings results on Tuesday. The industrial products company reported $12.01 earnings per share for the quarter, beating analysts’ consensus estimates of $11.30 by $0.71, Zacks reports. W.W. Grainger had a return on equity of 48.73% and a net margin of 9.92%.The company had revenue of $5.02 billion during the quarter, compared to analyst estimates of $4.96 billion. During the same period last year, the company posted $9.97 earnings per share. The firm’s quarterly revenue was up 10.3% compared to the same quarter last year. W.W. Grainger updated its FY 2026 guidance to 45.500-47.250 EPS.
Here are the key takeaways from W.W. Grainger’s conference call:
- Strong second-quarter performance: Daily organic constant-currency sales increased 13.7%, operating margin reached 16.1%, and diluted EPS rose more than 20% to $12.01. Growth accelerated across both High-Touch Solutions and Endless Assortment, supported by improving MRO demand, manufacturing, government, contractor, and data-center-related activity.
- Grainger raised its full-year outlook, now expecting daily organic constant-currency sales growth of 11.5%–13.0%, operating margin of 15.8%–16.2%, and EPS of $45.50–$47.25. Preliminary July sales were up more than 13%, supporting expectations for third-quarter sales growth of roughly 12%.
- Endless Assortment momentum remained strong, with Zoro U.S. sales up 18.4% and MonotaRO sales up 24% in local-currency, local-day terms; segment operating margin expanded 160 basis points to 11.5%. High-Touch also benefited from strong volume, share gains, and profitable project activity, including data-center infrastructure.
- Gross-margin performance faces second-half pressure from lower-margin project mix, higher freight and product costs tied to Middle East disruptions, private-label cost headwinds, and the absence of most of the second-quarter tariff-refund benefit. Grainger expects September pricing actions to address these costs, but third-quarter operating margin is projected to decline sequentially to the mid-15% range.
- CFO Deidra Merriwether will leave on September 4, 2026, to pursue another opportunity, with Controller Laurie Thomson serving as interim CFO while Grainger begins a search for a permanent successor. Management said the transition should not affect day-to-day operations.
W.W. Grainger Stock Performance
Shares of GWW traded down $6.96 during trading hours on Thursday, hitting $1,278.12. The company had a trading volume of 132,707 shares, compared to its average volume of 287,312. W.W. Grainger has a 12 month low of $906.52 and a 12 month high of $1,419.91. The firm has a market cap of $60.34 billion, a price-to-earnings ratio of 32.61, a PEG ratio of 2.37 and a beta of 1.04. The business has a fifty day moving average of $1,340.67 and a 200-day moving average of $1,210.29. The company has a quick ratio of 1.60, a current ratio of 2.81 and a debt-to-equity ratio of 0.53.
W.W. Grainger Announces Dividend
Insider Transactions at W.W. Grainger
In other news, SVP Jonny M. Leroy sold 854 shares of the stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $1,231.06, for a total transaction of $1,051,325.24. Following the transaction, the senior vice president owned 1,554 shares in the company, valued at approximately $1,913,067.24. This trade represents a 35.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Paige K. Robbins sold 1,457 shares of W.W. Grainger stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $1,232.29, for a total value of $1,795,446.53. Following the sale, the vice president directly owned 2,232 shares of the company’s stock, valued at $2,750,471.28. This represents a 39.50% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 2,624 shares of company stock worth $3,232,291. Company insiders own 6.30% of the company’s stock.
Institutional Investors Weigh In On W.W. Grainger
Several institutional investors and hedge funds have recently bought and sold shares of the company. Compound Planning Inc. lifted its stake in W.W. Grainger by 12.3% during the fourth quarter. Compound Planning Inc. now owns 668 shares of the industrial products company’s stock worth $674,000 after purchasing an additional 73 shares during the last quarter. Axxcess Wealth Management LLC boosted its position in W.W. Grainger by 101.7% during the 4th quarter. Axxcess Wealth Management LLC now owns 2,023 shares of the industrial products company’s stock worth $2,041,000 after buying an additional 1,020 shares during the period. Birchwood Financial Partners Inc. bought a new stake in W.W. Grainger during the 4th quarter worth approximately $50,000. Corient Private Wealth LLC increased its position in W.W. Grainger by 20.9% in the 4th quarter. Corient Private Wealth LLC now owns 47,927 shares of the industrial products company’s stock valued at $48,361,000 after acquiring an additional 8,293 shares during the period. Finally, Widmann Financial Services Inc. increased its position in W.W. Grainger by 1.0% in the 4th quarter. Widmann Financial Services Inc. now owns 1,025 shares of the industrial products company’s stock valued at $1,034,000 after acquiring an additional 10 shares during the period. Institutional investors own 80.70% of the company’s stock.
Analyst Ratings Changes
A number of analysts recently weighed in on GWW shares. Wall Street Zen downgraded shares of W.W. Grainger from a “buy” rating to a “hold” rating in a research report on Saturday, August 1st. Morgan Stanley upped their target price on shares of W.W. Grainger from $1,190.00 to $1,300.00 and gave the company an “equal weight” rating in a research note on Wednesday, May 27th. DA Davidson started coverage on shares of W.W. Grainger in a report on Tuesday, June 16th. They issued a “neutral” rating and a $1,250.00 target price on the stock. Stephens cut shares of W.W. Grainger from an “overweight” rating to an “equal weight” rating and set a $1,355.00 price target on the stock. in a research report on Tuesday, July 14th. Finally, Royal Bank Of Canada decreased their price target on shares of W.W. Grainger from $1,460.00 to $1,428.00 and set a “sector perform” rating for the company in a report on Wednesday. Two research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $1,270.50.
View Our Latest Analysis on GWW
W.W. Grainger Company Profile
W.W. Grainger, Inc (NYSE: GWW) is an industrial supply distributor founded in 1927 and headquartered in Lake Forest, Illinois. The company supplies maintenance, repair and operations (MRO) products and services to businesses, institutions and government customers. Over its long history Grainger has developed a broad product assortment and a national distribution network that supports operations across a range of end markets, including manufacturing, healthcare, hospitality, transportation and public sector organizations.
Grainger’s product portfolio spans core categories such as electrical and lighting, safety and personal protective equipment, material handling, motors and power transmission, plumbing and HVAC, fasteners and adhesives, hand and power tools, and janitorial and facility supplies.
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