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Analysts on Wall Street project that W.W. Grainger (GWW - Free Report) will announce quarterly earnings of $11.28 per share in its forthcoming report, representing an increase of 13.1% year over year. Revenues are projected to reach $4.95 billion, increasing 8.8% from the same quarter last year.

The consensus EPS estimate for the quarter has been revised 0.2% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

Bearing this in mind, let's now explore the average estimates of specific W.W. Grainger metrics that are commonly monitored and projected by Wall Street analysts.

Based on the collective assessment of analysts, 'Net Sales- Endless Assortment' should arrive at $1.07 billion. The estimate suggests a change of +15.7% year over year.

Analysts forecast 'Net Sales- High-Touch Solutions N.A.' to reach $3.88 billion. The estimate points to a change of +9.4% from the year-ago quarter.

Analysts' assessment points toward 'Total Reported Growth' reaching 10.6%. Compared to the present estimate, the company reported 5.1% in the same quarter last year.

The collective assessment of analysts points to an estimated 'Operating earnings (losses)- Endless Assortment' of $110.66 million. Compared to the current estimate, the company reported $92.00 million in the same quarter of the previous year.

It is projected by analysts that the 'Operating earnings (losses)- High-Touch Solutions N.A.' will reach $663.24 million. The estimate is in contrast to the year-ago figure of $589.00 million.

View all Key Company Metrics for W.W. Grainger here>>>

W.W. Grainger shares have witnessed a change of +1.6% in the past month, in contrast to the Zacks S&P 500 composite's -1.5% move. With a Zacks Rank #3 (Hold), GWW is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Wall Street expects a year-over-year increase in earnings on higher revenues when W.W. Grainger (GWW - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 4. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis seller of maintenance and other supplies is expected to post quarterly earnings of $11.28 per share in its upcoming report, which represents a year-over-year change of +13.1%.

Revenues are expected to be $4.95 billion, up 8.8% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.24% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for W.W. Grainger?For W.W. Grainger, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.50%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that W.W. Grainger will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that W.W. Grainger would post earnings of $10.2 per share when it actually produced earnings of $11.65, delivering a surprise of +14.22%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

W.W. Grainger appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Arrowstreet Capital Limited Partnership lessened its holdings in W.W. Grainger, Inc. (NYSE:GWW – Free Report) by 3.8% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 43,974 shares of the industrial products company’s stock after selling 1,744 shares during the quarter. Arrowstreet Capital Limited Partnership owned approximately 0.09% of W.W. Grainger worth $47,967,000 at the end of the most recent reporting period.

Several other hedge funds have also added to or reduced their stakes in the business. Wellington Management Group LLP lifted its holdings in shares of W.W. Grainger by 1,462.1% during the fourth quarter. Wellington Management Group LLP now owns 1,071,854 shares of the industrial products company’s stock worth $1,081,554,000 after purchasing an additional 1,003,237 shares during the period. Norges Bank acquired a new stake in W.W. Grainger in the fourth quarter valued at $518,958,000. Northwestern Mutual Wealth Management Co. increased its holdings in W.W. Grainger by 34,269.9% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 435,466 shares of the industrial products company’s stock valued at $439,407,000 after purchasing an additional 434,199 shares during the period. Price T Rowe Associates Inc. MD raised its position in W.W. Grainger by 61.1% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,027,286 shares of the industrial products company’s stock worth $1,036,584,000 after purchasing an additional 389,589 shares during the last quarter. Finally, Sustainable Growth Advisers LP bought a new position in W.W. Grainger during the 3rd quarter worth $239,597,000. 80.70% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling In other W.W. Grainger news, VP Paige K. Robbins sold 1,457 shares of the firm’s stock in a transaction that occurred 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 completion of the sale, the vice president owned 2,232 shares of the company’s stock, valued at approximately $2,750,471.28. This trade represents a 39.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Laurie R. Thomson sold 313 shares of the business’s stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $1,231.69, for a total value of $385,518.97. Following the sale, the vice president owned 399 shares of the company’s stock, valued at approximately $491,444.31. This represents a 43.96% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 2,624 shares of company stock valued at $3,232,291. 6.30% of the stock is owned by company insiders.

W.W. Grainger Trading Up 1.1% NYSE:GWW opened at $1,397.48 on Tuesday. The company has a current ratio of 2.69, a quick ratio of 1.60 and a debt-to-equity ratio of 0.55. The stock has a market capitalization of $65.98 billion, a price-to-earnings ratio of 37.59, a PEG ratio of 2.55 and a beta of 1.03. The firm has a fifty day simple moving average of $1,326.02 and a two-hundred day simple moving average of $1,194.83. W.W. Grainger, Inc. has a 12 month low of $906.52 and a 12 month high of $1,419.91.

