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Grainger Earnings Beat Estimates in Q4, Sales Increase Y/Y

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Key Takeaways

  • Grainger posted Q4 EPS of $9.44, narrowly beating estimates, as quarterly sales increased 4.5% y/y to $4.43B.
  • GWW's Endless Assortment daily sales jumped 14.3%, driven by strong results at MonotaRO and Zoro.
  • Grainger saw the operating margin slip to 14.3% as higher costs and SG&A growth weighed on profits.

W.W. Grainger, Inc. (GWW - Free Report) has reported adjusted earnings per share (EPS) of $9.44 in fourth-quarter 2025, beating the Zacks Consensus Estimate of $9.43. It reported earnings of $$9.71 per share in the year-ago quarter.

Grainger’s quarterly sales rose 4.5% year over year to $4.43 billion. However, the top line beat the Zacks Consensus Estimate of $4.40 billion. Daily sales increased 4.5% from the prior-year quarter. We predicted daily sales to increase 4.9%.

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 Q4 Segmental Performance

The High-Touch Solutions N.A. segment’s daily sales rose 2.2% in the quarter from the fourth quarter of 2025 due to continued growth in the United States and Canada. Our model predicted year-over-year organic daily sales growth of 3.4%.

The Endless Assortment segment’s daily sales grew 14.3% year over year in the quarter due to strong performance at both MonotaRO and Zoro. Our model predicted organic daily sales growth of 18.2% for the quarter.

GWW’s Q4 Operational Update

The cost of sales climbed 4.8% year over year to $2.68 billion. The gross profit rose 4.2% year over year to $1.74 billion. The gross margin came in at 39.5% in the quarter compared with the prior-year period’s 39.6%.

Selling, general and administrative expenses rose 6.6% year over year to $1.11 billion. Grainger’s operating income in the quarter was up 0.2% year over year to $634 million. The operating margin came in at 14.3% compared with 15% in the prior-year quarter.

Grainger’s Q4 Cash Flow & Balance Sheet Updates

The company had cash and cash equivalents of $0.59 billion at the end of 2026, down from $1.04 billion at the end of 2024. Cash flow from operating activities was $2.02 billion in 2025 compared with $2.11 billion last year.

The long-term debt was $2.36 billion as of Dec. 31, 2025, compared with $2.28 million as of Dec. 31, 2024. Grainger returned $1.5 billion to shareholders via dividends and share buybacks through 2025.

GWW’s 2025 Performance

Adjusted EPS decreased 9% year over year to $35.40 in 2025, which missed the Zacks Consensus Estimate of $39.45. The figure came below the company’s expected EPS of $39.00-$39.75. 

Sales improved 4.5% year over year to $17.94 billion and came within the company’s guidance of $17.8-$18 billion. The top line beat the Zacks Consensus Estimate of $17.92 billion.

Grainger’s 2026 Outlook

The company expects net sales between $18.7 billion and $19.1 billion. Sales growth is expected to be 4.2-6.7%. Daily sales growth is envisioned at 6.5-9%. Earnings per share are expected to be $42.25-$44.75.

GWW Stock’s Price Performance

In the past year, GWW shares have gained 5.7% against the industry’s breakeven.

 

Zacks Investment Research Image Source: Zacks Investment Research

 

Grainger’s Zacks Rank

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

GWW’s Peer Performances

MSC Industrial Direct Company, Inc. (MSM - Free Report) reported first-quarter fiscal 2026 (ended on Nov. 30, 2025) adjusted earnings per share of 99 cents, beating the Zacks Consensus Estimate of 95 cents. The bottom line marked 15% growth from earnings of 86 cents in the year-ago quarter. 

MSM Industrial generated sales of $966 million in the quarter under review, up 4.1% from the year-ago quarter. The top line, however, surpassed the Zacks Consensus Estimate of $964 million.

Industrial Services Stocks Awaiting Results

SiteOne Landscape Supply, Inc. (SITE - Free Report) is set to release fourth-quarter 2025 results on Feb. 11.

The Zacks Consensus Estimate for SITE’s loss per share is pegged at 28 cents for the fourth quarter. The company incurred a loss of 48 cents in the year-ago quarter. The Zacks Consensus Estimate for total revenues is pinned at $1.06 billion, indicating a year-over-year increase of 4.2%.

LegalZoom.com, Inc. (LZ - Free Report) is set to release fourth-quarter 2025 results on Feb. 19.

The Zacks Consensus Estimate for LZ’s earnings per share is pegged at 18 cents for the fourth quarter. The company reported earnings of 19 cents in the year-ago quarter. The Zacks Consensus Estimate for total revenues is pinned at $184.6 million, indicating a year-over-year increase of 14.2%.

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