W.W. Grainger (NYSE:GWW) Announces Earnings Results, Beats Estimates By $0.86 EPS

Key Points

• W.W. Grainger reported quarterly EPS of $12.54, beating estimates by $0.86, while revenue of $5.18 billion exceeded forecasts and rose 11.3% year over year.
• The company raised its 2026 outlook, projecting sales growth of 13%–14.5% and adjusted EPS of $47–$48; adjusted operating margin reached 16.1%.
• Sales growth was strong across both High-Touch Solutions and Endless Assortment, while freight and product-cost inflation remain pressures and could prompt additional pricing actions.

W.W. Grainger (NYSE:GWW - Get Free Report) announced its earnings results on Wednesday. The industrial products company reported $12.54 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $11.68 by $0.86, FiscalAI reports. The business had revenue of $5.18 billion for the quarter, compared to analyst estimates of $5.08 billion. W.W. Grainger had a net margin of 9.92% and a return on equity of 48.73%. W.W. Grainger's revenue was up 11.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $10.21 earnings per share.

Here are the key takeaways from W.W. Grainger's conference call:

• Grainger reported 14.9% daily organic constant-currency sales growth, 16.1% operating margin and adjusted diluted EPS of $12.54, up more than 22% year over year. The company raised its 2026 outlook to 13%–14.5% sales growth and adjusted EPS of $47–$48.
• High-Touch Solutions grew 13.8%, with double-digit volume growth and gains across all major end markets; management cited continued MRO improvement, data-center-related demand and strong contract execution. Project-related revenue remained a tailwind, though it had about a 10-basis-point drag on segment margin.
• Endless Assortment’s daily organic constant-currency sales rose 19.3%; Zoro U.S. grew 25.2%, driven largely by existing customers buying more. Segment operating margin expanded 190 basis points to 11.7%, which management attributed to stronger customer retention, more effective acquisition and pricing, and sales leverage.
• Freight and product-cost inflation remain pressures, with freight a roughly 20-basis-point drag in Q3; management is considering further pricing actions for early 2027 while aiming to maintain price-cost neutrality. Q4 operating margin is expected to be about 15.5% at the midpoint, reflecting seasonal SG&A deleverage, elevated incentive compensation and technology-acquisition costs, partly offset by supplier rebates.

W.W. Grainger Price Performance

Shares of W.W. Grainger stock traded up $91.56 during midday trading on Wednesday, hitting $1,489.54. 596,761 shares of the company were exchanged, compared to its average volume of 239,964. The firm has a 50 day simple moving average of $1,307.27 and a 200-day simple moving average of $1,241.15. The company has a debt-to-equity ratio of 0.53, a current ratio of 2.81 and a quick ratio of 1.70. The firm has a market cap of $70.16 billion, a P/E ratio of 37.98, a PEG ratio of 2.48 and a beta of 0.95. W.W. Grainger has a 52 week low of $906.52 and a 52 week high of $1,521.41.

W.W. Grainger Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Monday, November 9th will be given a dividend of $2.49 per share. This represents a $9.96 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Monday, November 9th. W.W. Grainger's dividend payout ratio (DPR) is 25.40%.

W.W. Grainger News Roundup

Here are the key news stories impacting W.W. Grainger this week:

• Positive Sentiment: Adjusted diluted EPS was $12.54, above the roughly $11.68 consensus and up 22.8% year over year. Revenue reached $5.2 billion, topping estimates of about $5.08 billion and rising 11.3% year over year; daily organic constant-currency sales grew 14.9%. Grainger reports third-quarter 2026 results
• Positive Sentiment: Grainger raised its full-year 2026 adjusted diluted EPS outlook to $47–$48, a favorable signal about management’s expectations for continued performance. W.W. Grainger posts higher earnings in Q3, lifts FY26 outlook
• Positive Sentiment: Adjusted operating margin expanded 90 basis points to 16.1%. The company also generated $661 million in operating cash flow and returned $396 million to shareholders through dividends and buybacks. Grainger reports third-quarter 2026 results
• Neutral Sentiment: The strong results and outlook have helped lift expectations, but the rally may leave less room for disappointment. One analysis highlights valuation as a higher hurdle for future gains. Grainger earnings rally raises the valuation hurdle

Analyst Ratings Changes

Several analysts have issued reports on the stock. Weiss Ratings restated a "buy (b)" rating on shares of W.W. Grainger in a research report on Thursday, October 15th. Jefferies Financial Group upped their price objective on shares of W.W. Grainger from $1,150.00 to $1,300.00 and gave the company a "hold" rating in a research report on Monday, July 20th. Wall Street Zen upgraded shares of W.W. Grainger from a "hold" rating to a "buy" rating in a research note on Saturday, October 10th. Robert W. Baird increased their target price on shares of W.W. Grainger from $1,365.00 to $1,400.00 and gave the company an "outperform" rating in a research note on Wednesday, August 5th. Finally, Wolfe Research started coverage on W.W. Grainger in a research report on Tuesday, September 15th. They set a "peer perform" rating on the stock. Three equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $1,266.08.

W.W. Grainger Company Profile

W.W. Grainger, Inc is a distributor of maintenance, repair and operating (MRO) supplies for businesses, government agencies and other organizations. Its product offerings include safety equipment, tools, fasteners, electrical and plumbing supplies, material-handling equipment, cleaning and janitorial products, HVAC supplies, and facility-maintenance products.

The company also provides services designed to help customers manage procurement and workplace operations, including product selection support, inventory-management programs, digital purchasing tools, and technical assistance.

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