W.W. Grainger (NYSE:GWW – Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The industrial products company reported $11.65 earnings per share for the quarter, beating the consensus estimate of $10.21 by $1.44. The firm had revenue of $4.74 billion for the quarter, compared to analyst estimates of $4.58 billion. W.W. Grainger had a net margin of 9.70% and a return on equity of 47.87%. The business’s quarterly revenue was up 10.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $9.86 earnings per share. W.W. Grainger has set its FY 2026 guidance at 44.250-46.250 EPS. Analysts expect that W.W. Grainger, Inc. will post 45.46 EPS for the current fiscal year.

W.W. Grainger Increases Dividend The company also recently announced a quarterly dividend, which was paid on Monday, June 1st. Investors of record on Monday, May 11th were given a $2.49 dividend. This represents a $9.96 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend was Monday, May 11th. This is a positive change from W.W. Grainger’s previous quarterly dividend of $2.26. W.W. Grainger’s dividend payout ratio is presently 26.79%.

Analyst Upgrades and Downgrades Several research analysts have commented on GWW shares. Royal Bank Of Canada upped their price target on W.W. Grainger from $1,337.00 to $1,460.00 and gave the company a “sector perform” rating in a research report on Thursday, July 16th. Wall Street Zen raised W.W. Grainger from a “hold” rating to a “buy” rating in a research note on Saturday, May 23rd. Stephens downgraded W.W. Grainger from an “overweight” rating to an “equal weight” rating and set a $1,355.00 price objective for the company. in a research report on Tuesday, July 14th. Sanford C. Bernstein lifted their price objective on W.W. Grainger from $1,052.00 to $1,125.00 and gave the stock a “market perform” rating in a research note on Tuesday, April 21st. Finally, Wolfe Research upgraded W.W. Grainger from an “underperform” rating to a “peer perform” rating in a report on Thursday, July 9th. Two research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $1,230.11.

View Our Latest Analysis on W.W. Grainger

About W.W. Grainger (Free Report)

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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Stock to Watch: W.W. Grainger (GWW - Free Report) Incorporated in 1928, IL-based W.W. Grainger Inc. is a broad line, business-to-business distributor of maintenance, repair and operating (MRO) products and services. Its operations are primarily in North America, Japan and the U.K. Its customers represent a wide array of industries including government, manufacturing, transportation, commercial and contractors. Its products include material-handling equipment, safety and security supplies, lighting and electrical products, power and hand tools, pumps and plumbing supplies, cleaning and maintenance supplies, and metalworking tools.

GWW is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Industrial Products stock. GWW has a Momentum Style Score of B, and shares are up 3.9% over the past four weeks.

For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.78 to $45.47 per share. GWW boasts an average earnings surprise of +4.2%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, GWW should be on investors' short list.

W.W. Grainger (GWW) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock suggests that there could be more strength down the road.

, /PRNewswire/ -- Grainger (NYSE: GWW), a leading broad-line distributor of maintenance, repair and operating (MRO) products and services, today announced it is celebrating 25 years of partnership with the American Red Cross. Together, the organizations are advancing disaster preparedness and response across the United States, where the Red Cross responds to more than 60,000 disasters each year.

"For 25 years, Grainger has been proud to partner with the American Red Cross because keeping our communities safe and resilient is deeply connected to our purpose: We Keep The World Working®," said Melanie Tinto, Senior Vice President and Chief Human Resources Officer at Grainger. "Over the years, we've seen the impact this partnership has on individuals, families and communities when they need support most. We're grateful for all we've accomplished together and look forward to continuing to make a meaningful difference in the years ahead."

As a member of the Disaster Responder Program, Grainger contributes financial and in-kind donations in advance of disasters to help ensure the Red Cross has the infrastructure, volunteers, technology and resources needed to provide relief in times of crisis. Since 2001, the company has committed more than $21.6 million in cash and product donations, including more than 170,000 smoke alarms for the national Home Fire Campaign, along with significant employee volunteer support.

"Twenty-five years of partnership with Grainger is a testament to its steadfast commitment to the people and communities we serve," said Anne McKeough, Chief Development Officer at the American Red Cross. "As disasters intensify and increase in frequency, Grainger's partnership is essential. Year after year, through disasters large and small, Grainger has provided critical resources and unwavering support when families need us most. We're incredibly grateful for its dedication and look forward to many more years of working together."

Through its work with the Red Cross, Grainger has supported more than 40 national volunteer deployments through the Ready When the Time Comes® (RWTC) program, including efforts assisting communities impacted by hurricanes Katrina and Maria. Grainger team members have also mapped more than 90,000 buildings through the Missing Maps program, supporting humanitarian organizations serving vulnerable populations. Additional volunteer efforts include blood drives, comfort kit assembly and hands-only CPR training.

