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Grainger Earnings Miss Estimates in Q2, Revenues Increase Y/Y

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Key Takeaways

  • GWW reported Q2 EPS of $9.97, missing estimates but rising 2% y/y.
  • Q2 revenues rose 5.6% to $4.55B, topping estimates on strong daily sales and segment growth.
  • Endless Assortment daily sales grew 19.7%, beating growth estimate of 11%.

W.W. Grainger, Inc. (GWW - Free Report) has reported earnings per share (EPS) of $9.97 in second-quarter 2025, missing the Zacks Consensus Estimate of $10.00. However, the bottom line improved 2% year over year.

Grainger’s quarterly revenues rose 5.6% year over year to $4.55 billion. The top line beat the Zacks Consensus Estimate of $4.52 billion. Daily sales increased 5.6% from the prior-year quarter. We predicted daily sales to increase 3.8% in the quarter.

W.W. Grainger, Inc. Price, Consensus and EPS Surprise

 

W.W. Grainger, Inc. Price, Consensus and EPS Surprise

W.W. Grainger, Inc. price-consensus-eps-surprise-chart | W.W. Grainger, Inc. Quote

Grainger’s Q2 Segmental Performance

The High-Touch Solutions N.A. segment’s daily sales moved up 2.5% in the quarter from the second quarter of 2025, backed by growth across all geographies. Our model predicted year-over-year daily sales growth of 2.2% for the quarter.

The Endless Assortment segment’s daily sales grew 19.7% in the quarter due to solid performance at both MonotaRO and Zoro. The reported figure beat our estimated growth of 11%.

GWW’s Q2 Margins Dip Y/Y

Cost of sales rose 6.9% year over year to $2.8 billion. The gross profit rose 3.6% year over year to $1.75 billion. The gross margin came in at 38.5% compared with 39.3% in the prior-year quarter.

The company’s operating income in the quarter was up 4.5% year over year to $678 million. The operating margin was 14.9% compared with 15.1% in the prior-year quarter.

Grainger’s Q2 Cash Flow & Balance Sheet Updates

GWW had cash and cash equivalents of $0.6 billion at the end of the second quarter of 2025, down from $1 billion at the 2024 end. The cash flow from operating activities was $377 million in the second quarter of 2025 compared with $411 million in the prior-year quarter.

Long-term debt was $2.34 billion as of June 30, 2025, compared with $2.28 billion as of Dec. 31, 2025. Grainger returned $336 million to shareholders through dividends and share buybacks in the reported quarter.

GWW Updates 2025 Outlook

GWW expects net sales between $17.9 billion and $18.2 billion, updated from the prior stated $17.6-$18.1 million. Sales growth is anticipated to be 4.4-5.9%. Daily sales growth is envisioned at 4.5-6% compared with the earlier mentioned 4-6.5%. EPS is expected to be $38.50-$40.25 compared with the prior stated $39.00-$41.50.

Grainger Stock’s Price Performance

In the past year, the company’s shares have gained 11.2% compared with the industry’s growth of 16.6%.

 

Zacks Investment Research Image Source: Zacks Investment Research

 

GWW’s Zacks Rank

Grainger currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Performance

MSC Industrial Direct Company, Inc. (MSM - Free Report) reported a third-quarter fiscal 2025 (ended on May 31, 2025) adjusted EPS of $1.08, which beat the Zacks Consensus Estimate of $1.03. The bottom line decreased 18.8% year over year.

MSC Industrial generated revenues of around $971 million in the quarter under review, down 0.8% from $979 million in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $970 million. Average daily sales fell 0.8% year over year in the quarter. However, this came in line with the company’s expectations, driven by improving performance in volumes.

SiteOne Landscape Supply, Inc. (SITE - Free Report) reported an adjusted EPS of $2.86 in the second quarter of 2025, missing the Zacks Consensus Estimate of $2.89. The company posted earnings of $2.63 per share in the second quarter of 2024.

SITE registered revenues of $1.46 billion for the June-end quarter of 2025, in line with the Zacks Consensus Estimate. The top line rose 3.4% year over year.

Industrial Services Stock Awaiting Results

Hillenbrand, Inc. (HI - Free Report) is set to release third-quarter fiscal 2025 results on Aug. 11.

The Zacks Consensus Estimate for HI’s EPS is pegged at 50 cents for the fiscal third quarter, suggesting a decline of 41.2% from the year-ago reported figure. The Zacks Consensus Estimate for total revenues is pinned at $572.4 million, indicating a year-over-year decrease of 27.3%.

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