W.W. Grainger Reports Strong Q3 2026 Earnings & Raises Full-Year Guidance
W.W. GRAINGER, INC.
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Filing Summary
W.W. Grainger, Inc. (NYSE: GWW) - Q3 2026 Earnings Release
Key Highlights: • Net Sales: $5.18B (+11.3% YoY, +14.9% organic constant currency) • Reported EPS: $12.42 (+102.9% YoY) | Adjusted EPS: $12.54 (+22.8% YoY) • Operating Margin: 16.0% (Adjusted: 16.1%, up 90 bps YoY) • Operating Cash Flow: $661M; Free Cash Flow: $546M • Shareholder Returns: $396M returned via dividends and repurchases • FY 2026 Guidance: Raised adjusted diluted EPS to $47.00–$48.00 (from $45.50–$47.25); net sales updated to $19.8B–$20.0B.
Comprehensive Analysis
Executive Summary
On November 4, 2026, W.W. Grainger, Inc. (NYSE: GWW) filed a Current Report on Form 8-K under Item 2.02 disclosing its financial results for the third quarter ended September 30, 2026. Grainger delivered double-digit revenue growth and expanded operating margins, outperforming prior-year metrics across both core operating segments and lifting full-year 2026 revenue, margin, and earnings guidance.
Third Quarter 2026 Financial Highlights
- Net Sales: $5,181 million, up 11.3% compared to $4,657 million in Q3 2025. On a daily, organic constant currency basis, net sales rose 14.9%.
- Gross Profit Margin: 38.8%, up 20 basis points YoY from 38.6%, supported by margin gains in Endless Assortment and benefits related to the prior-year exit of the U.K. market.
- Operating Earnings:
- Reported: $828 million (16.0% operating margin), up 62.0% YoY.
- Adjusted: $836 million (16.1% operating margin), up 18.2% YoY, excluding transaction costs related to the acquisition of technology assets from Adroit Worldwide Media, Inc.
- Net Earnings Attributable to Grainger:
- Reported: $587 million ($12.42 per diluted share), up 102.9% from $6.12 in Q3 2025 (which was impacted by the U.K. market exit charges).
- Adjusted: $593 million ($12.54 per diluted share), up 22.8% compared to $10.21 in Q3 2025.
- Cash Flow & Capital Deployment:
- Operating cash flow was $661 million.
- Capital expenditures totaled $115 million, generating free cash flow of $546 million.
- Returned $396 million to shareholders via dividends and share buybacks.
Segment Performance
- High-Touch Solutions – N.A.: Sales increased 13.8% on both reported and daily constant currency bases, fueled by double-digit volume growth and passed-through cost inflation. Segment gross margin declined 30 basis points to 40.8% due to higher freight expense and product mix.
- Endless Assortment: Sales increased 11.9% reported (19.3% daily, organic constant currency), driven by strong demand across MonotaRO and Zoro. Gross margin improved 90 basis points YoY.
Updated Full-Year 2026 Guidance
Reflecting year-to-date execution and an improving demand backdrop, Grainger raised several full-year 2026 targets:
| Metric | Prior Guidance (Aug 4, 2026) | Updated Guidance (Nov 4, 2026) |
|---|---|---|
| Net Sales | $19.4B – $19.7B | $19.8B – $20.0B |
| Sales Growth | 8.4% – 10.0% | 10.1% – 11.6% |
| Organic CC Sales Growth | 11.5% – 13.0% | 13.0% – 14.5% |
| Operating Margin | 15.8% – 16.2% | 16.0% – 16.2% |
| Diluted EPS (Adjusted) | $45.50 – $47.25 | $47.00 – $48.00 |
| Operating Cash Flow | $2.25B – $2.40B | $2.35B – $2.45B |
| Share Buybacks | $0.975B – $1.05B | $0.975B – $1.025B |
| Effective Tax Rate | ~25.0% | ~24.7% |
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Important Disclaimer
This content is drawn from public SEC filings and may contain errors. It is for informational purposes only and is not investment, legal, or tax advice.
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