About Grainger

W.W. Grainger, Inc. is a leading broad-line distributor with operations primarily in North America and Japan. At Grainger, We Keep the World Working® by serving more than 4.6 million customers worldwide with maintenance, repair and operating (MRO) products and value-added solutions delivered through innovative technology and deep customer expertise. Known for its commitment to service and purpose-driven culture, the company reported 2025 revenue of $17.9 billion. For more information, visit www.grainger.com.

SOURCE W.W. Grainger, Inc.

Investors looking for stocks in the Industrial Services sector might want to consider either Global Industrial (GIC) or W.W. Grainger (GWW).

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- W.W. Grainger, Inc. (NYSE: GWW) held its annual meeting of shareholders virtually today. Chairman and CEO D.G. Macpherson provided a company update, which included 2025 financial and operational highlights.

Shareholders elected the following 12 directors:

Rodney C. Adkins

Neil S. Novich

George S. Davis

Beatriz R. Perez

Katherine D. Jaspon

E. Scott Santi

Christopher J. Klein

Susan Slavik Williams

D.G. Macpherson

Lucas E. Watson

Cindy J. Miller

Steven A. White

Additionally, the shareholders voted in favor of two proposals: (i) to ratify the appointment of Ernst & Young LLP as the company's independent auditor for the 2026 fiscal year, and (ii) to approve the advisory say-on-pay resolution on executive compensation.

About Grainger
W.W. Grainger, Inc., is a leading broad line distributor with operations primarily in North America and Japan. At Grainger, We Keep the World Working® by serving more than 4.6 million customers worldwide with maintenance, repair and operating (MRO) products and value-added solutions delivered through innovative technology and deep customer expertise. Known for its commitment to service and purpose-driven culture, the Company reported 2025 revenue of $17.9 billion.

For more information, visit www.grainger.com. 

SOURCE W.W. Grainger

Analysts on Wall Street project that W.W. Grainger (GWW - Free Report) will announce quarterly earnings of $10.20 per share in its forthcoming report, representing an increase of 3.5% year over year. Revenues are projected to reach $4.57 billion, increasing 6.1% from the same quarter last year.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

In light of this perspective, let's dive into the average estimates of certain W.W. Grainger metrics that are commonly tracked and forecasted by Wall Street analysts.

Analysts' assessment points toward 'Net Sales- Endless Assortment' reaching $945.46 million. The estimate indicates a year-over-year change of +14.2%.

The average prediction of analysts places 'Net Sales- High-Touch Solutions N.A.' at $3.63 billion. The estimate indicates a change of +6.8% from the prior-year quarter.

The consensus among analysts is that 'Operating earnings (losses)- Endless Assortment' will reach $83.34 million. The estimate compares to the year-ago value of $72.00 million.

It is projected by analysts that the 'Operating earnings (losses)- High-Touch Solutions N.A.' will reach $620.56 million. The estimate compares to the year-ago value of $600.00 million.

View all Key Company Metrics for W.W. Grainger here>>>

Over the past month, shares of W.W. Grainger have returned +2.8% versus the Zacks S&P 500 composite's +10% change. Currently, GWW carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Strong results across the business;
Company increases full year 2026 outlook

First Quarter Highlights

Delivered sales of $4.7 billion, up 10.1%, or 12.2% on a daily, organic constant currency basis Achieved operating margin of 16.7%, up 110 basis points Generated diluted EPS of $11.65, up 18.2% Produced $739 million in operating cash flow and returned $345 million to Grainger shareholders through dividends and share repurchases Announced quarterly dividend increase of 10% Increasing full year 2026 guidance, including diluted adjusted EPS range of $44.25 to $46.25 , /PRNewswire/ -- Grainger (NYSE: GWW) today reported results for the first quarter of 2026 with sales of $4.7 billion, up 10.1%, or 12.2% on a daily, organic constant currency basis, and diluted EPS of $11.65, up 18.2% compared to the first quarter of 2025. 

"We delivered great results in the first quarter driven by strong execution across both segments," said D.G. Macpherson, Chairman and CEO. "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."

2026 First Quarter Financial Summary

($ in millions, except per share amounts)

Q1 2026(1)

Q1 2025(1)

Q1'26 vs. Q1'25

Fav. / (Unfav.)

Net Sales

$4,742

$4,306

10.1 %

Gross Profit

$1,896

$1,710

10.9 %

Operating Earnings

$793

$672

18.0 %

Net Earnings Attributable to W.W.
Grainger, Inc.

$555

$479

15.9 %

Diluted Earnings Per Share

$11.65

$9.86

18.2 %

Gross Profit Margin

40.0 %

39.7 %

30 bps

Operating Margin

16.7 %

15.6 %

110 bps

Effective Tax Rate

25.1 %

23.9 %

(120) bps

(1) Results are consistent on a reported and adjusted basis.

