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Grainger Q3 Earnings & Revenues Surpass Estimates, Increase Y/Y

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Key Takeaways

  • Grainger's Q3 EPS of $10.21 beat estimates and rose 3.4% y/y on a solid segment performance.
  • Quarterly revenues grew 6.1% to $4.66B, led by 18.2% daily sales growth in Endless Assortment.
  • Grainger updated its 2025 outlook, guiding net sales of $17.8-$18B and EPS of $39.00-$39.75.

W.W. Grainger, Inc. ((GWW - Free Report) ) has reported earnings per share (EPS) of $10.21 in third-quarter 2025, beating the Zacks Consensus Estimate of $9.93. The bottom line improved 3.4% year over year, aided by the solid performances of the High-Touch Solutions N.A. and Endless Assortment segments.

Grainger’s quarterly revenues rose 6.1% year over year to $4.66 billion. The top line surpassed the Zacks Consensus Estimate of $4.64 billion. Daily sales increased 6.1% from the prior-year quarter. We had predicted daily sales growth of 5.5% for 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 Q3 Segmental Performance

The High-Touch Solutions N.A. segment’s daily sales rose 3.4% in the quarter from the third quarter of 2024. The upside was driven by volume growth and improving price contribution. Our model predicted year-over-year organic daily sales growth of 3.2% for the quarter.

The Endless Assortment segment’s daily sales moved up 18.2% in the quarter due to solid performance at both MonotaRO and Zoro. Our model predicted year-over-year organic daily sales growth of 15.4% for the quarter.

GWW’s Q3 Operational Update

The cost of sales climbed 7.2% year over year to $2.86 billion. The gross profit rose 4.5% year over year to $1.8 billion. The gross margin was 38.6% in the quarter compared with the prior-year period’s 39.2%.

Selling, general and administrative expenses rose 24.5% year over year to $1.29 billion. Grainger’s operating income in the quarter was down 25.5% year over year to $511 million. The operating margin was 15.2% compared with 15.6% in the prior-year quarter.

Grainger’s Q3 Cash Flow & Balance Sheet Updates

The company had cash and cash equivalents of $0.54 billion at the end of the third quarter of 2025, down from $1.04 billion at the 2024 end. The cash flow from operating activities was $597 million in the third quarter of 2025 compared with $611 million in the prior-year quarter.

The long-term debt was $2.34 billion as of Sept. 30, 2025, compared with $2.28 billion as of Dec. 31, 2024. Grainger returned $399 million to shareholders through dividends and share buybacks in the reported quarter.

GWW Updates 2025 Outlook

GWW expects net sales of $17.8-$18.0 billion, updated from the prior stated $17.9-$18.2 million. Sales growth is anticipated to be 3.9-4.7%. Daily sales growth is envisioned at 4.4-5.1% compared with the earlier mentioned 4.5-6%. EPS is expected to be $39.00-$39.75 compared with the prior stated $38.50-$40.25.

Grainger Stock’s Price Performance

In the past year, the company’s shares have lost 12.8% compared with the industry’s decline of 4.9%.

 

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 Performances

MSC Industrial Direct Company, Inc. ((MSM - Free Report) ) reported a fourth-quarter fiscal 2025 adjusted EPS of $1.09, which beat the Zacks Consensus Estimate of $1.03. The bottom line increased 6% year over year.

MSC Industrial generated revenues of around $978 million in the quarter under review, up 2.7% from $952 million in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $965 million.

SiteOne Landscape Supply, Inc. ((SITE - Free Report) ) recorded an adjusted EPS of $1.31 in the third quarter of 2025, beating the Zacks Consensus Estimate of $1.22. The company posted earnings of 97 cents per share in the third quarter of 2024.

SiteOne Landscape registered revenues of $1.26 billion for the September-end quarter of 2025, beating the Zacks Consensus Estimate of $1.25. The top line rose 4% year over year.

Industrial Services Stock Awaiting Results

Hillenbrand, Inc. ((HI - Free Report) ) is set to release fourth-quarter fiscal 2025 results soon.

The Zacks Consensus Estimate for HI’s EPS is pegged at 62 cents for the fiscal fourth quarter, suggesting a decline of 38.6% from the year-ago reported figure. The Zacks Consensus Estimate for total revenues is pinned at $558.9 million, indicating a year-over-year decrease of 33.3%.

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