Revenue
Sales in the quarter increased 10.1% compared to the first quarter of 2025. When normalizing for the Company's exit from the U.K. market and the impact of foreign currency exchange, sales on a daily, organic constant currency basis increased 12.2% compared to the first quarter of 2025.

In the High-Touch Solutions - N.A. segment, sales were up 10.5%, or 10.0% on daily, constant currency basis compared to the first quarter of 2025. Results for the segment were driven by volume growth and price inflation as tariff costs are passed. In the Endless Assortment segment, sales were up 19.6%, or 21.9% on a daily, organic constant currency basis, compared to the first quarter of 2025. Growth for the segment was driven by strong performance at both MonotaRO and Zoro.

Gross Profit Margin
Gross profit margin was 40.0% in the first quarter of 2026, up 30 basis points compared to the first quarter of 2025 as strength from both segments and a benefit related to the Company's exit from the U.K. market drove results.

In the High-Touch Solutions - N.A. segment, gross profit margin was 42.6%, up 20 basis points compared to the prior year quarter largely due to favorable product mix and freight. In the Endless Assortment segment, gross profit margin increased by 40 basis points from the first quarter of 2025 due primarily to margin improvement at Zoro.

Earnings
For the first quarter of 2026, total Company operating earnings were $793 million, up 18.0% compared to the first quarter of 2025. Operating margin was 16.7%, a 110 basis point increase compared to the first quarter of 2025. This increase in operating margin was driven by gross margin and sales leverage improvement in both segments and a benefit related to the Company's exit from the U.K. market.

Diluted earnings per share for the first quarter of 2026 were $11.65, up 18.2% compared to the first quarter of 2025. The increase was due primarily to strong operating performance and fewer shares outstanding, partly offset by a higher effective tax rate.

Tax Rate
For the first quarter of 2026, the effective tax rate was 25.1%, compared to 23.9% in the first quarter of 2025. The increase in the effective tax rate was primarily due to decreased tax credit activity in the current year period and the impact of tax legislation effective in 2026.

Cash Flow
During the first quarter of 2026, the Company generated $739 million of cash flow from operating activities as net earnings were aided by favorable working capital. The Company invested $170 million in capital expenditures, resulting in free cash flow of $569 million. During the quarter, the Company returned $345 million to Grainger shareholders through dividends and share repurchases.

Guidance
The Company is updating the following guidance ranges for 2026:

Total Company(1)

Previous 2026 Guidance Range

(as of February 3, 2026)

Updated 2026 Guidance Range

(as of May 7, 2026)

Net Sales

$18.7 - $19.1 billion

$19.2 - $19.6 billion

Sales growth

4.2% - 6.7%

6.7% - 9.1%

Daily, organic constant currency sales growth

6.5% - 9.0%

9.5% - 12.0%

Gross Profit Margin

39.2% - 39.5%

39.2% - 39.5%

Operating Margin

15.4% - 15.9%

15.6% - 16.0%

Diluted Earnings per Share

$42.25 - $44.75

$44.25 - $46.25

Operating Cash Flow

$2.125 - $2.325 billion

$2.2 - $2.4 billion

CapEx (cash basis)

$0.55 - $0.65 billion

$0.55 - $0.65 billion

Share Buyback

$0.95 - $1.05 billion

$0.95 - $1.05 billion

Effective Tax Rate

~25.0%

~25.0%

Segment Operating Margin

High-Touch Solutions - N.A.

16.9% - 17.4%

17.0% - 17.4%

Endless Assortment

10.0% - 10.5%

10.2% - 10.6%

 (1) Guidance provided is on an adjusted basis. Daily, organic constant currency sales growth is adjusted for the impact of certain divested or closed businesses in the comparable prior year period post date of divestiture or closure and changes in foreign currency exchange. The Company does not reconcile forward-looking non-GAAP financial measures. For further details see the supplemental information of this release.

Webcast
The Company will conduct a live conference call and webcast at 11:00 a.m. ET on Thursday, May 7, 2026, to discuss the first quarter results. The event will be hosted by D.G. Macpherson, Chairman and CEO, and Deidra Merriwether, Senior Vice President and CFO, and can be accessed at invest.grainger.com. To access the conference call via phone, please send a request to [email protected]. For those unable to participate in the live event, a webcast replay will be available for 90 days at invest.grainger.com.

About Grainger
W.W. Grainger, Inc., is a leading broad line distributor with operations primarily in North America and Japan. At Grainger, We Keep the World Working® by serving more than 4.6 million customers worldwide with maintenance, repair and operating (MRO) products and value-added solutions delivered through innovative technology and deep customer expertise. Known for its commitment to service and purpose-driven culture, the Company reported 2025 revenue of $17.9 billion. For more information, visit www.grainger.com.

Visit invest.grainger.com to view information about the Company, including a supplement regarding 2026 first quarter results and additional Company information.

Safe Harbor Statement

All statements in this communication, other than those relating to historical facts, are "forward-looking statements" under the federal securities laws. Forward-looking statements can generally be identified by their use of terms such as "anticipate," "estimate," "believe," "expect," "could," "forecast," "may," "intend," "plan," "predict," "project," "will," or "would," and similar terms and phrases, including references to assumptions. Grainger cannot guarantee that any forward-looking statement will be realized and achievement of future results is subject to risks and uncertainties, many of which are beyond Grainger's control, which could cause Grainger's results to differ materially from those that are presented. Forward-looking statements include, but are not limited to, statements about future strategic plans and future financial and operating results. Important factors that could cause actual results to differ materially from those presented or implied in the forward-looking statements include, without limitation: inflation, higher product costs or other expenses, including operational and administrative expenses; a major loss of customers; loss or disruption of sources of supply; changes in customer or product mix; increased competitive pricing pressures; changes in third-party practices regarding digital advertising; failure to enter into or sustain contractual arrangements on a satisfactory basis with group purchasing organizations; failure to develop, manage or implement new technology initiatives or business strategies including with respect to Grainger's eCommerce platforms and artificial intelligence; failure to adequately protect intellectual property or successfully defend against infringement claims; fluctuations or declines in Grainger's gross profit margin; Grainger's responses to market pressures; the outcome of pending and future litigation or governmental or regulatory proceedings, including with respect to wage and hour, anti-bribery and corruption, environmental, regulations related to advertising, marketing and the internet, consumer protection, pricing (including disaster or emergency declaration pricing statutes), product liability, compliance or safety, trade and export compliance, general commercial disputes, or privacy and cybersecurity matters; investigations, inquiries, audits and changes in laws and regulations; failure to comply with laws, regulations and standards, including new or stricter environmental laws or regulations; government contract matters, including new or revised provisions relating to contract compliance or performance; the impact of any government shutdown; disruption or breaches of information technology or data security systems involving Grainger or third parties on which Grainger depends; general industry, economic, market or political conditions; general global economic conditions, including existing, new, or increased tariffs, trade issues and changes in trade policies, inflation, and interest rates; currency exchange rate fluctuations; market volatility, including price and trading volume volatility or price declines of Grainger's common stock; an incident that adversely impacts Grainger's reputation or brand; commodity price volatility; facilities disruptions or shutdowns; higher fuel costs or disruptions in transportation services; effects of outbreaks of pandemic disease or viral contagions, global conflicts, natural or human induced disasters, extreme weather, and other catastrophes or conditions; effects of climate change; failure to execute on our corporate responsibility efforts; competition for, or failure to attract, retain, train, motivate and develop executives and key team members; loss of key members of management or key team members; loss of operational flexibility and potential for work stoppages or slowdowns if team members unionize or join a collective bargaining arrangement; changes in effective tax rates; changes in credit ratings or outlook; Grainger's incurrence of indebtedness or failure to comply with restrictions and obligations under its debt agreements and instruments and other factors that can be found in our filings with the Securities and Exchange Commission, including our most recent periodic reports filed on Form 10-K and Form 10-Q, which are available on our Investor Relations website. Forward-looking statements are given only as of the date of this communication and we disclaim any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

W.W. Grainger, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In millions of dollars, except for share and per share amounts)
(Unaudited)

Three Months Ended March 31,

2026

2025

Net sales

$            4,742

$            4,306

Cost of goods sold

2,846

2,596

Gross profit

1,896

1,710

Selling, general and administrative expenses

1,103

1,038

Operating earnings

793

672

Other (income) expense:

Interest expense – net

21

21

Other – net

(3)

(6)

Total other expense – net

18

15

Earnings before income taxes

775

657

Income tax provision

194

157

Net earnings

581

500

Less net earnings attributable to noncontrolling interest

26

21

Net earnings attributable to W.W. Grainger, Inc.

$               555

$               479

Earnings per share:

Basic

$            11.67

$              9.88

Diluted

$            11.65

$              9.86

Weighted average number of shares outstanding:

Basic

47.3

48.2

Diluted

47.4

48.3

W.W. Grainger, Inc. and Subsidiaries 
CONDENSED CONSOLIDATED BALANCE SHEETS 
(In millions of dollars)
(Unaudited)

As of

(Unaudited)

Assets

March 31, 2026

December 31, 2025

Current assets

Cash and cash equivalents

$                            695

$                            585

Accounts receivable (less allowance for credit
losses of $32 and $32)

2,627

2,329

Inventories – net

2,385

2,394

Prepaid expenses and other current assets

200

176

Total current assets

5,907

5,484

Property, buildings and equipment – net

2,359

2,268

Goodwill

358

360

Intangibles – net

268

265

Operating lease right-of-use

342

345

Other assets

239

240

Total assets

$                          9,473

$                          8,962

Liabilities and Shareholders' Equity

Current liabilities

Current maturities

$                               2

$                            126

Trade accounts payable

1,220

963

Accrued compensation and benefits

285

343

Operating lease liability

71

73

Accrued expenses

423

386

Income taxes payable

198

49

Total current liabilities

2,199

1,940

Long-term debt

2,409

2,362

Long-term operating lease liability

299

301

Deferred income taxes and tax uncertainties

128

121

Other non-current liabilities

95

97

Shareholders' equity

4,343

4,141

Total liabilities and shareholders' equity

$                          9,473

$                          8,962

W.W. Grainger, Inc. and Subsidiaries 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions of dollars)
(Unaudited)

Three Months Ended March 31,

2026

2025

Cash flows from operating activities:

Net earnings

$                  581

$                  500

Adjustments to reconcile net earnings to net cash provided by
operating activities:

Provision for credit losses

6

7

Deferred income taxes and tax uncertainties

8

(4)

Depreciation and amortization

62

61

Non-cash lease expense

20

20

Stock-based compensation

14

12

Change in operating assets and liabilities:

Accounts receivable

(303)

(128)

Inventories

5

6

Prepaid expenses and other assets

(50)

(19)

Trade accounts payable

253

154

Operating lease liabilities

(24)

(25)

Accrued liabilities

(5)

(42)

Income taxes – net

173

106

Other non-current liabilities

(1)

(2)

Net cash provided by operating activities

739

646

Cash flows from investing activities:

Capital expenditures

(170)

(125)

Other – net

(8)

—

Net cash used in investing activities

(178)

(125)

Cash flows from financing activities:

Short-term borrowings (repayments), original maturities of 90 days
or less, net

(125)

—

Proceeds from debt

50

1

Payments of debt

(1)

(502)

Proceeds from stock options exercised

6

2

Payments for employee taxes withheld from stock awards

(5)

(3)

Purchases of treasury stock

(237)

(281)

Purchases of noncontrolling interests

(25)

—

Cash dividends paid

(108)

(115)

Other – net

(1)

—

Net cash used in financing activities

(446)

(898)

Exchange rate effect on cash and cash equivalents

(5)

7

Net change in cash and cash equivalents

110

(370)

Cash and cash equivalents at beginning of period

585

1,036

Cash and cash equivalents at end of period

$                  695

$                  666

SUPPLEMENTAL INFORMATION - RECONCILIATION OF GAAP TO NON-GAAP 
FINANCIAL MEASURES (Unaudited)

The Company supplements the reporting of financial information determined under U.S. generally accepted accounting principles (GAAP) with the non-GAAP financial measures as defined below. The Company believes these non-GAAP financial measures provide meaningful information to assist investors in understanding financial results and assessing future performance as they provide a better baseline for analyzing the ongoing performance of its business by excluding items that may not be indicative of core operating results.

Basis of presentation
The Company has a controlling ownership interest in MonotaRO, which is part of the Endless Assortment segment. MonotaRO's results are fully consolidated, reflected in U.S. GAAP, and reported one-month in arrears. Results will differ from MonotaRO's externally reported financials which follow Japanese GAAP.

Adjusted gross profit, adjusted SG&A, adjusted operating earnings, adjusted operating margin, adjusted net earnings, adjusted diluted EPS
Exclude certain non-recurring items, like restructuring charges, asset impairments, gains and losses associated with business divestitures or closures and other non-recurring, infrequent or unusual gains and losses (together referred to as "non-GAAP adjustments"), from the Company's most directly comparable reported U.S. GAAP figures (reported gross profit, SG&A, operating earnings, net earnings and EPS). The Company believes these non-GAAP adjustments provide meaningful information to assist investors in understanding financial results and assessing future performance as they provide a better baseline for analyzing the ongoing performance of its business by excluding items that may not be indicative of core operating results.

Free cash flow (FCF)
Calculated using total cash provided by operating activities less capital expenditures. The Company believes the presentation of FCF allows investors to evaluate the capacity of the Company's operations to generate free cash flow.

Daily sales
Refers to sales for the period divided by the number of U.S. selling days for the period.

Daily, constant currency sales
Refers to daily sales adjusted for changes in foreign currency exchange rates.

Daily, organic constant currency sales
Refers to daily sales excluding the sales of certain divested or closed businesses in the comparable prior year period post date of divestiture or closure and changes in foreign currency exchange rates.

Foreign currency exchange
Calculated by dividing current period local currency daily sales by current period average exchange rate and subtracting the current period local currency daily sales divided by the prior period average exchange rate.

U.S. selling days:
2025: Q1-63, Q2-64, Q3-64, Q4-64, FY-255
2026: Q1-63, Q2-64, Q3-64, Q4-64, FY-255
2027: Q1-63, Q2-64, Q3-64, Q4-63, FY-254

As non-GAAP financial measures are not standardized, it may not be possible to compare these measures with other companies' non-GAAP measures having the same or similar names. These non-GAAP measures should not be considered in isolation or as a substitute for reported results. These non-GAAP measures reflect an additional way of viewing aspects of operations that, when viewed with GAAP results, provide a more complete understanding of the business. This press release also includes certain non-GAAP forward-looking information. The Company believes that a quantitative reconciliation of such forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of these non-GAAP financial measures would require the Company to predict the timing and likelihood of future restructurings, asset impairments, and other charges. Neither of these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of the most directly comparable forward-looking GAAP measures is not provided.

The reconciliations provided below reconcile GAAP financial measures to non-GAAP financial measures used in this release: daily sales; daily, organic constant currency sales; and free cash flow.

Sales growth for the three months ended March 31, 2026
(percent change compared to prior year period) 
(unaudited)

Q1 2026

Total Company

High-Touch Solutions - N.A.

Endless Assortment

Reported sales

10.1 %

10.5 %

19.6 %

Daily impact

— %

— %

— %

Daily sales(1)

10.1 %

10.5 %

19.6 %

Foreign currency exchange(2)

(0.2) %

(0.5) %

0.9 %

Business divestiture(3)

2.3 %

— %

1.4 %

Daily, organic constant currency sales

12.2 %

10.0 %

21.9 %

(1) Based on U.S. selling days, there were 63 selling days in Q1 2026 and Q1 2025

(2) Excludes the impact of year-over-year foreign currency exchange rate fluctuations

(3) Excludes the net sales results of the divested Cromwell business and closed Zoro U.K. business, announced in the third quarter of 2025 and
     completed in the fourth quarter of 2025, in the prior year period on a daily basis

Free cash flow (FCF) for the three months ended March 31, 2026
(in millions of dollars) 
(unaudited)

Q1 2026

Net cash flows provided by operating activities

$                                           739

Capital expenditures

(170)

Free cash flow

$                                           569

SOURCE W.W. Grainger, Inc.

W.W. Grainger (GWW - Free Report) came out with quarterly earnings of $11.65 per share, beating the Zacks Consensus Estimate of $10.2 per share. This compares to earnings of $9.86 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +14.23%. A quarter ago, it was expected that this seller of maintenance and other supplies would post earnings of $9.43 per share when it actually produced earnings of $9.44, delivering a surprise of +0.11%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

W.W. Grainger, which belongs to the Zacks Industrial Services industry, posted revenues of $4.74 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.80%. This compares to year-ago revenues of $4.31 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

W.W. Grainger shares have added about 15.9% since the beginning of the year versus the S&P 500's gain of 7.6%.

What's Next for W.W. Grainger?While W.W. Grainger has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for W.W. Grainger was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $10.96 on $4.78 billion in revenues for the coming quarter and $43.61 on $18.95 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Industrial Services is currently in the top 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Eos Energy Enterprises, Inc. (EOSE - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 13.

This company is expected to post quarterly loss of $0.28 per share in its upcoming report, which represents a year-over-year change of -40%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Eos Energy Enterprises, Inc.'s revenues are expected to be $56.44 million, up 439.6% from the year-ago quarter.

W.W. Grainger (GWW - Free Report) reported $4.74 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 10.1%. EPS of $11.65 for the same period compares to $9.86 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $4.57 billion, representing a surprise of +3.8%. The company delivered an EPS surprise of +14.23%, with the consensus EPS estimate being $10.20.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how W.W. Grainger performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Total Reported Growth: 10.1% versus 6.1% estimated by six analysts on average.Net Sales- Endless Assortment: $990 million compared to the $945.46 million average estimate based on six analysts. The reported number represents a change of +19.6% year over year.Net Sales- High-Touch Solutions N.A.: $3.75 billion compared to the $3.63 billion average estimate based on six analysts. The reported number represents a change of +10.5% year over year.Operating earnings (losses)- Endless Assortment: $105 million compared to the $83.34 million average estimate based on five analysts.Operating earnings (losses)- High-Touch Solutions N.A.: $688 million versus the five-analyst average estimate of $620.56 million.View all Key Company Metrics for W.W. Grainger here>>>

Shares of W.W. Grainger have returned +5.3% over the past month versus the Zacks S&P 500 composite's +11% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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Stock to Watch: W.W. Grainger (GWW - Free Report) Incorporated in 1928, IL-based W.W. Grainger Inc. is a broad line, business-to-business distributor of maintenance, repair and operating (MRO) products and services. Its operations are primarily in North America, Japan and the U.K. Its customers represent a wide array of industries including government, manufacturing, transportation, commercial and contractors. Its products include material-handling equipment, safety and security supplies, lighting and electrical products, power and hand tools, pumps and plumbing supplies, cleaning and maintenance supplies, and metalworking tools.

GWW is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Industrial Products stock. GWW has a Momentum Style Score of B, and shares are up 6.3% over the past four weeks.

For fiscal 2026, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.36 to $44.98 per share. GWW boasts an average earnings surprise of +4.2%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, GWW should be on investors' short list.

On June 03, 2026, we present a detailed DCF analysis for W.W. Grainger Inc GWW . The stock has shown notable price performance, with a year-to-date increase of 26.2% and a 1-year increase of 19.1%. Here are some key points to consider:

DCF Earnings-based intrinsic value of $940.91 vs current price of $1268.36 (margin of safety: -34.8%) DCF FCF-based intrinsic value of $511.59 vs current price (second opinion shows significant overvaluation) GF Score™ of 93/100 indicates high reliability of the DCF inputs What Is GWW Worth? DCF Earnings-Based Model The DCF earnings-based model for W.W. Grainger Inc GWW utilizes a two-stage approach to estimate the intrinsic value of the stock. In the first stage, we project earnings growth over the next 10 years. In the second stage, we apply a terminal growth rate for the following 10 years. Below are the assumptions used in this model:

Parameter Value Current EPS (TTM, excl. non-recurring) $41.27 10-Year Growth Rate 15.3% 10-Year Treasury Rate 4.48% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the growth phase (Years 1-10), we expect EPS to grow at 15.3% per year, which is then discounted at a rate of 11%. The value derived from this stage is $511.69 per share. In the terminal phase (Years 11-20), the growth rate slows to a terminal rate of 4%, also discounted at 11%, yielding a value of $429.22 per share. The summary of these calculations is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 15.3%, discounted at 11% $511.69 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $429.22 Intrinsic Value Growth + Terminal $940.91 Comparing the current price of $1268.36 with the intrinsic value of $940.91 indicates that the stock is modestly overvalued, with a margin of safety of -34.8%. It is important to note that GuruFocus uses EPS without non-recurring items, as research shows stock prices correlate more closely with earnings than with free cash flow. For a detailed calculation, visit the GWW DCF Calculator.

What Does the Free Cash Flow DCF Say? The free cash flow (FCF) based intrinsic value for W.W. Grainger Inc GWW is calculated at $511.59. When comparing this with the earnings-based intrinsic value of $940.91, we see a significant discrepancy. The FCF model suggests that the stock is significantly overvalued, with a margin of safety of -147.9%. This divergence between the two models highlights the importance of considering multiple valuation perspectives.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for W.W. Grainger Inc GWW is calculated at $1107.49, providing a third perspective on valuation. GF Value™ is GuruFocus' proprietary measure, derived from historical trading multiples, past business growth, and future performance estimates. When we analyze all three models (DCF earnings, DCF FCF, and GF Value™), we find that they generally agree on the overvaluation of the stock. For more information, visit the GF Value™ page.

What Does GWW's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021). Below is the GF Score™ breakdown for W.W. Grainger Inc GWW :

Metric Rating GF Score™ 93/100 Financial Strength 8/10 Profitability 9/10 Growth 9/10 Valuation 6/10 Momentum 8/10 With a predictability rank of 0/5 stars, it indicates that the DCF model may be less reliable for this stock. For more details, visit the GWW stock page.

Key Assumptions and Limitations It is essential to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Additionally, stocks with low predictability ratings, such as GWW's 0/5 stars, tend to produce less reliable DCF estimates. The terminal growth rate of 4% used in this analysis is a simplifying assumption that may not reflect future economic conditions.

What This Means for Investors In summary, the three valuation models (DCF earnings, DCF FCF, and GF Value™) indicate that W.W. Grainger Inc GWW is currently overvalued. The earnings-based intrinsic value of $940.91 and the FCF-based intrinsic value of $511.59 both suggest a significant margin of safety, while the GF Value™ of $1107.49 corroborates this assessment.

For the full DCF analysis, visit the GWW DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is GWW's intrinsic value based on DCF?

[Answer: earnings-based $940.91, FCF-based $511.59]

Is GWW overvalued or undervalued?

[Answer using DCF + GF Value™ consensus]

How reliable is the DCF model for GWW?

[Answer using predictability rank 0/5]

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].